RSS Feeds
Facebook
Twitter
Ask the Readers: How to Rent Out Your Spare Room? Print
Friday, 30th January 2009 (by J.D.)This article is about Ask the Readers, Entrepreneurship, House and Home
Last month, Alison from Diamond-Cut Life shared a guest post about providing lodging to a housemate in exchange for work (instead of rent). Her story prompted a number of readers to ask about the mechanics and practicalities of actually renting an extra room to generate income. For example, Penny wrote with the following:
In August, my brother-in-law moved in with us. By December, he couldn’t find a job, so moved back out. While I had mixed emotions about his leaving, I did lament losing the potential income, because I thought my husband would never agree to renting a room to a stranger. Imagine my surprise when I mentioned the idea and he agreed to it.
I need some advice as to some things we should consider when finding a renter.
- What would be the best way to charge for rent? Flat monthly rate with utilities included? Weekly rate plus a third of the utilities? In our immediate area, rooms rent for $485-500 with utilities, or $125/week plus a portion of the utilities. I’m torn between the two modes.
- What sort of keywords should I put in the advertisement that would help find the right fit?
- How would food work? I don’t mind cooking for everyone; in fact, I love it, but I don’t want to pay for all of their board.
- Any other suggestions? Am I being too specific?
Our situation is a bit unusual, because we’re sort of urban homesteaders. We have gardens all over our small yard. We don’t use the dryer or the air conditioner. We use wood heat in the winter. Our family hunts and fishes. Will these things matter?
I’m curious about this, too. I don’t know anyone who has ever rented out a room, so I don’t know the process — and I don’t know if the income is worth the hassle. I do have friends, though, who have been on the other side, who have rented rooms from people in Penny’s position. During college, for example, my friend Andrew rented a room in a converted garage. But although the garage was attached to the house, but he didn’t interact much with the family he rented from.
If I were doing this, I’d check with my lawyer and accountant to be sure I was fulfilling my legal obligations, as well as protecting myself from possible problems.
I’d love to hear anecdotes from other readers. Have you ever rented out a spare room? Or have you ever been on the other side? Have you ever rented somebody else’s spare room? What did you learn from the experience? What advice would you give to somebody who was hoping to generate a little income by renting out space in their home, garage, or attic? And, finally, do you have any specific advice for Penny?
January 30th, 2009 at 5:26 am
People used to pay for room and board - they paid for their food, and the landlady did the cooking. Whole families lived in boardinghouses in the nineteenth century.
Penny might get a good tenant if she advertises in alternative or student publications. Or maybe a roommate matching service could help? (This sounds like an area the roommate services need to get into!)
January 30th, 2009 at 5:31 am
Wow, I was surprised to see this article. We have a spare guest room/bathroom and I’ve thought of renting it out from time to time as well, but wasn’t sure where to start. I have the same questions as Penny, and look forward to reading any advice your readers have to offer!
January 30th, 2009 at 5:43 am
When I was single, I rented out a floor of my house. (We each had two rooms & bathroom to ourselves, shared a living room, dining room & kitchen.) I made a strategic decision to charge below-market rent so I’d have my pick of roommates.
I told everyone I knew I was looking for a roommate, and that is how we found each other. She was a friend of a friend.
The one thing I wished I’d done differently was to have her agree to change her cat’s litterbox regularly. She was gone for days at a time and the litterbox would overflow.
January 30th, 2009 at 5:53 am
For a couple years, I rented a house and basically sublet out two bedrooms to housemates.
This was not a good situation, for several reasons that probably wouldn’t apply to others. I would *never* again rent a place with the idea of getting roommates. I also learned that I value my privacy more than I had realized, and wouldn’t want to take in a border at my house unless finances were really really tight. (And I was lucky that my two roommates only stayed there maybe four nights a week — I often had the place to myself.)
If times did get tight enough, I would consider renting out a room of my house. I would structure it this way:
* A fixed amount of rent per month.
* Tenant gets shared use of common areas.
* Make sure there is some basement/attic-type storage available to tenants.
* Tenants responsible for own food, but informally-shared condiments, milk, coffee, etc.
* Tenants must help with housecleaning, and clean up their own dishes.
Things to be aware of:
* Make sure parking isn’t an issue.
* Utility expenses might go up. For example, I keep my heat down to 60, and turn it up to 65 for the few hours a day that I’m home and awake. If I had housemates, I’d probably need to keep it warmer for longer periods of time. Tenants might have window air conditioners.
* Be aware of bathroom scheduling.
* You might need to keep the common areas of your house cleaner than you would living on your own.
* I would make sure you have a private area of your home to “chill out” in. If your bedroom is big enough, then maybe thats adequate. Ideally you probably want a couch and a TV (or whatever) either in your bedroom or in some other private room.
* Your tenants will expect to have included use of cable TV, ideally with outlets in the bedrooms, and wireless internet access.
January 30th, 2009 at 5:57 am
It’s good you are actually thinking this through. To answer the individual questions, I’d start off just including the utilities if you have a good handle on what they run.
For the food, I think you may be assuming too much. Do you really want the roommate at every meal, all the time? Something that starts out novel and fun soon turns into a chore.
I also wouldn’t expect to find someone who is necessarily going to fit into your “urban homesteader” plan. If you do, great. But make the decision now if them not participating in your hobby is OK or not.
I’ve seen one situation get “weird” when a friend helped out another friend by renting them a room at a low price to help them out in a rough patch, and the renter didn’t pitch in around the house. Tread carefully and know what you are getting into. A rental of “Pacific Heights” might be in order.
January 30th, 2009 at 5:58 am
I rent a bedroom in a woman’s home. We found each other through Craigslist ads- this is a really good place to find a room or a renter if it’s popular in your area. Otherwise, I’d use whatever other classifieds are popular. Craigslist is free, so ads can be much more detailed than in a newspaper or other paid ad service.
Because different people have different habits, I think charging shared utilities is best- that way they have incentive to keep costs down.
Based on what I know from the post, I would word the ad like this:
Need a place to call home? We are looking for someone to rent a 9′x12′ bedroom in our two-story house located near Birch St. and River Drive. It’s a great place to live: close to [university, downtown, shopping, hiking, etc, pick two or so]. Our family loves hunting and fishing, and we also like to live “naturally-” we garden, line dry our clothes, and use wood heat in the winter. Rent would be $500/month plus 1/3 of the utilities (power, trash, and cable), which is usually about $40. I love to cook, and for just $60 more, you can share three meals a day with me and my husband. Call Penny at (222) 222-2222 to see this great room!
January 30th, 2009 at 5:59 am
IF YOU’RE RENTING AT A FLAT RATE, I suggest learn as much about your tenant’s daily habits as possible. You know your utilities will change, but by how much? My example:
I had a friend-of-a-friend living with me for most of last year. I rented a room in my house for a flat rate. I expected my utilities to change, but I wasn’t sure by how much. He didn’t shower often, but his GF made up for it by taking LONG showers if she was at the house. He didn’t leave the lights in the house on, but his computer, printer, speakers, etc were ALWAYS on. He worked from home, so he often changed the thermostat settings on a whim.
If I had it to do over again, I would have charged him a lower rate and a portion of the utilities to help keep his poor habits in check.
January 30th, 2009 at 5:59 am
We have a bit different situation as we own a side by side duplex that is designed to rent out one side. It still somewhat applies as we do share the yard and garage.
The key to success is being upfront with everything. It seems weird to put somethings into a lease but if they aren’t there you have no grounds to stand on should something happen.
The nice part about an owner occupied space is that you can be a little more picky about who you rent to. The law gives more flexibility.
HollyP is right if you can get someone word of mouth that is the best. At least you know someone who knows the person, kind of a personal reference. It seems less risky although in the end it maybe it isn’t
January 30th, 2009 at 6:00 am
My mum rents out a room in her place.
Rent: She charges a flat weekly rate with utilities included.
Food: She will include them in the meal if she gets a heads up. By default she assumes they won’t be eating in. She charges $10 for each meal. It’s good home cooked food so $10 is a good deal for what you get.
The renter has their own room and bathroom. They’re responsible for keeping both clean including their own laundry.
Seems to work out for everyone.
Cheers,
Gwynn
January 30th, 2009 at 6:07 am
I would also do a background check. Where I live the police will do it for about ten dollars. I think that this could be a good situation, but there is also a lot that could cause problems–some minor, but some major.
January 30th, 2009 at 6:09 am
We did this with my sister, where the situation was a little different because she was family. The going rate for a 1 BR apt around here is ~350-400. We charged her $350 but included food and utilities.
Here’s what I would do:
Charge monthly and include utilities in the rate you advertize. That way it’s a more simple transaction (and less often than weekly) and you don’t need to calculate anything. I would just estimate your higest utility bill and add on ~60% of that to your rent. “Lease terms negotiable” will let them know that you’re willing to prorate if they leave in the middle of the month or something.
Advertize the rate without board costs but then when you select someone, ask about their food preferences and see whether they would be interested in eating with you (maybe have them over for dinner as an “interview”). If they are, figure out what to charge them and make it clear what the cost will include. Maybe they eat dinner with you but they are responsible for their own breakfast, lunch, and snacks. Even if they say no to the food, I would factor in a buffer of ~$20 a month (to the rate that you advertize) because they will probably eat with you sometimes or borrow some milk, etc.
I would ask around to friends who have similar lifestyles if they know anyone or put up fliers at a college targeting their “green living” club or “college democrats,” maybe even try to contact the leaders of these groups. Although I would consider factoring in extra utility costs and allow them to use your dryer (if you have one) if they want to.
January 30th, 2009 at 6:13 am
I bought a house that I could afford without roommates, but it came with so much space and extra bathrooms that I decided to try it out. It’s not a big deal to me as a single guy. So far every person that has every rented from me has been a friend or friend of a friend. I write a long letter outlining what will and won’t be expected of them and what they can expect from me. They have to agree to that. Make a very clear deadline for rent payments. I like rolling utilities into rent, but be sure to estimate a significant increase in those bills.
My situation works because my roommates quite amicably share a bathroom (and there’s a third half bath) and have their own bedrooms and a low use dining room and family room so we can all spread out. But they have TVs and/or computers in their rooms so it’s “their little world.” But they’ll join me in my living room or ask to play video games. Every house, situation and person is unique though. I consider myself extremely important.
