When we are brainstorming ideas for bringing in extra income, renting out a room in your home is not something that most of us consider, and it is definitely not for everyone. However, some people know they will have roommates to help pay the cost, when they buy a home.
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. Potential rental revenue can be estimated by using websites like Roommates.com and Craigslist to compare rental rates for their area.
See if taking in a renter is within your terms and conditions by checking with your mortgage provider. 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 may need to fit smoke alarms and fire extinguishing equipment.
Draw up a shortlist of prospective tenants, and save time, by first conducting initial interviews over the telephone. Arrange face-to-face interviews once you've narrowed the list down, and if you're worried about strangers coming to your house invite a friend to interview with you.
Be sure to specify all the terms in a standard, written rental agreement. You don't want anyone misunderstanding what they expect from you as a landlord and room-mate, and what you expect of them as a renter.
Do a credit check and a criminal background check. These two checks help you know what sort of person the potential tenant is. This also means you should trust your instinct if there is any doubt. Do not rent to anyone you have a negative feeling about. Get a feel for the applicant's personality. Do you think you could share your living space with them? Before making your choice, these are all factors to consider.
Make house rules just like you do in any family. Make sure there are guidelines about doing dishes, taking out the trash, so on and so forth. Be clear when spelling this out. If you don't do this, all the chores might fall upon you.
As tentants are paying you to live there, you should be willing to be a little flexible when renting a home in your house; a little leniency simply makes the situation more pleasant for everyone.
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. Potential rental revenue can be estimated by using websites like Roommates.com and Craigslist to compare rental rates for their area.
See if taking in a renter is within your terms and conditions by checking with your mortgage provider. 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 may need to fit smoke alarms and fire extinguishing equipment.
Draw up a shortlist of prospective tenants, and save time, by first conducting initial interviews over the telephone. Arrange face-to-face interviews once you've narrowed the list down, and if you're worried about strangers coming to your house invite a friend to interview with you.
Be sure to specify all the terms in a standard, written rental agreement. You don't want anyone misunderstanding what they expect from you as a landlord and room-mate, and what you expect of them as a renter.
Do a credit check and a criminal background check. These two checks help you know what sort of person the potential tenant is. This also means you should trust your instinct if there is any doubt. Do not rent to anyone you have a negative feeling about. Get a feel for the applicant's personality. Do you think you could share your living space with them? Before making your choice, these are all factors to consider.
Make house rules just like you do in any family. Make sure there are guidelines about doing dishes, taking out the trash, so on and so forth. Be clear when spelling this out. If you don't do this, all the chores might fall upon you.
As tentants are paying you to live there, you should be willing to be a little flexible when renting a home in your house; a little leniency simply makes the situation more pleasant for everyone.
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