Well, there can be more than one ways of adding to your monthly income, but if you are looking for a fixed and definite increase in your earnings and that too without virtually any effort, then Renting out a Room in your house can turn out to be a smart choice for you.
The only requirement being that you need to possess a house and should be willing to rent a room in it.
In the prevailing economic conditions, when prices of items, goods and services are increasing, inflation is on the rise, expenses are increasing sharply, businesses are suffering losses; there is turbulence in the job market, lower salary packages, and together with many other elements then in such circumstances Renting out a Room in Your House can help you in augmenting and supplementing your total monthly income.
In fact, it can turn out to be a fixed and regular income source for you. Renting out a Room in Your House can also help you in meeting your monthly saving goals too.
Let me take a hypothetical example to bring out the importance and benefit of Renting out a Room in Your House. Suppose that Billy who is an employee in a reputed firm has met with a serious accident which requires a post-hospitalization and medication of six months. In these six months, Billy would not be able to go to work and, so his earnings suffer. Now, to meet his living cost and other medical expenses, he can opt for Renting out a Room in his House. Doing this he can ensure that he is able to provide for his survival and as well as can pay the utility expenses which happen each month.
So Renting out a Room in Your House can prove to be a vital source of income for you.
In this context, it is also very important to make the whole process of renting a room in your house absolutely safe and secure. You would invariably like to reap the maximum benefit from renting a room in your house. For this to happen, you need to follow a certain procedure which ensures that you actually benefit rather than suffer by renting a room in your house.
Here, we have enumerated certain important points which you should consider while renting a room in your house.
Firstly, you need to identify the room or rooms which you want to put up for rent. Here, it is pretty obvious that if you are looking for a bigger rent amount, then the room you should put on rent should be relatively bigger than other rooms in your house. Rooms with private bathroom or basement apartments (if you have one) are really a good option to consider giving on rent. You can even explore the option of shifting to a smaller room and giving your master suite on rent.
Secondly, you need to be aware of the rental charges prevailing in your area so that you know what amount of rent you would get for the room which you will put on rent. For this, you can check your local newspaper or can even checkout websites which provide details of rent based on local rates and zip codes.
Thirdly, you need to advertise for renting a room in your house. You can place the Ad in local newspaper(s) or can even advertise online through various websites. You need to give the details clearly and can also supplement the text with pictures. You need to mention the rent, terms and conditions and also who all you would like to have as tenants. For example, some landlords prefer to have college students and some prefer only female renters.
Fourthly, you have to make the final selection of the tenant. For this, you can take personal interview of each of the applicant. You should ask about their living habits and seek employment or student status. You can ask for some references and should call them. You should tell your terms and conditions and what you expect from your tenants.
Once you complete the selection process, and select a tenant of your choice, you can further go for credit and background check. If everything goes well, you can then have a rental agreement with your tenant. You need to explicitly list down the living arrangements, other terms and conditions and explain it to the tenant so that he or she is fully aware and understands what all is to be done and what isn’t.
For example, would you like to take a security deposit from the tenant? Would you go for a flat monthly rent fees, or would also like to take the payments for the utilities used by the tenant? Then, what about the common access areas and numerous other things, as well. Everything needs to be well sorted out before the tenant moves in to your house.
Following the above points would greatly ease the process of renting out a room in your house. You would get to have adequate monthly rental charge from your tenant and probably would face no problem from the tenant that you have selected.
Having said that, you have to take the final call whether you would like to sacrifice your privacy for the extra income you have in the form of monthly rents. Whether you would be fine in sharing your kitchen or bathroom? However, if you are an empty nester or living alone then having a tenant can serve as an advantage as your tenant would be able to look after your house when you go out of town.
So, remember that ultimately it is you who have to say yes to renting out a room in your house.