The things I’ll stress are getting everything agreed upon up front. If you think they should be taking out the trash every other week, you better make sure they know that and agree to it. If you can’t stand when people leave dishes on the counter tops, mention it! And remember, some little things may annoy you that you might not think of. Will they be a huge burden on you or just something you can shrug off while enjoying the additional income?
January 30th, 2009 at 6:15 am
We rent 3 rooms in our home and have been doing so for over 2 years. We’re a bit like Penny in regards to urban homesteaders. Here are the items I would recommend:
- No pets. More problems than good.
- We charge by the week or month a flat rate. It makes things easier in the long run instead of arguing over how much electricity they used.
- Expect them to leave lights on and use window air conditioner, so include that in your monthly rate.
- We keep food out of the rent, but sometimes we’ll offer to share a meal out of goodwill. We have one separate fridge and pantry space setup for all the roommates to share.
- Cable TV not required (we just got it this month).
- Craigslist has been my main source of tenants
- Month to month works best, since it gives both parties flexibility if it does not work out.
- We get cheap furniture from yard sales and offer the rooms furnished or unfurnished. This helps a lot of people.
- Regarding wording, the key items are make sure you don’t put anything discriminatory and explain what is included/not included.
- Make sure you are clear on your eviction procedure when they move in and are within the laws of your state. Don’t stray from your procedure
- Make 1 person the landlord that handles all issues and payments. You don’t need them acting like children and playing 1 spouse off another.
At $400/month in my area, it is worth the hassle for $1200/month and my wife to be able to be a stay-at-home mom.
January 30th, 2009 at 6:32 am
I think this is the first time i’ve ever responded on this group. I am a bit of a financial nut. I have always bought bigger homes than i need and then rent out the addl rooms as ‘income’. My last house was 6 br/4ba. I only used two bedrooms and i put in a master bath for our exclusive use. I rented 4 bedrooms and that income alone paid my entire mortgage. I also try to have only two people max share a bathroom. Of course I had utilities to deal with but it was a small price to pay in comparison.
I have had some DOOZIES as roommates, but i’ve also had some great ones I always wished would move with me. Some have been so good that i even offered free rent when they lost their job just to keep them there when they found employment.
I always charge a flat rate and share my WiFi, Cable, Util etc. I don’t want that argument of me telling roommate to turn off lights to save $, and they say well your PC runs 24/7. I pay all utilities PERIOD. I explain up front the way i keep MY house. I control the thermostat, NOT THEM. I expect there to NEVER be dishes in the sink. If you see something out of place, pick it up etc. I have my ways and as long as you agree we all get along harmoniously.
I have been fortunate enough to always live near universities, GRAD students are the best! But they do leave eventually. I had one grad student that worked so much he slept in the lab most nights and I was usually gone to work (IF)when he came home to shower the next day. We didn’t see each other but a few times in passing the entire time he lived w/ us.
Retail workers or people with two jobs is another great roommate. They are almost never home when you are. And they treasure what little free time they have that they don’t spend it in your home.
I always remind them they are renting a room and i expect them to be courteous to everyone else in the house by picking up after themselves, cleaning their dishes, etc. However when I post the ad, i explain AS MUCH AS POSSIBLE about the living situation and expectations OF THEM. If they aren’t up to the task of being a good citizen they generally won’t respond to my ad in the first place. I ALWAYS include the word conscientious in my ad. That is a MUST.
I advertise lower rent than any other rooms for rent in the area so as to steer as much traffic to my ad and then I can weed out those that aren’t a fit for the household.
I take responsibility for keeping the common areas clean but they keep their bedroom and bathroom clean.
All in all it’s been great renting rooms. I love getting a ‘refund’(rent) after i pay my mortgage. It can be hard when there is tension but i’m a no BS kinda guy so if there is something bothering me I’ll say it to clear the air. It’s also hard renting to college students that have never been away from home. Sometimes it’s nice to have them look up to you like parents, You feel like you still have a chance to shape them into good citizens, but other times it is hard when their parents didn’t teach or prepare them for the real world.
Sorry for the rambling, but i think renting a room is the way to go!
January 30th, 2009 at 6:33 am
Ooh, finally something I can chime in about. I’m a homeowner who has been renting out a couple rooms for the past 3 year, so I’ve had some experience with this.
It’s good that you ask these questions ahead of time, because it will help you figure out and be aware of some things that will work to your advantage on taxes.
First of all, my roommates and I all have access to the whole house with the exception of our respective bedrooms. Thus, when I have 1 roommate (2 occupants) for the full year, my house is 50% rented, 3 occupants = 2/3 (66%) rented. 2 occupants for half the year and 1 occupant the other half = 25% rented. This is important to figure out ahead of time because it is a critical part of the schedule E that you have to fill out when you do your taxes (assuming you’re a U.S. Landlord).
Secondly, I composed a renters agreement that states my expectations for behavior in the house. This was tedious, but I’ve had people decide not to room with me because my expectations are too high. This wasn’t an official lease agreement, but it is something to point to if an issue comes up (domestic or legal).
For rent, I charge the full month’s rent and utilities at the beginning of the month with utilities based on the last month’s bill. The renter’s agreement also states that I must be given one month’s notice before a roommate moves out and that they must pay through that time frame regardless of whether they are there. Many landlords charge a deposit in case they need to use some of it to cover instances where the renter moves out early, but I do not since I know the people I rent to.
In regards to Utilities, I charge my roommates a fraction of the total utility cost based on the number of occupants. In your case I would charge them 1/3 of the overall utilities. One thing to be aware of, though — it turns out the government makes you include all incomes from tenants (including utilities) as income on your schedule E. You can’t just call it reimbursement. The total utilities then are also included as rental expenses. Oddly enough, it doesn’t fully come out in the wash. I tried both scenarios in Turbo Tax and it turns out I’m getting less money back by including the utilities in my income, but that’s the way it has to be (unless anyone can tell me another way to do it).
For food, I’ve found that it just works best to designate a cupboard and freezer/fridge shelf for each of my roommates to keep their food. We share perishable goods such as bread, fruit, and milk and try to rotate who purchases those items, but most everything else is “buy it for yourself”. I do let them use my kitchen goods (plates, pans, etc) because I have a well-stocked kitchen in that respect.
Lastly (I’ll get to advertising in a minute), because you’re renting out part of your own home it is legally okay to be picky about who you rent to. In the fair housing act this is nicknamed the Mrs. Murphy exemption. The absolute moral implications of this exemption are debatable, but overall I think its a good idea — you shouldn’t be forced to rent to someone you hate, even if your hate is wrong. It will just cause to much unrest. Still, the FHA says that you can’t use discriminatory advertising, so watch what you say in the official ad. I once used words like “would prefer” or have also described myself as “religious” in the ad. Smart renters will know to avoid people that have qualities with which they will clash.
Lastly, two resources to check out: Turbo Tax’s rental property page:
http://turbotax.intuit.com/tax-tools/tax-tips/investments-and-rental-property/5568.html
And a book recommended by a fellow landlord regarding renting and taxes (it’s that time of year):
http://www.amazon.com/Every-Landlords-Tax-Deduction-Guide/dp/1413309062/ref=sr_1_1?ie=UTF8&s=books&qid=1233325809&sr=1-1
January 30th, 2009 at 6:36 am
OH and I always tell them they are responsible for their own food. I even give them their dedicated space in a pantry or cabinet and the main fridge. I also put dorm fridges in the rooms for drinks. That keeps them from taking mine and vice versa.
But I do say that I will share what I have, and they are welcome to it, IF THEY ASK first, but to always replace what they take and NEVER take the last of something.
I also love to cook large meals so If i’m in the mood to cook large, i always make enough for everyone and invite them to share but if they don’t partake, it’s leftovers for me.
otherwise they are on their own.
January 30th, 2009 at 6:38 am
Darn sorry… I keep remembering things.
ALWAYS put agreement in writing. Even though technically it’s your home and you can kick them out easily, it’s just better to back yourself up with documentation.
AND NEVER rent to friends or family!
January 30th, 2009 at 6:40 am
I had great luck using Craigslist for roommates when I lived in LA. I decided to get a 2 bed/2 bath apartment I could afford on my own, and then rent out the other bed/bath.
I was afraid of identity theft, so before I got a roommate, I:
* got my mail sent to a PO box
* changed my bedroom doorknob to one that locked with a key (easy to do, knobs sold at Home Depot)
* got a lockbox and locking file cabinet to keep my important documents in
Rent/Utilities
With the first roommate I had, I charged her a flat fee for rent and then we would split utilities. This was a pain because the utility bills come at all different times of the month, and it didn’t work out that well. With my next roommates, I guessed at an average utility (taking into account summer being way more expensive than winter) and charged them a flat monthly fee.
No pets - this solves a lot of potential problems.
And then, as far as selecting them, I would place an ad in Craigslist, interview the most promising candidates, and trust my gut as to whether they seemed like a good person or not. I also said I was not willing to take anyone who was an actor or otherwise in the entertainment profession - real day jobs only.
January 30th, 2009 at 6:42 am
I rent a room, as do two other people, in my landlord and landlady’s house. We’re charged 1/5 of the monthly utilities, plus a flat monthly fee. The lists above are quite good, but other things you might want to consider are:
- Guests: Can they throw a party in your house, or have their significant other over for days on end? If not, make that clear.
- Noise: Can they blare music at 2:00am? Is there a time after which you’d appreciate it if they weren’t practicing for a night out at the karaoke bar?
- Smoking: Do they? If so, are they willing to do so only outside?
January 30th, 2009 at 6:44 am
When I moved out of my parents’ house, I moved into a roommate situation where I had one of three bedrooms, the owner another, and one more roommate in each of the other bedrooms.
It worked out fairly harmoniously. Each of the non-owner roommates paid a fixed amount of rent + utilities each month (budget plan). I thought I had paid a security deposit, but it turned out to be last month’s rent. It would probably be a good idea to have a security deposit, as well as a written agreement on house rules (smoking, pets, overnight guests, political signs in windows, locking doors all the time, security procedures etc.)
Before taking on roommates, the owner had taken the landlord class through our municipality; that would be a great thing to do also. Also, every new roommate had to “audition” with all of the existing roommates before an agreement would be made.
Sometimes we would cook and eat together, most of the time not. At some points we had designated spots for our kitchen items and fridge items. None of us wanted cable TV; we did split the cost of a DSL line.
