Are you searching for a way to make some extra cash each month? If you own a home and have some extra space, renting out an available room could provide you with the additional income you need!
If you’re interested in supplementing your income as the property manager of your home, lowering your monthly utility bills and gaining the ability to pay off your mortgage faster, the following steps will ensure you’re prepared to both rent and take on the responsibility!
Compare the Local Market
Upon deciding to rent out unused space, homeowners should first review the features which can be attractive to potential tenants to advertise and decide on an acceptable monthly rent. Properties with a detached or separated living space, private amenities such as kitchens, bathrooms and entry ways can fetch higher prices. Because of this, furnished basements are often popular rental spaces, as it allows for the privacy of both owners and renters and provides all the standard features.
Set Standards and Advertise!
If an individual is planning on sharing their personal space with a renter, or entrusting a tenant with living in separate quarters, they should be careful to only rent to the right people. Clear guidelines should be established regarding the type of person sought, including their financial standing, sex, age, occupation, personality type and habits. Once an outline of acceptable characteristics is determined for vetting, homeowners will want to consider how to advertise the available housing. Local print publications can reach a large number of area residents, but posting on an online community forum may generate an increased amount of interest. Websites such as Craig’s List or Roommates.com are a great place to start. Enlisting the assistance of a professional real estate agent may save homeowners a substantial amount of frustration and time, as they will handle the communication with applicants and coordinate interviews so you don’t have to!
Draft Lease and Include Your Guidelines
After you’ve found the right tenant, homeowners will want to have a straightforward and frank discussion with them regarding expectations associated with noise levels and general maintenance of the space. A legally binding document, which outlines monthly rent payments and other pertinent details, should be drafted by the home owner (and reviewed by an attorney!) and signed by both them and the tenant. This can help protect the property owners from losing money if a renter decides to default on the agreement.
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