Many homeowners find themselves in a position where they could use some extra income. One option to generate this extra income is to rent out a room in your house. This has its pros and cons, which we will explore below.
There are many factors to consider when deciding whether or not to rent out a room in your house. The following list outlines some of the key points to keep in mind.
PROS:
- Extra Income: Obviously, one of the biggest advantages of renting out a room is the extra income it can provide. This can be especially helpful if you find yourself in a tight financial situation.
- More Engaged Lifestyle: Renting out a room can also help to keep you more active and engaged, as you’ll have someone else around the house to interact with on a daily basis.
- Easier Maintenance/Cleaning: Having a tenant means that you’ll likely have someone to help with things like yard work and general cleaning/upkeep around the house.
- Additional Security: An additional person in the house can also provide a sense of security, both for you and your belongings.
CONS:
- Less Privacy: One of the obvious downsides to renting out a room is that it means giving up some of your privacy. You’ll no longer have exclusive use of certain areas in your house, and will need to be mindful of making too much noise, etc.
- Potential for Damage: Another potential downside is that tenants may not take care of your property as well as you would yourself. There’s always the potential for accidental (or even intentional) damage to be done to your furniture or your home. Best to invest in Mattress Protectors for example.
- Increased Utility Costs: Finally, keep in mind that having a tenant also means increased utility costs, as you’ll now be responsible for covering the cost of things like heat, electricity, and water for two households.
What does the law say?
There are also a few legal considerations to keep in mind before renting out a room in your house. First and foremost, you’ll need to check with your local zoning laws to make sure that it’s actually legal to rent out rooms in your area. And, you’ll want to create a lease agreement that both you and the potential tenant are fine with, while also being fully legal. You’ll also want to be clear about the terms of the rental agreement, and have everything in writing to avoid any potential legal issues down the road.
With the increase of apps like Airbnb, it’s easier than ever to rent out a room in your house. You can register with them to make it more official, or simply rent out a room on your own.
Making the decision
As you can see, there are both pros and cons to renting out a room in your house. Ultimately, the decision of whether or not to do so will come down to your personal circumstances. If you think it’s something that could work for you, then go for it! Just be sure to do your research first and make sure you’re well aware of all the potential risks involved.