All of us were pretty eco-conscious and accepted the thermostat in the low 60s in winter. One roommate from a more southerly area had a space heater; the owner helped subsidize a more efficient one as well as other efficiencies for each of us.
When I had a window air conditioner, I used the Kil-A-Wat to calculate my usage and added an extra $20 to my rent at the end of summer.
Sharing water (i.e. showers, laundry) was never too major of a problem. It helped that we had a second shower in the basement and could hang clothes in the backyard.
We shared the living room and dining room fairly equitably as well. Negotiating TV time is less of an issue if you each have your own DVD-playing computer.
In the end, the only issue was that of organizing / clutter and chores. The chore rule was “whoever notices first.” I have ADD and was nearly always the last to notice and consequently did not contribute as much. I asked the roommates to create a written schedule with me. “Great! We’ll put it in this drawer.” No dice for someone who needs visual reminders. I think I was just a poor match for the others in that respect.
January 30th, 2009 at 6:47 am
If you’re aiming for a student, try “mature” or “graduate” students only. That sends the message that your home is not going to be party central, and the students will be grateful to find a quiet place to live and work.
“Young professionals” also gets the same message across.
January 30th, 2009 at 6:52 am
good points shuchong:
some of my house rules are NO SMOKING indoors PERIOD by anyone. I have allowed outdoor smokers in the past but one recent roommie used to REEK of smoke all the time. It was so disgusting to me and when the HVAC would kick on i could smell the smoke from his clothes in his room throughout the house. So smokers on a case by case basis. It’s more about the person.
If you come in late, please remember other people live there.
My house is NOT a party house but with notice they are welcome to host small gatherings for the game, special events etc.
I allow overnight guests, IF I MEET THEM FIRST. I do not want strangers in my home that I am not aware of. But if they are dating, a significant other is welcome to spend the night in moderation w/out permission (once i’ve met them).
January 30th, 2009 at 6:54 am
We rented out a spare room to both family and friend before, so we were somewhat lax as to dictating rules. Which was nice because you then aren’t some whiny ranting dictator, but on the other hand too they then can easily abuse it. We just did a verbal agreement, I would not recommend that because who’s going to remember little agreed upon details in that way? Go with a signed document with both parties have a copy of, so if there’s any disputes just whip that out and there’s the tie breaker.
We just charged a flat rate with utilities included. Trying to split a bill evenly, or like mentioned above, if someone has a habit of leaving lights/AC/etc on, trying to ‘guess’ that they used 60% of the electricity while you only used 40% is a hassle. Put in writing that they agree to help save power by turning of lights, etc as much as one reasonably can. People forget, so don’t fly off the handle or take it personally when they forget to turn it off.
While I certainly do miss the extra $300 ($600 split in half) I got a month. By the time you spend the money on the extra consumption from water/power/heat, I wasn’t left with much for all the hassles of dealing with it all. If you come home late from work and you want to just sit on the couch and watch a movie, but you can’t because the other person is on there. The extra $100/month in profit doesn’t seem worth it then.
I don’t miss having tenants, I like having the house to myself and my gal.
January 30th, 2009 at 6:55 am
I’ve been renting out a room in a house for about a year, and my landlord charges me a flat fee for rent, utilities, and 3 meals a day (I work from home). While some people have recommended rolling the utilities into rent, you may want to have some leeway depending their usage - for example, instead of $500 inc. utilities, you might want to consider $400/mo + $50 - $200 depending on usage (use the prices in your area, obviously). Offer to have it start at the low end, and then adjust it after a You can still have them roll it into the rent payment, but you’ll have some flexibility in charging. That way if your tenant likes long showers or has 3 computers or likes to run a space heater or AC unit 24/7, you’ll have some sort of control over that, but it won’t have the hassle that splitting utilities brings (bills at different times, checks for weird amounts like $11.20 that you have to make a trip to the bank to cash, etc).
Also, for food, I would give yourself as much flexibility as possible. I know that sometimes my landlord simply doesn’t want to cook, or he wants to go out to dinner with his family, or something like that, but because the cost of board is included in my rent, he feels obligated to provide meals for me, which can lead to resentment over time. I’m not sure what the best solution to this problem is, but it’s something to consider. (This issue is what’s actually caused my landlord to not renew my lease, so don’t take it lightly.)
And to echo what everyone else has said: Craigslist is your best friend!
January 30th, 2009 at 6:55 am
As far as water, we have well, so the only issue is heating oil, though that is also something that I wouldn’t have considered.
Nitpicking at first would probably make everything clear to all parties involved. I like the idea of having a dinner “interview.”
Keep the tips coming! I’m taking notes!
Pets: We have three cats, two dogs, and nine ducks, so I don’t think there is any room for animals.
January 30th, 2009 at 6:56 am
I don’t know why, but as a person who rents, reading this kind of post makes me cringe a bit. I’ve been in situations where someone is renting out a room in their house and they are *not* clear with their expectations beforehand and so I am prompted to write a bit of a response to the article.. .
I would caution someone before committing to renting out a space - how flexible are you really when it comes to other people and their schedules? And how willing are you to have space available for people to cook/ lounge/ park/ wash their clothes, etc?
I think a big thing, from a renter’s perspective, for someone to consider is that this is a *person* who will be renting your place and that person would like to have some of their freedoms… they aren’t just a $$ in your bank account. I don’t think it is truly fair to expect someone to be completely invisible/inaudible if they are in the same space as you, and I have run into my fair share of folks who are renting their spaces out who think this is a possibility.
So, from that, I would consider what kind of situation you would like to rent in…
A weekly rental to me would signify a more temporary situation, so you would probably be able to stipulate more specifically the types of conditions you expect; but with a monthly renter, I think you might need to be a bit more flexible as that space will be that person’s home.
IF you have a separate entrance, or can make one to that part of the house, I would recommend it.
And re the poster above and “chores” - my brother built his house specifically so he rents out the bottom two levels to renters - and every week he has a cleaning person come in to clean all the rooms - no exceptions. He builds this cost into his rental, and this ‘invasion of privacy’ (!) into his rental agreement, so that his investment (ie his house) maintains its cleanliness. I would strongly suggest this as a way to go especially if you are considering renting out more than one room.
January 30th, 2009 at 6:58 am
Most people do not think about this but you will be required to report the rent on your income taxes.
Your house will be considered a rental property and a portion of your house will have to reported on your Schedule E (passive income) but you will be able to deduct depreciation.
Additionally you will not be able to have rental loss if you live in the home as well.
January 30th, 2009 at 7:01 am
@ liz: thanks for bringing up the renters point of view. I’ve only shared housing with people I was already friends with, so I’m unfamiliar with this type of situation.
January 30th, 2009 at 7:10 am
I rent part of the house that I own to a friend of mine. Although we get along very well, I think what makes it work well for us is that we don’t spend a lot of time together, despite the shared areas of the house. Many of the other ideas and suggestions that have been left here are great, as are the tax reminders, so I won’t rehash.
What I will add is WRITE A LEASE. Putting it in writing, even when it’s a friend or family member, seems like overkill but those legal documents were invented for a very good reason. Use them to protect yourself and the other party.
January 30th, 2009 at 7:12 am
I sublet a room in an apartment once and I’ve known a couple of people that regularly rented rooms out in their houses so I can pass on a little bit of (partially second hand) advice.
Neither landlord offers board it’s just a rooming situation. Both obviously allow use of the kitchen and bathrooms (with rules and schedules), one allows some limited use of the common living room area and the other restricts tenants to their rooms. If you plan to allow laundry room access it’s best to have that on a schedule. Negotiating one day per week that is their day is a good method, some people will have laundry in all the time. One of the landlords I know had a tenent who he swore must have been taking in laundry from her friends the amount she was doing all the time (maybe she was).
I think the most important thing would be to have very clearly established rules for as many things as you can think of. Kitchen curfew is a big one, you probably don’t want to hear pots and pans clanking (or maybe even microwaves beeping) at 2am. If you have fewer bathrooms than people then bathroom timing is important, if you get up and shower at 6:30 every day you can’t very well rent a room to someone with the same requirement.
Be very clear about what is expected as far as cleaning up, both landlords I know insist on dishes being washed immediately as soon as tenants are done eating. One allows certain items to be left in the bathroom with assigned shelving and the other insists that all personal items be brought back to the bedroom - never underestimate the ability of some people to spread out and occupy every available surface with their stuff if allowed to. Any sort of cleaning of common areas that you expect to be done should be spelled out as clearly as possibly before hand. Do you want the bath mat picked up and hung to dry after a shower or the lint screen emptied on the dryer? Make it clear before hand, assume the tenant will do absolutely nothing of their own volition because some will.
Personally I think offering to share anything consumeable is a bad idea unless you are perfectly willing to be the purchaser of the shared products every single time, at least until you know someone and their habits well.
Designate any fridge or cabinet space they are allowed to use. When I sublet that room my cupboards and fridge were constantly packed to capacity to the point that I couldn’t put my own food in.
Establish clear rules about guests and my advice is to limit them or ban them all together. You’re offering a (quite likely very temporary) place to sleep under a roof, not any kind of home. Again, if you have a long term renter that you become friendly with you may want to relax the rules a bit but it’s best to be very clear and fairly restrictive up front I think. There’s no such thing as too many rules up front, the person that is willing to follow them all is the one you want.
January 30th, 2009 at 7:30 am
I have found that by only advertising in online formats, I get a higher level of potential renters.
January 30th, 2009 at 7:31 am
Several years ago my husband rented a room when he was working an outoftown contract. It worked well for him. If I remember correctly, he payed a monthly rent and a flat rate on the utilities.
January 30th, 2009 at 7:33 am
I have been the “house guest” twice. It is expensive living in Boston, and so this was the best choice for singles. In general, if the home owner lives the house, the place is kept in really good shape compared to a rental apartment.
The first time was a disaster. There were multiple guests and the turnover rate was high. My landlord didn’t interview the candidates well and she ended up having a pedophile ex-priest live there with a man who was a former victim.
The second place was a great success. My boyfriend also ended up living with us as a third roommate. We all got along, split the bill three ways for everything.
What made it work though is that my landlord rarely cooked, and so the kitchen was always free for us - PLUS - he was always hanging out at the living room watching TV and we didn’t. If there is enough public space, it will usually work out. I agree with some of the readers that GRAD students are the best. They usually work late at the uni or stay in their room.
