Wednesday, May 7, 2014
Renting out a room is a great way to earn extra income to pay your #apartment rent or to help cover the mortgage, but you need to protect yourself. Check out Investopedia.com's advice for renting out a spare room and make the transition to landlord a smooth one.
First of all, if you are a renter, make sure your lease doesn't prohibit sub-leases, many do. If you own or you have no clause prohibiting sub-leases, then you can explore renting out a room more in-depth.
Decide exactly which room or rooms you are going to rent out and make sure the space is ready. Think about practical considerations like what parts of the property your tenant can use, will any furniture be provided, and where the tenant will park. If you want to charge the going rate for rent in your area, you need to match other properties as far as the quality of accommodations.
Make sure your tenant will be safe and comfortable in their home. Broken items or noisy neighbors that may have been merely annoying to you can cause a tenant to move out or sue you if they get injured.
Speaking of worst-case scenarios, make sure you have enough insurance to cover you if anything unexpected happens on your property to your tenant or their guests. Also, if your home was built prior to 1978, be certain to follow laws regarding lead paint disclosure.
Make sure you properly vet and screen prospective tenants by conducting criminal background and credit checks. Once you've found the perfect person, make sure both parties sign a lease agreement that lays out both sides responsibilities and rights.