Renting out the spare room is a great way to subsidize your family budget. You may also choose to rent an entire property to several tenants. That is a great way to increase your home value – especially if you treat it as an investment. Here are some useful tips to help you get the most out of the experience.
1. Agree On House Rules
Sharing your home with people you don’t know is not easy. Everybody has their own tastes and opinions. For this reason, it’s necessary to have a clear idea of what the house rules are.
The most important aspects include noise, cleaning, and shared areas. You may also have rules about things like the fridge or kitchen cabinet space. Home maintenance is another area to be aware of. You don’t have to have them written down but it helps to discuss these issues.
2. Interview Potential Tenants
Even if you are strapped for cash, don’t rush into renting out your property. Make sure you interview potential tenants. An initial conversation will help you decide if they are the right people for your home. Get to know them before you make a commitment. You could avoid a lot of serious trouble that way.
3. Check with Local Authorities
In certain situations, you may not be allowed to rent out parts of your home. Find out what the laws are where you live. Besides, confirm that there are no restrictions in your own mortgage/tenancy agreement.
4. Be Flexible
Every now and then there will be some conflict. That’s something you can’t avoid. To ensure that everyone enjoys a good living experience, be patient and flexible. In most cases, it’s possible to resolve conflict without offending anyone.
5. Respect Your Tenants
Similar to the point above, it’s important that you have respect for your tenants. It’s very common to create resentment if you act like you have authority over them. Remember, they are paying you so they can have a safe place to live. It’s your duty to ensure they’re comfortable.
6. Be Clear on Rent Collection
Before your tenants move in, be clear on how the rent will be collected. Agree on how often the rent will be paid as well as what the amount will be. It’s usually best to establish how you want to be paid. Your options include bank transfer, cash, or whatever your preferred payment method is.
7. Try a Short Term Solution First
If you have never done this before, you may wish to try a short term let first. This could be a period of 3 – 6 months. You will then have a clearer picture of whether room share is a viable option for you.
8. Speak to Other Landlords
You may also benefit from speaking to other landlords about their experiences. There are many online forums that will shed some light on how things work. You will also be able to any questions you may have.
9. Find Out What Taxes You’ll Have to Pay
Since rent is considered as income, you’ll most likely have to pay tax. Find out what the specifics are for your situation. Also, put some of the rent money aside for the purpose of paying tax.
10. Never Stop Learning
Room share is a great way to meet exciting and interesting people. You will also learn a lot about renting property and business in general. Enjoy the process and never stop learning!