Have your kids grown up and moved away? Do you have a couple of spare rooms just sitting empty?
People are choosing to turn their extra space into a way to generate additional income. In fact, 23% of baby boomers are renting out the spare room in their home to bring in some extra cash.
If you’re wondering how to rent out a room in your house, stick around. We’ll show you what you need to know before you put out that “for rent” ad or list your room on a peer-to-peer marketplace.
Research the Law
Before you rent out a room, it’s a good idea to familiarize yourself with the legal ramifications.
What are your city or town’s zoning laws regarding renting rooms in a house? You may need a license or permit to rent to people who are not related to you.
What are the tenant-landlord laws in your state? Go to your state’s official website to find the information you need.
The last legal hurdle you need to jump before renting a room is your HOA guidelines. Does your homeowners’ association allow homeowners to have renters?
When figuring out how to rent a room in your house, you should consider the necessary changes to your homeowners’ insurance policy. Talk with your insurance agent about any additional coverage you may need when having a tenant in your home.
Some companies will raise your rate significantly, some not at all, and some may revoke your coverage. In that case, you have the option of getting landlord insurance which is usually more costly.
Having landlord insurance is a good idea if you plan on renting out more than one room or even the whole house. You can find cheap landlord insurance at QuoteRadar if you live in the UK.
Once you have the all-clear to rent a room, it’s time to advertise. Gone are the days of a newspaper or online ad. You can list your room on any number of sites that are the equivalent of a dating app.
Be sure to use pictures that show the room in the best light. Be specific about other areas of the home the tenant may use like your pool, garage, or parking space. Show pictures of the outside of the home as well.
Once you’ve listed your room, you can sort through the various potential tenants by looking at their profile and lifestyle.
Arrange an Interview, Get References and Do a Credit Check
Before allowing a stranger to reside in your home, ask the questions you need to know before sharing a space with someone. Get references and verify their legitimacy.
Do a credit check to make sure the potential renter pays bills on time.
Visit this guide for more information on house hacking.
How to Rent Out a Room in Your House
Now that you know how to rent out a room in your house, you can start getting it prepared. All you have to do next is decide where the extra cash will go.
Do you like what you learned here? We have plenty of more tips, tricks, and ideas for your home. Check out our site for other blog articles to help you make the most of your home while saving you money in the process.