The bottom line is - if you treat the other person with respect, they generally would treat you with respect and be considerate as well. If you impose too many rules, then no one will want to live there.
January 30th, 2009 at 7:41 am
For the past 5 months I’ve been renting out a bedroom in my house to a girl in her 20’s. All utilities are included in the monthly rent. She moved in her boyfriend also, so I got a 2-for-1 deal without being consulted! Hmmm….not impressed…
About three months ago, she gave up her job and started going to college by night. That means she’s at home during the day with her student boyfriend and they have the heating is on full blast, when I get home from work the house is like a sauna. My last heating bill nearly bankrupt me! And, because she now has no job, she’re relying on a grant and there are rent arrears and she’s dodging me…. yadda yadda yadda…
What I’ve learned:-
- you will lose your privacy, no matter what kind of arrangement you have with your tenant. You will never again be able to run downstairs in your underpants in the middle of the night to grab a glass of water!! LOL
- carefully vet any prospective tenant, find out why are they leaving their last lodgings, contact that landlord to see if they pay rent on time, are responsible, etc
- schedule laundry days
- schedule morning times in the bathroom
- schedule cooking times
- settle any problems immediately, don’t let issues fester or you’ll resent your tenant
- a certain amount of noise and disruption will be inevitable in the wee hours of the morning
- agree what will happen if your tenant loses their key, are they to be responsible for the cost of changing the locks?
- stipulate that it’s a single occupancy room - no boyfriends or girlfriends or one-night-stands
- get SOMETHING in writing with a 2 week notice period by either party if they/you want to terminate the lease
- rent is to be paid promptly. If it’s due on the 1st of the month, then it’s LATE on the 2nd
Best of luck!
January 30th, 2009 at 7:52 am
My only experience there is when I spent a week in ireland to learn English. There were classes in a school nearby, and I lived in the house with other students, some of which stayed as much as 2 months.
Supper was included in the costs, but lunch wasn’t.
Sadly, I can’t remember how much it was.
I’d suggest deciding exactly what you want to do. If there is a program with foreign students where you live, that might be one of the options, although chances are it won’t (check anyways, if you’re interested). You could also offer bed&breakfast but you don’t seem to want people who would just stay one night.
If you want someone to stay for a while, that would be more like a roommate, it seems to me. If it’s by the week, it might work well for tourists.
Whether you include food or not, you need to be absolutely clear so you don’t have trouble later. You could have a written contract with a set fee per meal per day, or per week, or per month. The tenant could choose while signing whether they want to take advantage of it or not. If they don’t, then they’ll have to take care of their own food.
If they pay for your food and you cook it, you shouldn’t feel bad about asking for a fee for that, too. Whether you enjoy it or not, it’s work as well.
I think that’s as much advice as I can give. Hopefully you’ll find a solution that works for you.
January 30th, 2009 at 7:59 am
My husband and I occasionally rent out a spare bedroom (or both) in our house to college students. He works at a company that hires college kids for the summer, and they have a formal system of listing housing options that other employees are offering. I like having college-aged people living with us (I’m 24, my husband is 27, and we don’t have kids). We charge $500 for a room, and it includes all utilities, satellite TV, and wireless internet.
As far as food, we were friendly with our renters, and would share cheap stuff (i.e. vegetable oil, mustard) and they had room in the fridge (which did get a little tight with 4 adults living in the house) and they had a shelf in the pantry. They were allowed the use of pots/pans/plates/etc. and washed up afterwards. We only rarely had problems with cleanliness.
The big selling point that we had was that our rooms came furnished. The people that lived with us went to college out of state and were working at my husband’s company for 3-9 months at a time. Instead of having to find a short term lease and either move or rent furniture, they could stay with us and not have to bother. We were able to borrow furniture from my parents and buy the rest from Ikea, so it was pretty little outlay–less than $200 to furnish 2 rooms.
We are sort of in a unique situation, but it worked out well for us–our mortgage is about $700/month, so one renter almost covered it, and when we had two, our mortgage was more than paid for
January 30th, 2009 at 8:01 am
Bingo to Comment #4, right on the nose.
January 30th, 2009 at 8:17 am
Put an ad on the bulletin board at the library and grocery store,
Get a standard tenant agreement from a stationery store. Add your own codicil, i.e. re noise, food, utilities, security deposit, guests, pets.
January 30th, 2009 at 8:20 am
The practical advice on setting guidelines with renters is great, but what are the tax ramifications of renting out a room, and can there be any legal issues with homes that are zones as single family dwellings?
January 30th, 2009 at 8:27 am
I have to agree with several other posters and say that Graduate Students make great roomates. Since I own a 3 bedroom house in one of the nations largest cities I have had a easy time finding quality roomates. Some places that may give you some good leads are
-Church/Mosque/Temple
-Clubs or sports teams you participate on
-Friends or Friends of Friends
-Grad Students/Medical Students/Seminary Students
I so far have rented to a Medical Student, a Law Student, and a friend from church. They all had their quirks but overall were nice guys who needed an affordable and clean place to live. I have always charged a flat rate and expected the check on the first of the month. This cut down on the hassle of getting multiple checks on multiple days throughout the month. One tenant even created a scheduled check that was sent from his bank on the first of the month.
The extra income has allowed me to make updates to the house that otherwise would have been out of my budget range like travertine in the bathrooms, the 8 foot privacy fence, and the Wii. Yes I have given up some privacy and yes I have wanted to kill one of them for thinking he could store wrapping paper in the furnace closet, but overall it has been a good experience.
January 30th, 2009 at 8:28 am
I have never considered this because I am concerned about safety- live near a major city and I have a child still at home. I have a friend who did this- her problem has been that she did it on a “handshake” and getting someone evicted here is not easy. The woman is neat and was quiet but often doesn’t pay rent and then had a boyfriend who brought drugs into the house and then kicked in my friend’s door. The boyfriend is sort of gone(he shows up at the door sometimes) but the woman is still there. My friend thinks of the woman as a friend so she didn’t call the police!! I think the background check and the written agreement is a must(and call the police if you need to)
January 30th, 2009 at 8:57 am
I commend those of you that can have roomates/tenants within your own living space.Just the thought of sharing a bathroom with someone I’m not closely related to would drive me to insanity…The smell of some one elses’s …excretions/BO/gases/..Even the lingering smell of toothpaste left in the air immediately after some one brushes their teeth,if it comes from somebody else besides myself would cause me to puke.
Seeing the water splashes on the bathroom sink and counter,and realizing that some one just probably spit into that sink after brushing their teeth…or washed their dirty hands after(hopefuly)wiping their…. or somebody leaves body hair on your shower….and that now you have to use that sink or shower….specially if its still wet….
As you can probably deduce..I don’t use public restrooms or hotels too much..
Just glad I never had to consider having a roomate even as I was having some financial
problems and living by myself in a 4 Bedroom/2 bathroom house.
January 30th, 2009 at 9:01 am
I rented a room in a home straight out of college. From my situation-here are my thoughts:
1) Charge monthly rent and include all utilities except phone, internet and A/C. (A/C is commonly +$25 a month for a window unit.)
2) Define you expectations for use of a common space. Is the living room off limits in the evening or all the time?
3) Make room in your kitchen and define boundaries. A shelf in the fridge and space in the cupboard are a must. Be clear about dishes. Do you want them washed in two hours or loaded into the the dishwasher?
4) Give some thought to other tricky issues. What happens if you have company, if your tenant has company, How long can a guest be over, Are you able to provide washer and dryer access?, Parking?, Pets?
5) Are you comfortable with your tenant house sitting your home for an extended period of time? This was the question that my former landlord asked themselves of their tenants.
6) After all of these posts scare the you to death…please remember that there are good tenants out there who are working hard and trying to make ends meet. I became good friends with my landlords and will forever be grateful to them. I was able to get a start straight out of college without incurring the expense of setting up an apartment on a public servants salary.
January 30th, 2009 at 9:20 am
Absolutely no pets allowed. My sister-in-law moved in with us. While I have a dog myself, I couldn’t stand her dog constantly relieving himself in the house.
January 30th, 2009 at 9:26 am
In my current share, we avoid a lot of potential tension regarding cleanliness by splitting the cost of a cleaning lady twice a month. Worth every penny. Just remember that if you pay them more than $1000/year (unlikely outside of major metro areas) you need to do withholding.
We have a “kitty” to cover shared expenses like paper towels, dish detergent, etc. (and, by special agreement, eggs). When it gets low, we each pay ten bucks or so into it. We share condiments, spices, oils (things a single person probably wouldn’t use up by herself anyway), but other food items are individual.
It works well for us because we’re all adult professionals who just want a low-drama living situation. It may be harder to find people like this in areas where housing is less expensive and so you don’t find women in their thirties still sharing.
January 30th, 2009 at 9:34 am
These are all really good suggestions. I definitely agree with talking with a real estate lawyer and a cpa about the legal and tax ramifications respectively. I would also have them sign a Lease and have the rules and such attached to that document. I would most definitely do a background check if you are welcoming a stranger into your home, but have them pay for it as part of the application process and sign a document that they agree to allow you do the check. However, I wouldn’t just have the local police do the check - they can only check the local databases. There are companies out there possibly locally in your area that can do background checks for $25 or $30 that will be able check all databases throughout the U.S. I also strongly suggest contacting your local real estate investment club. They are a wealth of information about renting rooms and you could get good references to lawyers, cpa’s, companies that do background checks.
My husband and I are currently renting out a room in our house to a friend while she’s finishing up her last year of college. We are currently doing a flat fee monthly at $300 which we reduced from current market rent for a room to help her out with expenses. We told her that she can stay either when she finishes school or we have a baby - whichever happens first since her room is where the baby is going. She handles her own food most of the time and is more than welcome to share our dinner if we have extra. I do miss my privacy and the non-drama. We were more lax with the rules since this was helping out a friend and it wasn’t like we were renting out our rental property or so we thought. However, when we have added rules along the way, she was very understanding and has abided by them. I don’t think we’ll ever do other pets again, because her 2 cats and our 2 cats are not really getting along that well, especially the first few months. Right now there’s kind of an uneasy peace between them.
Good Luck!
January 30th, 2009 at 9:57 am
I work in commercial property management and one of the things that happens frequently (about 95%) in commercial or retail leases is that utilities etc… are estimated at the beginning of the year with a monthly amount figured in, and then reconciled at the end of the year with either a credit or additional bill coming due.
