Renting out a room from your house

**kork13** · 10-07-2010, 02:11 AM

As you've already stated, the biggest factor is that having a roommate works for some people, and for others it doesn't. I had 2 roommates for over a year at one of my previous assignments, and it worked out pretty well for us. And as long as you aren't reliant on their rental income, it's win-win for you. You do need to be careful about a few things, of course... The biggest one is finding someone who not only is reliable enough to take on as a renter, but also someone you can live with as a roommate. If either one of those isn't satisfied, you're in for a hurting. Also, it's a good idea (necessity?) to have a lease agreement that clearly states the roommate/renter's obligations, and a policy for making him move out if it becomes necessary. As you can see in investingnoob's thread, it can go really badly if you get the wrong roommate. But in general, I'd say it's a perfectly good idea, and if you're amiable to living with someone, it's a great way to go. Save the extra income, or pay off your debts, whatever you need to do.

**Shaabenanizer** · 10-26-2010, 09:38 AM

I occasionally rent out my guest room on temporary basis, usually to women moving to the city and needing temporary quarters until they find their own permanent place. It's worked out great because they already have jobs and friends so they have their own social life. Then I rented out to a woman who was new to the city with dreams of finding a job here. That was a mistake. She was really nice and sweet, but since she didn't know anybody here she was dependent on me for a social life as well as a sounding board when job options were not coming through. I won't do that again and went back to how the original plan. The extra supplemental money was helpful, but I think my cat benefited the most from the extra attention.

**jasedona** · 10-30-2010, 07:17 AM

The main thing to consider is whether it's the right lifestyle for you. Even the perfect roommate will leave a footprint... they'll occasionally have people over, they make noise, etc. If you can deal with this, and you can find the right roommate, it's a great way to make some extra cash to deal with a mortgage, etc.

-J

**jasedona** · 10-30-2010, 07:17 AM

The main thing to consider is whether it's the right lifestyle for you. Even the perfect roommate will leave a footprint... they'll occasionally have people over, they make noise, etc. If you can deal with this, and you can find the right roommate, it's a great way to make some extra cash to deal with a mortgage, etc.

**moneyclass** · 02-05-2011, 07:40 AM

ive had alot of experience with this. i bought my first house at 21 and i to was single so i had one of my guy friends move in and was collect rent from him. its like free money. when you get that money i would make a good financial decision with it and say pay down debt, pay down the mortgage, save for say another house (rental property)

one thing tho....living wit your friend is sweet at the beginning but can get alittle ugly after awhile probably get sick of each other.

**MrPolarZero** · 02-06-2011, 08:50 PM

Actually, one of the tricky bits of renting out a room is finding takers. But if you will near a school or a commercial area, it is likely that you will attract a lot of interested folks, especially if you have a good offer.

**97guns** · 01-08-2012, 07:56 PM

i agree with the free money, seems like a no brainer to me. being your a single dude your probably hardly home anyways. might be the same for your roommate and you guys hardly even see each other. your having the right thoughts to becoming wealthy you just need to start implementing.

**tajmahal2222** · 01-22-2012, 10:10 PM

Best Insurance policy life, car, travel, health- Policy Mantra

Hi,

What do you guys think about renting out a room from your house to roommate for some money. I know it's not for everyone, but for a single doode living by himself, it seems like a logical choice. I know the rental income can easily go as soon as roommate moves out. That's why its good not live off the rental income, but use it to pay off debt soon or simply save it. Has anyone had any experience with this or any concerns?

Thanks

**ecoadapt** · 02-29-2012, 06:19 PM

What do you guys think about renting out a room from your house to roommate for some money. I know it's not for everyone, but for a single doode living by himself, it seems like a logical choice.

It is not for everyone but as you said you're leaving alone. It's seems very LOGICAL! Not leaving your house but also has the income to save/pay your debt!

**joshuaking** · 12-26-2012, 07:16 PM

I rented out a room and a guest apartment in my home for many years. I never had a problem, because I always followed a few rules:

1. ALWAYS do a credit and background check
2. Never listen to hard luck stories about why the credit is bad
3. Always get a big deposit
and most importantly
4. Be willing to leave the room empty until and unless you get someone who meets your criteria.

**Wino** · 12-26-2012, 07:42 PM

Although it may have been said (I didn't see it, except as a passing comment), I want to interject. Do a formal written contract with at least the following things spelled out:

1. Rental amount
2. When rent is due
3. Utilities split (even if it is included in item 1)
4. Recourse if rent is not paid
5. Food/refrigerator/kitchen usage
6. Noise, guest, party policies
7. Payment for damages caused by neglect, abuse, or intent
8. Eviction protocol for breach of contract

Why you need the above:

1. Self-evident
2. "My payday isn't until Friday, and that's after the first. I'll have to pay late."
3. "Dude! I like my room at 85 in the Winter and 48 in the summer."
4. "Man, I'm sorry, but my car broke down this month. I know I already owe you last month's rent because of my tuition coming due. I'll catch up everything over the next two months, I promise."
5. You'd be surprised how much this gets overlooked. I have a friend whose only complaint with her roommate is that she never buys food, but raids the fridge regularly.
6. "My girlfriend lost her job and apartment, so she's moving in."
7. "Search warrant! We are looking for a meth lab on the premises."
8. Any of the above happens contrary to the contract.

There are probably others. Do you have an old dormitory contract from University? You may want to look that over for additional ideas.

**AccountantSalary** · 01-07-2013, 08:10 PM

When I had my first place, I always had a roommate and it was helpful because they paid a significant chunk of the mortgage, plus I got tax deductions for the rental. I had two bedrooms and two baths, so we each had our own space. The important thing is to run as many checks as you can (credit and criminal) on your roommate so you don't encounter any surprises after he's moved in.

**PrudentSaver** · 01-28-2013, 05:18 PM

In my opinion, it's really going to depend on the configuration of your house. Mine's a duplex, so I really wouldn't mind renting out the lower half to one or more tenants. But in-your-face living is difficult.

**qualityliving** · 05-14-2013, 12:12 AM

In my point of view if you share your room for rent from your house to earn money, it does not matter at all. Yes you can earn money with out any investment. But make sure your roommate must be some good guys. i am living with my roommate from last two years and they are also my good friends too.

Renting out a room from your house