If you don’t know what to do with the spare room in your house, why not profit from it? Renting out is a good idea, especially when you’re looking to make some extra cash.
However, it may be challenging for homeowners to act as a landlord. Here are a few tips to help you rent out a part of your home with ease:
You will be sharing your house with an outsider. Sometimes that means having to share a space with someone who doesn’t know the rules and regulations in your home.
If you plan on interviewing potential tenants, give them a proper rundown of the house rules. You do not have to post signs on doors and hallways to make sure that the tenant knows the rules. You can tell them the basics while giving them a tour inside your home. Make sure to inform them of off-limits areas if there are any.
The potential tenant must accept all these rules before you take them in.
Make a Written Agreement
People often forget verbal agreements, which is why you must make an official document to seal the renting deal. You may provide them with a written lease, which includes the amount they have to pay and the due date.
You must also add rules regarding deposits, pet policies, and penalties for late dues. You must make sure that your lease complies with the renting rules of your state to avoid any problems. A written agreement will assure homeowners that tenants will be on their best behavior while inside the premises.
Get to Know Your Tenant
You may get a glimpse of what it’s like to rent out a room when letting a guest stay over. However, this time, you’re sharing a house with a stranger. Get to know your tenant before giving them the keys to the house.
If you think a potential tenant might pose a threat to you, your loved ones or your pets, don’t hesitate to reject their application. A formal background check will be helpful, although not necessary.
Hire an Attorney
You might have disputes or issues with your tenant while they are on your property. To avoid conflicts from getting out of hand, you must have an experienced property lawyer with you. An attorney can help you straighten out your issues with your tenant in a way that can be favourable to both parties.
If the tenant violates a rule in your lease agreement, you must seek the help of the attorney instead of resorting to aggressive confrontation or physical violence.
Renting a part of your house is a good way to generate passive income that can help with home maintenance expenses, among other needs. However, above all else, you must be prepared. Make sure you have thoroughly and meticulously screened all applicants before coming to a decision and have a legal professional around when conflicts arise. Following these steps, you’re one step closer to your goal of becoming a landlord.