Renting out a room is a great way to generate extra income, especially if you are trying to pay off your mortgage. However, there are some things you need to keep in mind before you start. If you are not careful, you could end up in trouble.
First, you need to do some research on your own. Your state may have its own set of laws, and you will also want to check the local HOA rules. You may also need to get a rental permit. The more informed you are about your home’s regulations, the better off you’ll be.
For example, if you plan on renting out a bedroom in your home, you may have to provide a smoke detector, a window for exit in an emergency, and possibly a window for your tenants to have their own bathroom. Some cities may even require unique outdoor access for rented rooms.
The room rental may be a good way to generate an extra income, but you need to take a few precautions to avoid becoming a property tycoon. You should have a clean and safe space, and the electricity, plumbing, and heating should be in working order. It may also be wise to have a separate bank account for the deposit.
You should also try to find a tenant who possesses the feng shui to fit in with the rest of your home. While it’s tempting to lease out a vacant room in your home to strangers, you will be more likely to collect on your rent if you go through a reputable property manager.
The best place to look for room rental options is your local Craigslist. There are plenty of other options, including posting a flier in a local newspaper or on the bulletin board of a local college. Having a flier on hand can also prevent you from wasting time on a potential tenant who isn’t a good match.
The other good old-fashioned way to rent out a room in your home is to make it available through a roommate finder service. These services are similar to online dating sites, and they connect you with renters who have similar preferences. They can be a great way to get your foot in the door, as long as you know what you’re doing.
There are plenty of websites and apps that can help you find a roommate and make your life easier, but don’t underestimate the importance of a written lease. A solid agreement should be written up by a qualified real estate attorney, and you’ll need to explain everything in the contract.
It should also be noted that a lot of communities are starting to crack down on short-term rentals. In fact, many homeowners associations have requirements for a minimum year-long lease before you can rent out a room in your house. But if you have a good idea of who you’re going to rent to, and you’re a responsible person who pays your bills on time, it’s a worthwhile endeavor.