If you are looking for a way to bring in additional income, renting out a room in your home might be an option to consider. After all, it might seem nice to be able to bring in a monthly income for a room that you aren’t really using anyway. Other than the guidelines for resident landlord stipulated here, you must first look at your own personal situation to determine if this is the right move for you.
Do You Have Enough Space?
First of all, you’ll want to determine if you have enough space in your home to house someone else comfortably. It isn’t enough to simply have another bedroom; it’s generally best if the bedroom is well-separated from the other bedrooms and common areas in your home. For example, a room over the garage or in the basement can be ideal.
Will You Be Able to Charge Enough to Make it Worthwhile?
You’ll also have to determine how much you will be able to charge for the room if you rent it out. To do so, you’ll need to check the average rental rates for rooms in your area. If you find that rooms aren’t renting for very much in your neighbourhood, you might find that you are better off looking for another method of bringing additional income into your home.
How Do Others in Your Home Feel About the Idea?
You’ll also have to consider how your decision will affect others in the home. If you have children, you might find that you don’t feel as comfortable bringing a stranger into the house as you might if you lived alone. If you have a partner who lives with you, you will obviously want to ask for his or her input before making this type of decision. You don’t want anyone in your home to feel uncomfortable or to be put at risk due to allowing someone to rent a room, nor do you probably want to allow it to cause a rift between you and others in the household.
Can You Take Steps to Protect Yourself?
Before making this type of commitment, you’ll want to look into running a background check on the individual who will be moving in. You may also want to consult with an attorney about writing up a lease that will protect you.
As you can see, there are a few considerations that you should consider before renting out a room in your home. However, if you think it’s a good idea after giving it some thought, it’s worth giving it a try with a short-term lease so that you can change your mind if you need to. Also, make sure that you protect yourself with proper landlord insurance to help prevent liability for any accidents or other issues once someone else moves into your home.