Most of us don't consider renting out a room in our home when thinking of ways to earn additional income, and it does not suit everybody. In fact, some people buy a home knowing that they'll have roommates to help pay the cost.
When you are thinking about bringing in a tenant, it's important to remember is that it's a business deal. A potential landlord's first order of business is to decide whether the income is worth the loss of privacy and living space. Homeowners can estimate their potential rental revenue by comparing rental rates for their area on websites such as Roommates.com and Craigslist.
Check with your mortgage provider to see if taking in a renter is within your terms and conditions. And definitely let your insurance company know that you're renting a bedroom and ask if you need any additional coverage. You may or may not need landlords insurance, but, in particular, you need to know things such as what happens if your tenant is bringing a dog that is on the dangerous-dog list and won't be covered.
Ensure your home meets safety regulations. You might have to install fire extinguishing equipment and smoke alarms.
Save time by conducting initial interviews over the telephone at first to draw up a shortlist of prospective tenants. When you have a shortlist, do in-person interviews - invite a friend if you do not feel comfortable having strangers in your home.
Just like anyone else would, make sure you draft up a regular rental agreement, in writing, with all the terms set out. You don't want anyone misunderstanding what you expect of them as a renter and what they expect from you as a landlord and room-mate.
Do a criminal background check as well as a credit check. Both of these will give you a good idea of what kind of person the applicant is. This also means you should trust your instinct if there is any doubt. If you get a bad feeling about someone, don't rent to them. The personality of the applicant is a consideration. Would you be okay with sharing a living space with this person? Consider all these factors before you choose your tenant.
Make house rules just like you do in any family. There should be some ground rules regarding dishwashing, garbage collection and other duties. This needs to be spelled out very clearly. If it is not, you may end up doing all of the above.
When renting a home in your house, tenants are paying you to live there so you should be willing to be a little flexible; the situation is simply more pleasant for everyone with a little leniency.
When you are thinking about bringing in a tenant, it's important to remember is that it's a business deal. A potential landlord's first order of business is to decide whether the income is worth the loss of privacy and living space. Homeowners can estimate their potential rental revenue by comparing rental rates for their area on websites such as Roommates.com and Craigslist.
Check with your mortgage provider to see if taking in a renter is within your terms and conditions. And definitely let your insurance company know that you're renting a bedroom and ask if you need any additional coverage. You may or may not need landlords insurance, but, in particular, you need to know things such as what happens if your tenant is bringing a dog that is on the dangerous-dog list and won't be covered.
Ensure your home meets safety regulations. You might have to install fire extinguishing equipment and smoke alarms.
Save time by conducting initial interviews over the telephone at first to draw up a shortlist of prospective tenants. When you have a shortlist, do in-person interviews - invite a friend if you do not feel comfortable having strangers in your home.
Just like anyone else would, make sure you draft up a regular rental agreement, in writing, with all the terms set out. You don't want anyone misunderstanding what you expect of them as a renter and what they expect from you as a landlord and room-mate.
Do a criminal background check as well as a credit check. Both of these will give you a good idea of what kind of person the applicant is. This also means you should trust your instinct if there is any doubt. If you get a bad feeling about someone, don't rent to them. The personality of the applicant is a consideration. Would you be okay with sharing a living space with this person? Consider all these factors before you choose your tenant.
Make house rules just like you do in any family. There should be some ground rules regarding dishwashing, garbage collection and other duties. This needs to be spelled out very clearly. If it is not, you may end up doing all of the above.
When renting a home in your house, tenants are paying you to live there so you should be willing to be a little flexible; the situation is simply more pleasant for everyone with a little leniency.
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