Renting out a room in the home can be a good investment that can help a homeowner make an extra coin. A number of homeowners choose to rent out a room to help make ends meet. It helps in taking care of small bills in the home as well. At times, renting out multiple rooms in a home individually can also fetch the property owner more money than renting the entire home on a single lease. However, there are various things to consider when learning how to rent out a room in a home.
If you occupy the rest of the space in the home, you will want to maintain some order and privacy around your property. You will also want your rental room to fetch you the maximum amount of money in monthly rent, so preparation will be key. To help you make that extra income off your unused rooms, below are some key pointers you can borrow on how to rent out a room in a home.
How to Rent Out a Room in a Home – 6 Tips
Chose and Prepare the Space to Rent Out
Before renting out a room, it is important to identify the rooms available. Rooms that have private bathrooms will get tenants easily. Furthermore, bigger rooms such as the master suite and the basement apartment are more preferred by tenants and will get more in rent than other small rooms. Renting is a good investment for homeowners especially those who are on mortgage plans. It will also be a good idea to refurbish the room to be rented, installed safety locks, declutter, and put anything else in order where attention is required. Space needs to appear rentable and presentable to your prospective tenants.
Check Local Rent Rates
The next important step is to decide on what you’re going to charge for the room as monthly rent. Rent should be favorable and in accordance with the area prices. Depending on the availability of extra services provided, or the quality of the house, the prices can differ slightly. There are websites such as rentometer.com where one can check on the rent being charged for different kinds of houses/ rooms. This information can be used to reasonably determine what to charge for rent based on the local rates and the zip code.
Place the Ad
Using ads to market the rooms is an easy way to getting a tenant. Ads can be placed in the local newspapers or using sites on the internet. When creating an ad, one should be very specific about the rooms; if possible, a picture can get more response than words only. More so, the range of access to other amenities such as the kitchen, pool, or backyard by the tenants should be clearly stipulated. Lastly, the rules and the kind of tenants needed should be well described.
Interviewing is the next step to enquire more information about the applicants. Information to be given may include employment status, living habits or their personal backgrounds. It is better to choose someone whose habits suit you and those close around you. It is vital to communicate with references the applicants handed in, especially landlords, to help you know their living habits or if they left their apartment in a good or bad condition.
Background and Credit Check
You don’t want to share a roof with a potential criminal or fraudster. A background and credit check on the possible tenant is important to find more about them. Local police may give you this information. For credit check, however, it can be difficult for banks and credit bureaus to disclose financial information to a third party. You may, therefore, have to ask for the tenants’ current certified credit report so you will get the information from them. This may seem like too much but it may help find out if the potential tenant has a criminal history or fraudulent activities.
When you find the best tenant, it is better to clearly set up boundaries. Be clear about things that you can’t tolerate as the residential landlord. Some examples are loud music at night, smoking in the house, and so on. Create a rental contract to be signed by both parties; you and the tenant. The agreement should capture important details. They include when to pay rent, which rooms the tenants can access, and what time the tenant isn’t supposed to arrive, whether there are late payment penalties, and so on. These details have to be discussed and agreed upon before the tenant moves in.
With the above tips, getting a tenant for your extra room can be an easier and less daunting process.