Leasing a room in your house is an increasingly attractive option in the current economy. Though it may be tempting to simply post an ad and wait for a reply, you have to consider the legal (and lifestyle) changes. If you’re interested in renting out one of your rooms, here are some tips to get you started.
Know the Law
Your ability to freely rent out space in your house varies from state to state, so make sure you familiarize yourself with the proper legislature. Also be aware of the law regarding your tenant’s rights and your rights as a landlord (for example, find out what constitutes “reasonable notice” and adhere to it).
Prepare the Documents
Have a rental agreement ready before you advertise. If you establish your actions’ legality from the beginning, you will minimize future problems with tenant behavior.
The following are some important things to mention in your agreement:
- Lease period
- Rate
- Tenant obligations and legal repercussions of noncompliance
- Criteria for eviction
Perform a Background Check
Several sites allow you to view a client’s record of arrest and eviction for less than $10. An online service for landlords called Cozy does all the above for free but requires a profile and more general set-up before you can take advantage of its services.
You can’t get to know someone simply by seeing their credit scores and legal history, but it’s a start.
Once you have a prospective tenant, meet with them and get to know them. Especially if you have a family, you’ll want to make sure that your model of behavior and theirs will mesh.
Establish a Set of Rules
You have every right to moderate your tenant’s behavior insofar as it affects your lifestyle, so if you are uncomfortable with smoking, drinking, pets, or other potentially obtrusive behaviors, be firm and up-front.
If you’ve cleared all the legal and personal criteria and you’d like to rent out a room in your house, give Keyrenter Real Estate a call today at (801)-566-6700!