A Roommate To Help Pay The Mortgage And Help Keep The House Maintained
Mortgages are squeezing the budgets of middle class families and singles. Some are living month to month and wondering how they will make that next payment. Their families might think the idea of renting a room is crazy but it isn’t so out of the ordinary these days.
While it may seem like a drastic measure today, opening a home to boarders was common practice just a century ago as an easy way to help pay bills and ensure a family’s survival. The good thing is that it means your home has the extra bedroom, ensuring resale value, and the extra income will help you maintain your home in good order until you’re ready to sell it.
The first thing is to look around at the room you want to rent. Is it close to an entry-way? If you have a two-story home with one bedroom downstairs, that one is probably the best to rent. It will give more privacy to your renter and to your family. You’ll command more rent if your renter has her own bathroom.
Get the room ready. Empty everything out to clean it thoroughly. Be sure you remove everything all traces of your family so the renter can decorate to her tastes. You’ll be able to ask if the new tenant wants it to be furnished (if you want that provided) or not. Add deadbolts.
Every state is different in how they govern landlord-tenant laws. You might not be allowed to do what you want to do and the last thing you want is to learn that after you’ve rented to someone to live in your home. You may be comfortable with those laws and maybe not. For instance, whatever state you live in, you probably aren’t legally allowed to enter your tenant’s bedroom without giving 24 hours notice. So if you enter the room without permission or 24-hour notice, you could be in legal hot water. This may be your home but that room is your tenant’s while she is renting it and following your contract.
There may be other state requirements varying from state to state. For instance, in California landlords must ensure that rental units/rented bedrooms meet the “standards of habitability.” These standards include access to a toilet and gas or electric heating supply, and a private, clean, well-ventilated room. The premises must also have functioning locks and natural lighting through a window or skylight. You, as a landlord have a duty to maintain these “standards of habitability.” If you do not, your tenant can legally withhold rent. Thus, keep the room in good repair. To be sure you are in full compliance of general landlord-tenant laws, you can find out about your state’s official website for links. To locate your state’s official website, type in “YOURSTATE.gov” or “YOUR STATE’S ABBREVIATION.gov” in your web address bar.
How much can I charge? That was the purpose, right? Check out the local market. Check out local papers. Look on Craigslist, roommate.com, and rentometer.com to see what rooms in your area are commanding. If you have any colleges nearby, that’s a real plus. College students are always looking for rooms..
Think about your contract requirements. You can purchase a general roommate contract at almost any office supply store and add to it at will. Address the issues most important to you. List the rent. How much is the deposit? Do you require someone single? Are overnight guests allowed and for how long? Is gender a requirement? Pets … do you have some? Does your tenant? Do you care? Will smoking be allowed? Will there be a parking space provided? Is cable provided? Will the tenant split all utilities or will that be included in the rent?
Advertise for yourself or perhaps use roommate.com. The interview process is very important. You must be sure you have the feeling that you will get along. Lifestyle is important to be sure you “mesh.” Is your tenant quiet or someone who blares music at weird hours? Don’t reveal too much during the initial interview, especially if you are single. However, talk about food, fridge space, how you’ll handle laundry, quiet time, and listen. A contract isn’t necessary during good times but simply an exit strategy if needed.
Be sure to ask for your deposit upfront. Do a background check before the contract is finalized. That’s easy enough through Experian for a small fee or through roommate.com. Ask to see present paystubs and permission to speak with her present employer or proof of student status and references from previous roommates.
Once you start covering a good portion of your mortgage by having a roommate, you might ask yourself what took you so long to do this. Who knows, you might even like having a roommate.