Most of us don't consider renting out a room in our home when thinking of ways to earn additional income, and it does not suit everybody. In fact, some people buy a home knowing that they'll have roommates to help pay the cost.
When you are thinking about bringing in a tenant, it's important to remember is that it's a business deal. Deciding whether the income is worth the loss of privacy and living space is a potential landlord's first order of business. By comparing rental rates for their area on websites such as Roommates.com and Craigslist, homeowners can estimate their potential rental revenue.
Check with your mortgage provider to see if taking in a renter is within your terms and conditions. Certainly ask your insurance company if you need any additional coverage if you're renting a bedroom. You might not require landlord's insurance, however if, for example, the tenant has a dog that is on the dangerous-dog list and not covered, you need to know what would happen in that case.
Ensure your home meets safety regulations. Smoke alarms and fire extinguishing equipment might need to be fitted.
Do telephone interviews first, to save time in making a shortlist of possible tenants. Arrange face-to-face interviews once you've narrowed the list down, and if you're worried about strangers coming to your house invite a friend to interview with you.
Be sure to specify all the terms in a standard, written rental agreement. There should not be any misunderstandings about expectations of them as a renter or of you as a roommate and landlord.
Check for any criminal background and for their credit rating. These two checks help you know what sort of person the potential tenant is. This also means you should trust your instinct if there is any doubt. Do not rent to anyone you have a negative feeling about. The personality of the applicant is a consideration. Would you be okay with sharing a living space with this person? These are all factors to consider before making your choice.
Just like you do in any family, make house rules. There should be some ground rules regarding dishwashing, garbage collection and other duties. This needs to be spelled out very clearly. If you don't do this, all the chores might fall upon you.
You should be willing to be a little flexible when renting a home in your house as tenants are paying you to live there; a little leniency simply makes the situation more pleasant for everyone.
When you are thinking about bringing in a tenant, it's important to remember is that it's a business deal. Deciding whether the income is worth the loss of privacy and living space is a potential landlord's first order of business. By comparing rental rates for their area on websites such as Roommates.com and Craigslist, homeowners can estimate their potential rental revenue.
Check with your mortgage provider to see if taking in a renter is within your terms and conditions. Certainly ask your insurance company if you need any additional coverage if you're renting a bedroom. You might not require landlord's insurance, however if, for example, the tenant has a dog that is on the dangerous-dog list and not covered, you need to know what would happen in that case.
Ensure your home meets safety regulations. Smoke alarms and fire extinguishing equipment might need to be fitted.
Do telephone interviews first, to save time in making a shortlist of possible tenants. Arrange face-to-face interviews once you've narrowed the list down, and if you're worried about strangers coming to your house invite a friend to interview with you.
Be sure to specify all the terms in a standard, written rental agreement. There should not be any misunderstandings about expectations of them as a renter or of you as a roommate and landlord.
Check for any criminal background and for their credit rating. These two checks help you know what sort of person the potential tenant is. This also means you should trust your instinct if there is any doubt. Do not rent to anyone you have a negative feeling about. The personality of the applicant is a consideration. Would you be okay with sharing a living space with this person? These are all factors to consider before making your choice.
Just like you do in any family, make house rules. There should be some ground rules regarding dishwashing, garbage collection and other duties. This needs to be spelled out very clearly. If you don't do this, all the chores might fall upon you.
You should be willing to be a little flexible when renting a home in your house as tenants are paying you to live there; a little leniency simply makes the situation more pleasant for everyone.
About the Author:
Get great savings here: insurance for your Alberta home and Canada apartment insurance.
Posts
No comments:
Post a Comment