The Ultimate Mortgage Helper
Renting Out Rooms
Would an extra $400 or $500 a month go a long ways towards helping you make ends meet? Have you thought about renting out rooms in your home?
Looking for a method to get your house paid off faster without having to change your spending habits? Do you simply have too much space in your home that could be used to generate cash? These could be signs that renting out rooms might work for you.
Or maybe not, as this isn’t for everyone! But there are thousands of people using this tactic to help them get by, to increase their cash flow and to get their homes paid off quicker.
If you’re outgoing and enjoy meeting new people, this could be awesome. If you like your own space and like having your friends over and staying up late, maybe not. It’s not for everyone, but if you can make it work for you for a couple years it can be an incredible option.
The Caveats
First off, you’re letting a stranger into your home. While this can be offset by thoroughly screening the tenant (if you intend to go this route, be sure to take my Educated Landlord Tenant Screening Course), there’s no guarantee you will get along with them.
You could also offset this by renting the room to a friend or family member, but this can open a whole new set of issues. It’s one thing evicting a stranger for non-payment of rent, but it can make family Christmas dinners a tad awkward when you have to kick out cousin Jimmy for the same reason.
Second, you will need to be very familiar with the local rules for renting out space in your home. Do you fit under the local landlord laws, or a subset of the laws? In my region if the landlord lives int he property and shares common space with the tenant like living rooms, kitchens and bathrooms they fit under different legislation which is much more in favor of the landlord.
Knowing the difference can change how and what you can do with problem tenants and this can definitely take stress off of you knowing the law is on your side!
Third, your boundaries may feel restricted. Now it’s not just your space, but common space. If you’re used to just leaving your clothes or dishes lying around, you will be setting the standards for the house.
You can’t expect your tenants to follow the rules you set if you can’t live within the same boundaries.
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I’ll also have some upcoming courses on how to set up a rooming house, run a rooming house and even analyzing a property to see if it works