How to Rent out a Room in Your House

With the state of today's economy, people are always looking for extra ways to make money. If you are living in a large home and don't necessarily need the space, renting out a room in your house may be a great way to bring in extra income. Of course, there are something you first need to know about being someone's landlord and the safety issue of renting a room.

Things You'll Need

• Internet access
• Ad in your local newspaper
• Membership and/or access to a company that conducts background and credit checks

Instructions

1. Determine which room(s) you want to rent and prepare them. Designate the room you will rent and start preparing them for tenants. If you are renting the rooms furnished, go ahead and make sure everything is clean and sparse. After all, there should be ample space in the room for the tenant to move in their personal belongings. If you are renting the room unfurnished, then make sure you have swept and mopped the space and fixed any broken fixtures. A fresh coat of paint is also a good idea.

2. Place an ad online and in your local newspaper. This combination of advertising will usually net you a fairly large response. Be clear about what you expect in a tenant, including things like "non-smoker" or "no pets." This will help you rule out bad fits before you invest a lot of time in the interview process.

3. Put together a vigorous screening process. After all, this person will be living under your roof with you. You want to make sure they are decent. Do a criminal background check as well as a credit check. Both of these will give you a good idea of what kind of person the applicant is. Meaning, if there is any discrepancy, trust your better judgment. If you get a bad feeling about someone, don't rent to them. Get a feel for the applicant's personality. Do they seem like someone with whom you could share a living space? These are all factors to consider before making your choice.

4. Draft a lease or rental arrangement. The rental contract should lay out all of the dos and don'ts of the house as well as the financial arrangement between you and your tenant. Be specific and go over the lease in extreme detail before either of you signs it. Though it is not a necessity, consult with a lawyer and have them look over the contract for legal problems before you present the lease to your tenant.

5. Post the house rules in a prominent place. This is still your house and your rules apply. If there are specific guidelines in keeping the kitchen and main areas a certain way, a written list of your expectations would be appropriate. Post the list where everyone can see it and be sure to be available for questions and/or comments. You should be willing to be a little flexible when renting a home in your house as tenants are paying you to live there; a little leniency simply makes the situation more pleasant for everyone. However, the house is yours and things should still be as you want them to be, regardless of who is living there.