I think the reason most residential landlords don’t do this is that your lease terms are generally much shorter (commercial leases range from 5-15 years) so it’s more of a hassle if you have to reconcile every month or two due to people moving in/out… but it would be the most accurate way to go.
I’ve often thought it would be interesting to start a 21st century boarding house… I wonder what it would be like…
January 30th, 2009 at 10:03 am
I used to be a renter of someone else’s spare bedroom room, then got a similar place of my own nearby and rented out the spare bedroom.
The way I’ve handled it is to write up a contract and make the terms as specific as possible: total length of the contract, rent per month, date due per month, fees for late payment, how utilities are to be split, what happens if the contract needs to be terminated early, what the common areas were, etc. This was all made really clear, even though I only rented to friends or acquaintances, just for piece of mind. Doesn’t mean you can’t be flexible with things, but it never hurts to have something in writing just in case things go wrong… at the very least, you’ll have a default to go back to.
At the end of the contract, I put a section about “roommate behavior” and stated that both I and the roomer were responsible for adhering to it. It contained stuff like how to deal with guests, alcohol, smoking, pets, etc.
This all worked out mostly well, though in retrospect it might be a good idea to put something in about dishes and food as well.
January 30th, 2009 at 10:12 am
To reiterate what a lot of folks have said:
put *everything* you can think of in writing.
Make sure you’ve outlined how to end the relationship–for both the renter and the landlord.
Consider building in the cost of a cleaning person. Nothing is more frustrating than to discover that your new roommate has different cleaning standards than you do, and you’re stuck doing more of the cleaning than you want. (I mean, this can be a real issue with your lover, so just imagine how annoying it could be with someone you’re not personally invested in!)
Is there any way to make one of “the common rooms” an extension of the renter’s space? For example, if the dining room is actually a separate room, could you move the table into a corner of your living room and make the dining room into a secondary lounge space? On either side of the equation–renter or landlord–it’s often nice to know that there is a place for you to go in your home that isn’t your bedroom and that won’t be occupied by someone else.
January 30th, 2009 at 10:24 am
Some of this is what I remember, some of it is what I’ve observed, some of it is what scares me to death:
1. Absolutely get your renters vetted - AND KEEP YOUR BILLS AND ID LOCKED UP. I know SEVEN people who’ve had their identities stolen. No, they weren’t all from renter situations - but it’s an increasing problem, and you just want to make sure you have a secure place to keep this information. It’s for your renter’s security, too; if your information is secure, you won’t have to worry about them.
2. Control your own environment - if you keep the temperature low in the winter, high in the summer, keep the controls, but let renters know ahead of time. I’d be perfectly happy with woodstove heat in the winter (I build good woodstove fires!), but I need AC for my health; I start it early in the season, and run it until it’s cold.
3. If you have a multi-cat household (like Jen@46), Feliway is worth the investment - it’s feline pheremones that calm down combative kitties.
4. Make clear in a lease at what point your guest’s guests become additional tenants. If your guest has someone sleeping over three nights a week, you now have two guests, not one, one of whom is not paying for that privilege. If you don’t permit overnight guests, put it in the lease.
5. Everyone else here has covered most of what anyone is likely to encounter - cleanliness, dishes, laundry day, noise permits, etc. For Penny, specifically, I think it’s a good idea to list your family lifestyle, if only to avoid renting to a well-behaved, quiet, non-smoking, animal-friendly vegan, who is prepared to live with nine ducks but not that dead deer in the kitchen, or the bunnies in the stewpot. Make sure you give your potential guest a glass of well water to sample! Some water is very distinctive, and could make or break a guest’s choice. It wouldn’t bother me, but it might well bother others.
6. For those of you who list your rent as being due on ____ [specific date], make sure you list the “or else!” clause! That is, if it’s x days late, there’s a late fee; if it goes beyond xx days, your belongings will be packed and put on the porch for you. (And make sure that that’s legal in your state, first.) But if someone’s not paying the rent he or she owes, you want to be able to come up with more than just “your rent is late”; your renter is probably going to be aware of that, you need to have consequences to that lateness spelled out. In fact, you want to have consequences spelled out to any behaviour you want to avoid - if dishes ARE left in the sink, you lose kitchen privileges for a week. Enjoy paying for those meals away from the house! So figure out what the consequences are for the actions that you don’t want that wouldn’t necessarily cause the lease to be broken. You also want to consider what those actions might be, as well; illegal drug use might be high on the list of lease-breaking activities.
7. For anyone with a child in the house renting to someone, it’s common enough these days for people to have to get police clearance to be around children - the guy who fixes the wiring at a school has to have that kind of clearance, adults who volunteer for Little League coaching; anyone who’s going to live in your house with your family can fill out that paperwork, too.
8. If you have the room in your house you may want to consider providing your renter with his/her own sitting room. This is a good solution if you have more than one room available, and would prefer not to have your own living room occupied by someone else (that “invisible tenant” as described in an earlier post). If you prefer your tenant less, rather than more, visible, make it easier for the tenant by providing an area other than the room in which he or she sleeps. Obviously, it’s not always possible, it’s not even always necessary or desirable, but different people have different privacy requirements. It could make a difference, too, in what you are charging; if you have two rooms, do you want two roommates? Do you want only one roommate? Do you want a tenant, rather than a roommate - that is, someone as invisible as possible? Offering someone the chance to rent two rooms - or including it in the rental price, for your privacy’s sake - may go a long way to help ensure your privacy and that of your tenant.
January 30th, 2009 at 10:52 am
* Find the landlord /tenant laws for your state (and city if they have it) and read up on what the rules are. You might find a book in the library covering your state or at least general rules.
* Get a written contract agreement with the renter and make sure it has all your rules in writing.
* Figure out all your rules in advance. Think about all possibilities. Do you want to allow smokers, pets, alcohol, stereo or tv after 10pm or before 7am, where is parking allowed, can they hang items on the walls, can they paint the room, can they have an aquarium, can they use the TV in the living room and if so how to share it, do you allow waterbeds, can their girlfriend/boyfriend ‘crash’ with them for a few days which turns into 8 months, is there a fee for late rent, do they have to do any chores and if so how frequent, will you vacuum their room for them or do they have to and how often. I’d make sure to put everything in writing and make it as comprehensive as you can. Yes it may turn out long but this stuff is all best to have in a written agreement BEFORE you rent.
* I’d do a month by month rather than week by week. Week by week is too short a period and you may end up with people coming and going too frequently and get too much turnover. And its good to have a full months rent at a time so you can plan better.
* I’d avoid cooking people meals on a formal basis. I think that will likely end up more hassle then it is worth to you.
* Remember that rent is income and you are legally required to report it to the IRS. Make sure to keep tack of the rent and all expenses for your tax records.
January 30th, 2009 at 11:07 am
We always charged a flat monthly fee that included utilities and some meals (see below), which was a necessary arrangement for a house with a small kitchen. We had two different boarder situations and each worked, depending on your renter’s schedule.
–The renter who worked business hours shared cooking responsibilities with us. She cooked one night a week; we cooked two. The rest were on your own. Her rent included those meals.
–The renter who worked nights didn’t participate in our meal-sharing schedule so it was no problem.
January 30th, 2009 at 11:42 am
If the brother in law is still without work, why not rent it out to him in exchange for household work? Might be awkward, but could definitely help him out.
January 30th, 2009 at 12:13 pm
Trying to enforce a long list of rules is a good way to end up with an unhappy household. I have lived with roommates many times, although always in a shared apartment, never in a house I owned.
It only works OK when all parties involved respect each other and treat each other like adults. This is a person with which you are *sharing* a home. Yes, your name is on the title to the property, but they’re paying for the right to live there as much as you are. They will expect to be able to use the living room to watch TV, and the kitchen to make their breakfast, etc.
If you treat your tenants like children, by giving them curfews and complaining about how they don’t wash the dishes, they’re going to be angry, and your going to be angry, and no one’s going to get along.
An apartment rental agency can get away with this sort of thing, because the people that run the agency get to go home at night, and leave their problems at work. Maybe tomorrow at work they’ll have to deal with a noise complaint from one of their tenants, but that’s a lot different than being kept up all night by that noise.
And from the other side of the fence, the same principal applies. It’s easy to come home and complain about how the landlord won’t let you play your music at night, or have a cat, or whatever. But when your roommate *is* the landlord, then tensions grow and people get angry at one another.
When you get right down to it, shared housing is just that, shared. If you can’t share and compromise and realize that sometimes you’ll have to deal with the idiosyncrasies of the other people in your household *whether they pay rent or not*, then you’re all going to end up miserable.
I wouldn’t rent out a room in my house, because I don’t want to wait to do laundry because someone else is using the dryer. I don’t want to have to take a shower in cold water because someone else ran out the hot water. I don’t want to listen to The Late Show from the other room while I try to fall asleep.
These are things that you trade in exchange for rent, not simply space. You give up control of your household and agree to let someone else share that control with you. I used to be OK with trading these things for $400/month back in college, but now, I’m not.
January 30th, 2009 at 12:34 pm
Definitely write a lease! In Australia you can get free advice on this from Consumer Affairs etc, don’t need a lawyer or anything.
It’s very important to understand your legal position if you need to throw them out, they damage something etc.
January 30th, 2009 at 12:41 pm
Hello again, Having had some excellent housemates, I can offer tips on how I found them: http://www.diamondcutlife.org/top-ten-tips-for-living-with-others-part-i/
And here are tips on getting along with a housemate once you find him or her: http://www.diamondcutlife.org/top-ten-tips-for-living-with-others-part-ii/
As with many things, it can work great for some people, not for everyone.
January 30th, 2009 at 12:54 pm
Hi All,
I subleted from a couple once. They charged me a set rate, ~500 a month, utilities included. They identified a place for my food, gave me space in the fridge. Allowed me use of the living room (dvd, games, etc.), kitchen (of course), and dining room.
What really worked:
- They each (both guy and gal) had their own office / personal space.
- My room was on a separate floor with the guest room.
- Bathroom was shared but we were on different time schedules (and they knew this when they “selected” me).
- “little things” Milk, tea, condiments were OK for me to use.
Almost no problems. I think a few times I left some food in the fridge too long ;). I also learned a heck of a lot about coffee preparation and Dim Sum. Great Xp.
