Maybe during these trying times, less household income has made its round to you. Are you sitting with a larger house and possibly a spare bedroom or two? Well, have you considered renting them out for some extra cash? If so, you’ll likely discover it’s fairly easy to do. Here’s a few pointers to ponder if you go forward with it.
First, consider your location, A lot of cities and towns have a big demand for room rentals, especially in high rent areas. So, think of where you fit in. Ask realtors, business people or friends to help you find your place. From personal experience, while attending university, I can tell you that problems can arise while sharing an abode with others, like dividing utility bills, cover sone member’s missing or late rent, sharing common areas like the kitchen, bath & living room. Basically, life isn’t perfect, so expect some snags.
Here’s how to handle things:
Set a fair rent, but don’t cheat yourself. Again, realtors, the local newspaper, classified websites, and related sources will help you determine this. When you are ready, place your own ad for at least a few days to get some calls & showings. Try to run part of your ad on a Friday or Saturday.
Check for local regulations. Just to be safe, check with local code enforcement before renting, to see if a permit, or other certification is required. Also, room renting is not permitted in some places. Although those regulations are difficult to enforce, you don’t want to be in the wrong.
Plan ahead! Many room renters will stay for years. Those people love the arrangement because, usually, they don’t have to pay the utility or other household expenses. If they don’t have any rent issues or dwelling problems, they will be content with your arrangement. However, if you have future plans, like moving yourself, or selling the property, it might be wise to consider this before renting out the rooms to long term tenants.
Establish in-house ground rules. Be sure your room renters know what they’re limits are in your house. This will avoid any future issues. For example, this would include things like smoking/pets/late night or early hours/ noise. It should also include chores and tasks…who mows the lawn, takes out the trash, does the dishes. And, of course, personal hygiene and care-taking of their rooms.
You pay the utilities and include them in the rent. It’s just simpler and will avoid any arguments about the aforementioned division of utility bills, who uses the telephone or watches TV the most If your utilities go up too much, just raise the rent. It works… and don’t give into dividing anything to a room renter that does’nt want to cooperate! Stick to your guns!
Finally, how to pick the right person. Be sure to run a credit check on them, especially if they will be long term. You can find renter application forms on the internet to help guide you. It’s also important to initially gather as much information as possible about the person, without crossing the line of Fair Housing statutes. Get their phone number(s), emergency contact info work info, etc. In the end, it’s still often a matter of your “gut” feeling, or intuition about your choice of a roommate.
How much money will you make?
Good question. Again, it has a lot to do with your location. Some places, like rural Virginia, it’s still possible to rent a room for $550 month. In my Pennsylvania rural area, it can be lower. Of course, the facility and amenities also have their effect on the rent. But, for sake of an example, let’s say your two spare rooms are rented for $550/month. That’s an extra $13,200 annually! This should be mostly profit, since your bills won’t increase much with only two additional house guests. So, there you have it! While you yourself may have to adjust to the situation, that extra household money should help you out.
For more rental tips for property managers and landlords, visit us at: https://tcpros.co/Rzic1
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