Have you considered renting out your spare room for extra cash? The idea seems like a no-brainer if you have abundant space that isn’t being used. But, before you start advertising your room for rent there are some points to be considered. Here are five tips to consider in order to successfully rent out your room for extra cash:
Ensure you’re allowed to rent a room out. This seems obvious, but if you are a renter you will need to check with your landlord first. Often times, subleasing is not an option in your rental agreement.
Do your due diligence. Once you know you can rent out your room it’s time to do your research. Every location, house type and room style will be priced differently and it’s important you do not put a price tag too high or too low on your room. Check local real estate sites in your area to see what the average rental room costs.
Consider additional costs. There are more costs to take into account when renting out a room. What else would you want to charge your new room tenant? Utility costs, cable and internet and whether the room will be furnished or not are points to factor into the room cost.
Be selective. Always interview potential renters, even if you might be eager to up your monthly income. Taking the first person who shows interest in your room might be detrimental. Consider even looking into their background such as credit scores, criminal history, current employment and possibly even other rental references.
Set rules. After a successful interview process, it’s important to set boundaries from the beginning. This will avoid negative interactions in the future. Keep in mind how the cleaning and food will be share, what kind of guidelines are set in place for having people over or late night parties and how costs like toilet paper and dish soap will be divided.
Okay – now start with our first tip and begin renting out your spare room for extra cash!