Struggling to make ends meet month after month is too stressful to keep up for long. And unfortunately, in the current state of the economy, more and more people are finding themselves in this predicament. However, if you’re a homeowner, there’s an option available to you that you may not have thought of yet: renting out a part of your home.
It may seem like a drastic solution, but if you carefully vet your tenants, it’s a great opportunity to make more money safely. Finding a renter you can trust is the biggest challenge. However, if you take all the necessary steps, you can successfully rent out a room for a bit of much-needed extra income. Let’s have a look at why renting out a part of your home can be a great solution and how to do it:
Benefits of Renting Out a Room
The main advantage of renting out a part of your home is also the primary reason why you’re considering it: the income will help significantly with meeting your living expenses. Imagine everything you could do with some extra money in your pocket, and you’ll see the allure. What’s more, you could also have an agreement set in place with your tenant that they help out around the house in exchange for a lower rent rate. It can come in extremely handy for busy individuals or families who don’t have that much time for home maintenance.
Ensuring You’re Renting By the Book
When you’re renting, the first step is to get familiar with your local tenant laws. Providing that you’re renting by the book can save you a lot of legal trouble later, and it sets the tone for your future relationship with the tenant. If you approach renting seriously, you’ll be more likely to find a suitable tenant.
Check whether you need individual insurance, and comply with all the federal and state housing laws. Among other things, this means you can’t refuse to rent to anyone based on their race, ethnic background, sex, disability, religion or genetic status. Get your requirements in check and make sure you’re consistent throughout your renting approval process.
Picking Out the Right Tenant
Finding the right tenant isn’t impossible if you can learn enough about them to determine whether they’re a right fit. If you can, find out their reasons for moving, their place of work and whether their current landlord would give them a good reference. Stick to the questions that are safe to ask, but it will give you a better idea of who your potential tenant is.
Securing Your Valuables
It’s better to be safe than sorry, so you should take steps to ensure your valuables are safe. Items that you might want to keep in a safe, or behind locked doors, are valuables such as jewelry and cash. However, it’s also a good idea to store any sensitive documents that might be used to perform identity theft.
Renting is a big decision, but it can yield significant benefits if you don’t rush into it and take special care to be compliant with state and federal tenant laws. It’s also crucial to thoroughly check out your tenant before you allow them into your home.
No matter what type of real estate market you’re in, it’s critical to work with a professional agent – one with a proven track record of results. If you have a real estate related question, we’re here to help!