So you want to rent out your room in a property that you are living in now and don’t know how to go about it? I want to introduce to you some strategies, and basic information that you will need to have to get started doing just that.
Landlords do not typically live with their lodgers by making a point to keep their homes and their rental properties separate. In recent years though this is becoming more and more common. In most cases this is driven by a financial necessity, but others might simply want to have another person in their home. Be it simply for socializing or to provide some extra security, and at that point the additional rent is just a bonus.
Are you ready to rent out a room to another person?
Before you begin the search for a new roommate, you will need to ask yourself some important questions and do some quick research.
Is it even legal to rent out a room where you live?
Zoning laws in your area may be an issue. If your neighborhood is zoned for single-family residences and you are running a rooming house, you may violate those regulations. Some condo or planned unit development the homeowners associations for these places may have rules that restrict residents from bringing in lodgers.
Do you have the space?
A single good sized bedroom which is ideally furnished with a comfortable bed, along with adequate storage and lighting and a separate bathroom would be great. But before renting out the space you have, you may need to fix up the space to appeal to potential renters.
How much rent can you collect from your room?
Before you get your head stuck in the clouds about how much potential money you may end up making by renting out your room, check out what comparable rates are on Craigslist or local college housing offices. Then use those figures as a guideline for how much to charge.
You will also need to consider the additional costs associated with having a roommate, such as additional electricity, heat, and household supplies.
What is your true motivation for bringing in a Lodger?
A responsible lodger is one who pays rent on time and is pleasant to be around. It’s another thing altogether to expect a lodger to perform any sort of work or commit to being home at any particular time, especially if you need someone to check in on your pet or an elderly person living with you.
Is there a market for the room, and for the type of person you want to live with?
College towns typically have a large population of people who want to share a house with others while still having the feeling of having their own place. However, if you are older, you may not want to live with an 18-year old. You might discover that there is only a market for your room during certain times of the year.
Do you have the personality for this?
If you have lived alone for a period of time and value your privacy, or if you realize that living with other people will force you to give up some of the freedoms you have while living alone, then renting out a room may not be right for you. If certain personality types irritate you, make sure to find out during the interview process if any of these types will be living with you.
Follow these Basic Steps to Rent out your Room
After you have asked yourself the questions above and have done a little research, it is time to bring in your potential renter. Follow these basic steps below to do so
- Make any necessary changes to the room, such as fixing up the space and making it rentable.
- You will need a signed lease agreement. When drafting a lease agreement, identify key terms and policies. Include a monthly lease that can be terminated on short notice but also consider doing a longer-term lease with more provisions. Include items such as: kitchen etiquette, quiet times, guests, home business restrictions, shared chores and so on.
- Decide on the best locations to advertise your rental. Word-of-mouth and college housing offices may attract different types of tenants, so be aware of what you are getting into before you advertise.
- Interview prospective tenants, and give them a rental application and full disclosure on how the household needs to be run. Be candid and clear here.
- Make sure to discuss practical issues like pets, noise, drinking, TV preferences, and music tastes before signing a lease with any prospective tenant.
- Sign the rental agreement
- Get your new tenant moved in!