They remain friends today. We went to their wedding and I (with my wife) visit regularly.
cheers,
J.
January 30th, 2009 at 12:57 pm
Our daughter needed to rent an apartment or a room for a summer for a summer internship that was too far from home to live at home. What we did was to contact a church in the area she was going to, to see if there might be someone willing to rent a room to her. There was. A divorced woman offered her a room to rent. They got along famously. I am not sure of the details, but the two were able to find each other in a way that protected each of them. We knew someone who had attended that church and knew the lady offering the room. In turn, this same person knew our daughter and could give info on her to the lady. My daughter had access to the kitchen and the two of them cooked for each other. Perhaps the people wanting to rent out the room has a church affiliation or a group that can help them find a suitable person to rent the room to.
January 30th, 2009 at 12:58 pm
Renting out the spare room should be looked at as having a roommate. They should be treated that way both with bills and otherwise.
January 30th, 2009 at 12:59 pm
When you have someone else live with you, you do lose privacy. To some people, that is important. We’ve had various people stay with us. This was the most important thing for me to remember! I’m like the few who said that the hassle wasn’t worth the difference in money/help around the house.
I’d definitely make more “space” that is your own. I also think it is amazing that you all could share your common space with basically strangers on a regular basis, including bathrooms, kitchen, refrigerators, and living areas. Wow. It’s hard enough to do so with people that you know well, but strangers…wow.
January 30th, 2009 at 1:04 pm
I currently rent out a room in my 2 bedroom, 1 bath condo, and so far so good. I would definitely recommend going through your network of friends. That way, there is some system of personality check, and the renter may feel more inclined to respect your space if they feel they have a personal connection to you. My roommate pays $450 a month, plus half of utilities. Splitting utilities is KEY because that is going to be your largest variable expense. Unless you are willing to spend all your time policing your roommate’s energy consumption, I would highly suggestion this arrangement.
January 30th, 2009 at 1:14 pm
I’ve rented out the spare bedroom in my condo to 3 people over 8 years, including the first year and a half of my marriage (right up ’til 3 months before the new baby was due…). It’s been great.
I’ve liked Craigslist as a way to find roommates - of course you want to meet people and learn a little about them, but in general I’ve had great luck that way.
I hate dividing up utilities, so I’ve tended to stick with a flat rate, but I do agree that you have to be willing to tolerate the renter wanting things warmer than your frugal self would usually pick… if I were going to do it again, I would probably have gas and electric be divided up after all.
Overall - I’ve had minimal problems, and really enjoyed the experience (and the $$ saved!). Good luck!
January 30th, 2009 at 4:20 pm
Our city codes only allow two families per house - so no renting out several rooms.
January 30th, 2009 at 4:41 pm
Not sure if this has already been mentioned, but… check your state’s laws regarding eviction. In many states, regardless of the length of your tenant’s lease, there are strict rules about how much notice you must give your tenant before asking them to move out. Don’t assume that because it’s your house you can ask your tenant to move out at the drop of a hat. In a “worst-case scenario” situation, you want to be prepared to do everything by the book to prevent more headaches.
January 30th, 2009 at 5:30 pm
I rent out a few condos in Miami and Toronto and as I have helped others rent out places, I would suggest that if you are going to rent out a room, try a local graduate school.
One of my Miami condos is rented out to two female medical students and its been a perfect situation since both are mature, quiet and have the ability to pay.
Obviously you should prepare for a nightmare tenant but with a thorough checklist, can weed out potential problems.
Are you allowed to do credit checks? Ask for upfront 1st and last months rent. For my tenants, not only do I get a 1 month security deposit, they all give me 12 post dated chq in advance so I dont have to chase anyone down.
The big thing will to make up a contract before starting to look for tenants. Make sure you get all agreements/rules in writing and signed by both parties.
goodluck!
January 30th, 2009 at 5:55 pm
I’ve been on both sides. After I left the military and had a divorce I was the tenant for a few years. After I bought a home much larger than my needs, I rented out two bedrooms and the basement.
Some roommates were very good and others were terrible. One stayed for less than two weeks, two others stayed for over a year. Overall, I found about a third of my roommates or landlords were boneheads. Several are still good friends.
After I was laid off during the dot-compost days, the extra money was very helpful.
The previous advice about a lease and house rules would have saved me some headaches.
Rent was based on the going rate for a studio apartment in the area and I never had any problems asking five hundred dollars a month. The home had a walkout basement looking over a gorgeous park with a pond. I provided wireless and wired internet access and even leased a public IP addresse to one roommate.
I preferred posting shared utility bills and evenly splitting them. Ubiquitous cellphones make landlines less of a problem these days, but a heavy telephone user gets their own line the first time I get burned.
One roommate had a great black lab. Another had a cat that urinated everywhere except the litter box. A returnable pet deposit is a very good idea.
It is much easier evicting a stranger than an acquaintance. However, the stranger’s very first rent check bounced. When the next check to cover the first also bounced, I let him have two days before installing new exterior locks. I allowed one “friend” to take advantage of me by failing to pay rent for months. I should have kicked him out the first week after missed rent.
One very useful tip- take a good look at a prospective renter’s vehicle. If it is a mess with layers of food wrappers, they will likely treat their living area the same.
Overall, the experience worked well for me and also taught a few valuable lessons.
January 30th, 2009 at 6:36 pm
I’ve recently bought my first house, 3 bedrooms, and I was thinking of renting out 1 of them. In my view, unless you are a huge people person and love being around people all the time, renting out a room is pretty risky. What if you get a tenant whose personality doesn’t mesh with yours. What if you have nothing in common? Are you just going to ignore each other for the whole time they’re living there? What if they play their music too loud or have guests over all the time? It just creates a lot of problems if you don’t get a nice quiet tenant, and there’s really no way to screen for that. You can’t realistically have like a “test phase” of like 2 weeks where you see what their living style is like. No one would go for that. So, do you risk getting someone you don’t like as a tenant or do you not bother renting out your room? It’s a tough choice.
January 30th, 2009 at 8:12 pm
//Don’t assume that because it’s your house you can ask your tenant to move out at the drop of a hat. //
Again, my brother has a handle on this kind of situation - he goes to them and says, “listen, this isn’t working out for either of us. If you leave now, within the next day, I’ll give you your security deposit back plus any from now until the end of the month”… they always move out. Simple. He gets a bit of a hit financially, but he usually isn’t without a renter for more than a day or two, and usually then the renter is a better one.
Just because you can’t kick someone out, doesn’t mean you can’t “get” them out. Money always works.
January 30th, 2009 at 11:12 pm
My maternal grandparents bought a large home back in 1947 and to help pay for it took in boarders. With my grandmother working part time and cooking for a family of 4 plus supper for 3 renters she was a busy woman. It can be done but aggrements must be setteled on ahead of time.
Having the large house was a blessing as there was enough room that people were not bumping into one another. Also all the renters were older (one was my great-grandfather) and didnt raise hell at all times of the night.
Renting out a room can be a very good way to help get a house payed off, just have all your ducks in a row when you decide to do it. My grandparents and a good friend of mine booth went that route and it worked out well for all of them, but they were also picky about who they rented out to.
January 31st, 2009 at 7:32 am
I’ve had several years of experience as a landlord/homeowner, renting an unfurnished house, a furnished duplex, and a room to a tenant/room mate. I’ve also taken one tenant to court, and had a ruling in my favor, because I had excellent documentation and evidence for my case. So these experiences are the basis for my following comments.
Background checks:
Don’t waste your time or money. This will only identify “criminals” who have been reported and caught. Rely instead on your intuition and life experience to assess personalities and integrity, based on face-to-face interviewing (I like the dinner idea too), and other evidence of the prospective tenants’ lifestyle and credibility. One of the best tests for this is to create an opportunity for you to drop off an application, or information sheet, or something at their current residence, so you can get an idea of the way they live (the aforementioned car assessment also sounds like a good one).
Legal consultation:
I wouldn’t spend my money on this service either, unless you strongly feel you need it for your own peace of mind (that can justifiably trump other logic and frugal values). If you have your terms clearly stated and agreed upon, you will be sufficiently covered. I would not rely on standard templates of leases or rental agreements. They lack most of the details that are potential items of contention. The attorney I hired for my one and only court case told me that my rental agreement was the best she had ever seen.
Bookkeeping and Tax Records:
You can do this yourself, if you are comfortable doing your own taxes. Tax preparation programs can help. I use Intuit’s Rental Property Manager program. Even though I would be perfectly capable of doing the accounting myself, I use a CPA (just because I despise doing taxes, and I also appreciate the peace of mind factor). Of greater importance is keeping good records of your rental-related expenses. One change I’ve made recently is to separate my purchases of items that I use at home from the same items that I use for rental purposes. Include paper products, cleaning supplies, lightbulbs, vacuum cleaner bags, printer paper, postage, keys, window treatments. It’s easy to overlook these costs as incidentals, but they add up more quickly than you’d imagine.
House rules:
I would write up the details of designated space usage, scheduling issues, levels of cleanliness, visitors and such, the way you would if you were running a camp. There are excellent suggestions from other commenters, but walk through your house to help you identify things from a shared room mate perspective. Also, include yourself in the rules. You may even want to adjust the agreed rules with your tenant, with their input. That might be a good way to determine preferences for handling consumables, food, and shared meals, which may differ, depending on the tenant. The idea is to get consensus before there’s an issue, so that each occupant of the house knows what’s expected of them and what to expect of others.
Communications:
I’ve had good success with having a posted message center (mine has a couple compartments and a place for slide-in name labels). It’s a good way to communicate messages when occupants are on different schedules or often passing each other on the way in or out. It works for leaving a note about something when it occurs to you without having to remember to say something when you see each other. Another benefit of this system is that you can use it to write calm notes about awkward issues that you may be reluctant to address in person.
Documentation:
Keep a folder with your rental agreements, tenant information (for forwarding mail, returning their deposit, or calling them about whatever may come up after they leave), and other receipts, documents, and such. Also start a list of things to include on your next rental agreement revision. You will discover issues from your experiences that should be included for subsequent tenants. Also, you may want to take photos of the pre-tenant conditions and furnishings, with or without a written inventory. Update those as the situation changes. If you plan on doing this on a regular basis, you might want to create an information sheet with a few photos (exterior of house, rental room, common rooms) and basic terms of rental, including rental rates. A MS Word format of this info can be sent by e-mail, and printed versions can be given out to referrals or other contacts. I’d recommend having hard copies of any pertinent documents (in addition to your electronic versions) because it’s so much easier to manage and it’s invaluable in the case of computer crash or theft.
