Are you struggling to meet all your bills each month? Do you wish your income was a little higher? Consider renting a room for extra income!
Renting out a room in your house helps ease the burden on your wallet while also offering the opportunity to help others who can’t afford a home of their own.
Are you wondering how to rent out a room? Keep reading for three pro tips for renting a room in your house.
1. How to Rent Out a Room
When you’re going to rent out a room or two, determine which rooms you want to rent out. You may want to rent out the best room in the house, such as the master bedroom with an ensuite bathroom. Renting out the nicer room means you get a higher monthly rent check.
Does your family love hanging out in the basement because it’s got a bedroom, bathroom, living room, and a separate entrance? That’s great, but all those features mean you can make a lot more money renting it out versus renting out one bedroom in the main part of the house.
Make sure the area you’re renting out is clean and everything is in good working order.
2. Determine the Costs
When it comes to house hacking, renting out part of the house is a great way to bring in extra money. Before you rent out a room, make sure you set a fair price.
Check the local ads to make sure your rental price isn’t too high or too low. Make sure you’re making a fair comparison. Your one small room shouldn’t fetch the same price as someone else’s master bedroom or basement apartment.
When you rent out a room, it’s fair to ask for a security deposit to cover any damages for which your renter is at fault. You can set the price higher to include all utilities or ask the renter to pay a percentage of the costs.
3. Place Your For-Rent Ads
Take photos of the room you’re renting out as well as photos of the rest of the home. Also, include the front yard, backyard, and a few photos of the neighborhood in your ads.
Give potential renters lots of information about the house such as:
- Is it a private bedroom with its own bathroom?
- Is there a separate entrance?
- Do you want a male or female or either?
- The amount of rent and deposit
- Date the room is available
- Smoking policy
- Pet policy
- Duration of the rental agreement
- Don’t forget to list extra amenities such as a pool, hot tub, or gym (if you’re in a condo or apartment)
It won’t take long for the applications to roll in! Familiarize yourself with the Fair Housing Act and never discriminate due to race, color, religion, or sexual orientation.
Renting a Room
Follow these tips for renting out a room and you’ll be on your way to some extra monthly income soon. Renting a room is a great way to financially leverage that extra space in your home.
Are you looking for more great lifestyle and home living tips? Find them on the blog!