Renting out a room in your home is a great way to make some extra money, but the endeavor isn’t without its share of risks. Homeowners must not only consider the people they rent to, but also whether their property meets the requirements. Here are several tips to make the most of the experience.
- Prepare the Room and Property
Those looking to rent out a room must first ensure they properly prepare the rental space and the rest of their home. That means putting deadbolts on all bedroom doors, making minor home repairs, securing all valuables and ensuring renters have proper egress in case of a fire.
- Write Agreements Down
Putting a lease agreement on paper works to everyone’s advantage. Landlords protect themselves, and tenants understand their obligations and rights. Verbal agreements open the door to misinterpretation and unsavory situations, such as a squatter or unpaid rent. Agreements should include details such as rent, quiet hours, spaces tenants have access to and laundry hours.
- Choose the Rental Room
Some rooms are easier and better to rent out than others. For instance, basement living spaces can offer privacy and a sense of comfort for certain tenants. A room that has its own bathroom could also draw more potential candidates. The more features a room or space has, the more justification a homeowner has for asking for higher rent.
- Investigate Applicants
All applicants require thorough vetting before becoming tenants and gaining access to a home. A background check company, former landlords and a credit check can give landlords the information necessary to feel confident in opening their home to a specific candidate. Further, trusting one’s instincts can help overcome any doubts a person may have about applicants who look fantastic on paper but do not come across so great in person.
- Be Specific in Advertisements
Homeowners likely have an idea of their dream tenant. While it may be impossible to find a tenant who checks every box, being as specific as possible in an advertisement helps property owners come close to perfection. For example, homeowners who do not smoke may not want tenants who smoke, even if they do so outside. Those who keep late hours may have a hard time living with a person who’s a light sleeper and goes to bed early.
The right precautions when renting out a room can help property owners avoid major disasters. Finding ideal tenants becomes easier with the right insights.