If you’d like, I can send you a copy of the rental agreement I use for the furnished duplex I rent out as corporate housing. (Let me know by posting a comment here, and I’ll send it to you by e-mail from contact info on your blog site ) Avoid the “boilerplate template” lease model, and make your agreement specific to your situation. The agreement works best when it describes the details that are important to you and understood by all concerned parties. The idea is to have a mutually respectable agreement with terms that everyone understands and agrees to. It should not be some kind of legal “gotcha” form that presumes that the landlord is king and the tenant is a potential suspect with no rights or entitlements. You want buy-in, not grudging resentment.
January 31st, 2009 at 8:07 am
Sorry if someone already mentioned this, but there were a lot of posts so I didn’t read through them all…
Penny you say you use wood heat during the winter, but how warm are the rooms in your house actually getting? I ask this because a potential roommate may want to use an electric space heater, and you should come up with specific guidelines in such a situation.
Case in point, I live with four other roommates, all of us graduate students. Over winter break, everyone went home for the month except for myself and one of the guys. I have a full time job (I’m just finishing my thesis), so my electricity use was the same as always, minus the time I went home for the holidays. My roommate has a school job, so he didn’t have to work over break. Consequently, he was home all the time, in his room that whole time, constantly running the electric heater. With three people gone, our electric bill for the month was almost $80 more than normal due to his irresponsible habits.
January 31st, 2009 at 9:27 am
I would rent out for a flat fee plus half (or 1/3) of utilities. I would try to find someone you already know, rather than someone you met online.
January 31st, 2009 at 9:34 am
1. Make sure you can even let a room out in your house. Many cities and neighborhoods have restrictive convenants that prohibit you from doing so, unless you apply for and receive multi-family housing zoning.
2. Get a written lease. Make sure you know what your rights & responsibilities are as a landlord. Last thing you want is to get sued in a year because the tenant feels wronged and they have the law on their side.
3. Understand the legality of your postings looking for roommates. Discrimination based on age can you get you in trouble. You may want an older renter, but that may get you in trouble legally. That’s why realtors aren’t allowed to advertise properties as “great for young families” or “perfect for an older couple.”
4. Protect yourself & your assets. Make sure you have adequate liability insurance. Get an appropriate security deposit from the renter. Do background & credit checks.
5. Make sure you understand the tax liabilities of being a landlord. Either talk to a CPA/tax advisor or get a really good book.
January 31st, 2009 at 9:45 am
(Angulo you are a weird who needs help)
In the uk a large part of room rentals income is not taxed up to £4000 a year. I’ve rented out a room for the last 8 years. I include bills so I’m not chasing people for electricity or gas once they leave. Ihave wifi for the house. I used to try and get the lodger to buy bog roll or washing up liquid but now don’t bother and just added another £10 onto the rental a month.
I advertise via http://www.gumtree.com which more people ue here than craiglist
January 31st, 2009 at 9:46 am
ps when interviwing potential roomies always listen to your intuition!
January 31st, 2009 at 11:24 am
@ Mr. Fisher- I would love to have a copy of the rental agreement.
I think that these ideas are great. I’ve gotten a lot of perspective from all the various contributions. It seems that the over-arching advice is to be sensible and take it slow.
January 31st, 2009 at 11:42 am
As someone who out-and-out “sublets” her apartment while on vacation, I’ve written a few how-to posts on the subject:
http://moneymatekate.wordpress.com/2009/01/04/4-ways-to-put-your-home-to-work/
http://moneymatekate.wordpress.com/2008/09/30/vacation-pay-for-the-self-employed/
Hopefully Alison will find some of the information useful.
January 31st, 2009 at 2:26 pm
Penny,
I can’t find any contact info for you on your website (you might want to include it at some point). Here is my home phone number: 757-489-2996. Call me and I can talk to you about my landlord experiences in additional detail, and get your e-mail address. It looks as though your blog is fairly new. I just started my own blog a week ago: http://denise.fisher.wordpress.com (I’m still working out the kinks and getting set up), and it looks like we share similar topics and perspectives (my focus is on getting fit, getting organized, and getting one’s financial affairs in order - I think they’re overlapping objectives). Perhaps you can give me your perspective on your blogging experiences and the topics of your posts in exchange for the documents I can send you. (I have a couple other docs I can send you as well.) Call whenever you like. I’m in the Eastern Time zone.
January 31st, 2009 at 6:09 pm
Being one myself, I agree that grad students/young professionals are generally a good type to rent to. Though I can’t speak for everyone, my friends and I who rented during grad school were there for one reason: school. We weren’t there to party or cause trouble or harass our landlords. We were friendly but we were BUSY, so we didn’t have a lot of time to lounge around in our landlord’s living room and getting in people’s way.
I personally wouldn’t want a landlord that I would have to be buddy-buddy with or share meals or anything “parental” like that. I’m not joining a family or expanding my social life, I’m just living there. As a renter I just want my own space and a nice, approachable landlord that I have a good “business” relationship with.
January 31st, 2009 at 7:19 pm
Taking in boarders is the most sensible thing in the world, and given the present economics, I think it will become a more common thing to do. People that have not considered it before should read all these great suggestions and advice. Community placement offices are encouraging elders who want to keep their homes to rent to tenants - it’s a great idea for single parents, for example, to rent from an older person, since it provides everyone with more connection and support. (running errands and doing chores can be part of the agreement.) Another model is co-housing - where people really are setting up a cooperative intentional living-together situation with shared meals and lifestyle decisions, creating an alternative family.
It was interesting to read that some of these things happen by themselves among renters and leasers.
January 31st, 2009 at 9:45 pm
I had a slightly different experience renting out extra space in my house that avoided all of the people problems mentioned in responses above.
I used a new website called http://www.homstie.com that let me rent out my extra space as storage instead of living quarters. I listed my 2 car garage on Homstie and had multiple people “apply” to rent my storage space. I selected the one who seemed most trustworthy and he is now paying me $200 a month to store his boxes, couch, treadmill, and rooftop ski rack in my garage. I bought a lease agreement from Homstie to legally bind our transaction and we set up a monthly recurring payment on PayPal. I can’t think of an easier way to make $2,400 per year.
To top it off, apparently my renter is saving big time. He used to pay over $700 per month for a similarly sized unit at Public Storage!
February 1st, 2009 at 12:41 pm
Now I have read most of these comments and have been enjoying seeing the different viewpoints from the landlord and renters. I haven’t been a landlord as I am still renting. I have lived in college residence, lived with family, other familys that I didn’t know, my friends, and complete strangers.
Now I know everyones saying write down every little rule but that makes you seem very unflexible and personally it would scare me off quickly because it makes a person come across as not very easygoing. I had a bad expierence living with a family. The house was very large and I had my own room and shared a fridge with another person renting there. This was fine but the family took up half of our food space with thier things and kept telling us they were going to clean it out. There were no animals when I moved in, but after about a month of living there the family got a puppy. They didn’t tell me they were going to do this and I probably would have been fine with it(I don’t mind animals) but when they would leave for a day and I would be home with the dog barking all day it strted to get on my nerves. I usually get home from work around 7 and I will take a shower some where from 8-10pm. The landlord told me I couldn’t take showers after 8 because it was to noisy. Eventually what made me move out was the landlord would look in my room when I wasn’t home(no locks on the doors). I wouldn’t move into a place without a lock on the door. I am fine with them checking every once in awhile but they have to give notice. But the biggest problem was I just couldn’t stand the father/landlord he was very opiniated and felt the need to share his opinions with me, hit the new puppy yelled at his children/wife all the time.
Now I am sure you could make it work for you but just thought I would give the renters point of view. Most of all communication is important and if you make rules, I think its good to explain them. Earlier someone mentioned they wouldn’t allow renters to change the thermostat. I hope that if someone wanted a temperature change they wouldn’t just say no its my house I control the temperature. The person is paying money to be there. Shouldn’t they be able to live close to the way they want to. Instead of just you.
February 1st, 2009 at 4:49 pm
I’ve only been a subletter and am currently a roommate where we’re both on the lease. My best advice is to pick someone whose lifestyle is very similar to yours and values the same things you do.
For example, my roommate and I are both messy. Before we agreed to room together we clarified exactly what sort of mess we were willing to tolerate (no rotting food or bad smells, some dust is okay, some clutter in the common area is okay).
I would describe how you live in as much detail as possible in your ad. When I was looking to be a subletter I knew what ads not to respond to, just because I knew the lister’s lifestyle and mine would not mesh.
February 1st, 2009 at 8:23 pm
I bought my first home last year and rent 2 rooms to friends. Since they were previous relationships, we very deliberately went for coffee twice to talk about how the living arrangements would work for the 3 of us. Almost a year later, I would say it has gone really well, with one big regret…
I really regret charging flat monthly rent with no portion of utilities. Aside from their environmental consciences, they have no incentive to conserve. Two quick examples - their significant others do their laundry at my house when I am not home. I recently found this out. Second, the doors get left open for unreasonable amounts of time. And in Minnesota in January - I can practically see the dollar bills flying out the door.
February 1st, 2009 at 8:30 pm
Zafer - you start out saying you don’t want a place with a lot of rules, then list four common points of contention between people living together (use of common spaces, animals, noise and access). Seems the kind of thing you’d like to have covered in writing.
It can be awkward and tedious to read through and understand things, sure, but it’s better to get things sorted out before than after.
February 2nd, 2009 at 9:28 am
Utilities: I am into simplicity and liked including utilities. However I kept records of the year before she moved in and the year after she moved in to show her the impact of her residence on the bills. We weren’t comfortable splitting it evenly because we were a family and she was one person. Part of keeping that cost down was not allowing her thermostat priviledges. The thermostat was set and she wasn’t allowed to adjust it without consulting us.
Guests: For personal safety she wasn’t allowed to have guests when we weren’t there and no overnight guests. Since this was a friendly situation that wasn’t a big deal. For a stranger I would make VERY clear that you are responsible for anything done by a guest. I have known people to have things stolen or broken and not replaced by guests of renters.
There are leases and then there are roommate agreements. The lease is the rent/utilities, etc. The roommate agreement are how you get along. I would suggest revisiting the roommate agreement a month after move in and then quarterly. You can start it really sparsely with the things mentioned here and then adjust. By scheduling the meeting you avoid doing it when there is a specific problem and your emotions are high. There are going to be things you don’t think of. One of ours was the length of showers. Our housemate would take 45-60 minute showers. That was unacceptable and there wouldn’t be ANY hot water left. Who thinks of that before someone actually does it?
Another point: Will you shop for them? That was a service I offered. I shop on a schedule and if a list was available I would shop for her. It wasn’t a big deal for me, it made it easier for her (so you could charge for it), and it gave me a lot more power over food and storage. This could get sticky so it is the sort of thing to keep in mind and offer to someone you are already getting along with, but if you include any food in the rental agreement you should have a plan for shopping.
Finally remember THIS IS A BUSINESS ARRANGEMENT. It can be hard getting in a landlord mindset. You want to be nice. You are understanding and sympathetic. But THIS IS A BUSINESS ARRANGEMENT, not a charity, not a friendship. You can be friends, but don’t let it get in the way. This is your home and your property and remember that.
February 2nd, 2009 at 12:03 pm
From my experience, the most important thing is how you each treat the common areas. Make sure you set the rules from the start (i.e. dishes, food, level of cleanliness). If these things are established, less problems will arise.
February 3rd, 2009 at 10:57 am
I didn’t read all the comments, so hopefully this isn’t duplicative.
I’ve rented rooms plenty, and have been in the position of needing a roommate and not needing a roommate, but wanted the extra income.
You are in a much better position to find a good roommate if you don’t necessarily need one, but just want some extra income. That’s a strong position to be in when it comes down to weeding out roommates.
Also- dishes are the #1 problem that creates problems with roommates- steer clear of that and things will be fine. . .
February 3rd, 2009 at 11:47 am
After being off of work for 7 weeks, I have a lot of RSS feeds to catch up on so forgive me for not reading the entire thread.
I rent out both of my spare bedrooms and have been doing it for a few years. It has its headaches but the extra money is very, very nice.
- Rent it out with all utilities included on a weekly or monthly basis. It’s way easier that way.
- Have rent due on the 1st of the month and if they move in on a day other than the 1st, have them pay a partial month first. Once again, it is easier this way.
- Usually my roommates will pay for their own food and cook it themselves.
- Be patient when finding roommates. When you find a potential roommate, sleep on it a night and let them know your final decision the next day.
- Trust your gut. Every roommate that I’ve had that I’ve had an iffy first impression hasn’t worked out. All but one of the good first impressions worked out. This is your home so be picky about who lives in it.
- Be fair and honest with people. I’ve discovered some iffy things about people so expect surprises because not everyone is completely honest.
- When advertising, use a bulleted list like this. It is easier to read than paragraphs. Also, use shorter sentences than I’m using now.
- There is a high chance that you will get some “interesting” stories from having roommates. I know I have.
February 3rd, 2009 at 11:52 am
Oh, a few more things:
- I set the expectations early about the cleanliness level of the common areas and the chores that need to be done.
- For me, no food in the living room, no shoes on the carpet, and keep the common areas clean. Don’t care about your room or bathroom unless the bathroom gets nasty.
- Set expectations for overnight “guests”.
- Craigslist is the easiest place to get roommates but this also leads to some good stories.
February 3rd, 2009 at 2:57 pm
It really depends on if you want a roommate or a lodger. I know a lady who rents her (finished, daylight-ish) basement to someone, and they don’t really interact. I live with roommates, one of whom owns the house, and it generally goes pretty well.
Also know, some people don’t want to live with a couple in a group situation, especially if it is just the renter and the couple. I have, and it was an awful experience and it lasted only three or four months before I moved. (as the third person, whenever there was a disagreement I was never the one with someone on my side — it got weary and stupid when I started being accused of things that didn’t happen and the boyfriend was too whipped to back me up when he knew the truth of the matter).
Alternately, you could look for short-term renters. I’ve known people who specified a room would only be available for six months. There are plenty of students and travelling nurses out there who are willing and wanting to do this.
If you’re more interested in the income than the roommate, then I would really re-think doing this.
Also, figure out what type of roommate you want. If you don’t know where to start, start by reading housing offered/wanted ads on craigslist. If there aren’t many in your location, look at those of bigger cities. *Really* know what you want from a lodger and what you can and cannot stand. Personally, I won’t live with anyone who smokes pot, though I can stand having a mildly untidy kitchen and bathroom.
In regards to utilities, you can just split everything three ways, or you can do what my landlord does: charge $50/month. At the end of last year, the amount of utilities paid was less than the actual utility cost, and I got a discount for my share not used. It was a nice bonus at the beginning of December.
February 4th, 2009 at 2:59 pm
My wife and I have rented out our attic to Japanese students who come to the US to study English for a short time. We are working with an agency that arranges for the visits. It has been a wonderful experience - all we do is provide the room, breakfast & dinner.
February 8th, 2009 at 10:54 am
I rented a spare room from a woman once and it worked out very well. To put myself in her or any other person’s shoe who does so, it seems all about the person or people you actually wind up renting to. Renting a room usually means there is some other focused activity area in the renter’s life. In my case I was going to college and I understood college (and working to support that), were my goals. I kept my footprint in the house as small as possible while there, making very conservative use of the kitchen and other areas. In fact, it was very odd for me to ever be out of the room save for coming and going.
For someone who wasn’t as focused, who, in essence, attempts to “rent the house” by “renting the room”, I could see where problems might crop up. In my case, I could ignore not being able to play loud music because I knew where I was was basically temporary and didn’t demand equal rights as a way to make life easier for the widow, and, prolong my cushy situation. Someone just living life and asserting rights to do as they please in their “space”, on the other hand, could wind up very badly for the renter.
February 12th, 2009 at 11:52 pm
Well, the subject is
“how to rent out your spare room”
1st thing you really need to decide is if you want a roommate, or a tenant/boarder–
There IS definately a difference.
Make sure you state which you are looking for in your ad, AND put it in writing in your lease.
In most places, even the laws are different regarding a roomate vs a tenant/boarder. Usually tenant/boarder situations within your home have less legal standing in court. It is easier to evict as well. Their space is confined to their room, and bathroom and is usually written up as such. Basically think more of a hotel guest, it is viewed as a temporary housing, even though they may stay as long as you let them.
A roommate shares much more of the house–more common areas. Laws look at this differently-they have more rights than just a boarder/tenant-even though you own the home. You usually must give this tenant specific mandated notice of eviction, because they can establish residency. They are covered by very specific laws, as you are as well.
This is to protect both parties.
A tenant/boarder mostly just sleeps and bathes there, they stick to their “Room” unless you have a food or kitchen priveledge agrmt.
In my experience of 15 yrs as a landlord, I have rented to roommates, boarders, and seperate apartments–I say–know what you can live with ahead of time.
If you are looking to just rent a furnished room with bathroom priveledges–most of the available prospects are single men, few women in my experience. These are usually the easiest tenants/boarders, they sleep, wake, shower, go to work, go out and eat, come home only to do the essentials…**Usually very low maintenance**. This is great for people who work too far from home and get a flat rate “per diem”–business men who work in different cities a few to several months in a row. Many prefer to rent a room as opposed to a hotel, it’s more economical.
But the possibilities are endless.
There are many foreign exchange student possibilities as well. Both for highschool and college level students. Some are for more independent students, some are more like “host families” where you include them in certain meals and designated activities.
I have had wonderful experiences, and horror stories.
If you are looking to do this to make a few extra dollars, because you are needing the $$–you MUST look at this as a business endeavor, not a personal one.
If you are not “needing” the $$ but would like an easy way to save additional $$, perhaps you would like to be more flexible.
2 areas aside from on time rent pymts were an issue and MUST be agreed upon ahead in writing–kitchen use/cleaning expectations, & bathroom use/cleaning expectations.
Designate 2 different days for laundry use if you include this in your agrmt.
And ALWAYS have included in the lease a provosion for guests, over night or any other kind. Most residential leases have this provision-even hotels have requirements-so why should renting a room in your home be any different?
If you do not want over night guests, make it known and agreed upon in your ad and in the lease in writing.
If you have children in the home, you don’t want to explain to them who the strange woman/man is in your kitchen every few days…
You can put almost anything you want in your lease when it is a part of your actual home that you are renting.
A suggestion is to actually view the roommate/shared housing ads on craigslist–view them for your area and any other area–see what people are asking for rent and what ammenities they include–see what types of things they ask up front–You’d be totally suprized on the arrangements people make when it’s their home, and there is always someone who will follow and appreciate your rules/guidelines/lifestyle, and those who will pass your ad by thinking it’s not for them. Go take a look!
March 15th, 2009 at 8:15 pm
The Seattle Times had a feature on this today. If anybody is interested, here is the link:
“In tough times, the rented room is resurgent”
http://seattletimes.nwsource.com/html/pacificnw/2008817655_pacificproomies15.html
April 24th, 2009 at 7:06 am
I’ve had tenants and roomies, often people I know. I think if I was going to do it again I’d do the following:
1. Have the candidates come to your house to meet you and review the space. Once you accept someone, though, go to THEIR house to see how they live now. I had a friend who lived in cluttered spaces she swore she’d clean up when she lived here - not so. A roomie needs to be compatible. I’d also recommend starting the tenancy with an understanding that the first 3 months is probationary to see if they fit. If they don’t, they have to leave in a month and you’ll rebate them 2 weeks rent to manage moving costs.
2. Don’t just make it a sweet deal so you can get your pick of roomies. Make a deal you’ll be happy with. That way, even if they aren’t as wonderful as you’d hoped, you’re still getting financial benefits and don’t end up resenting the situation.
3. Be clear. Very, very clear. Who pays for broken things? Who shovels the snow and leaves? Who cleans the common areas? Who does the garbage? A million fights later on will be avoided with clarity now.
August 12th, 2009 at 1:26 pm
As a result of the credit crunch, in January 2009, I launched http://www.hostatourist.com. It is the first social networking website of its kind that allows homeowners to earn extra cash by renting out a spare room, couch or airbed to tourists and visitors.
For tourists and visitors it is far cheaper than staying in a hotel.
It is also handy when hotels are in short supply during major sporting events like Olympics 2012.