How to Rent Out Your Spare Room
Renting out a spare room provides you with income and your tenant with affordable housing. Potential tenants include college students and recent graduates, recently divorced people and those just looking to save money. If you live alone, it can be reassuring to have another person around, in case of an emergency. Some landlords develop friendships with tenants, others simply peacefully co-exist. Whatever you're preferred arrangement, putting a room you're not using to good use makes financial sense.
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Instructions
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Determine how much you're planning to charge for renting your room. Take into consideration the size of the room, whether it's furnished and whether the tenant has her own bathroom. Look at similar listings in the local paper or on Craigslist.org to get a sense of what others in your area charge. Also decide whether you're asking for a security deposit and the terms of your lease. You can rent month-to-month or lease for a period of time.
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Decide which rooms your tenant can have access to and whether you're providing any furniture. Decide whether your tenant will have full kitchen rights, and make sure you've designated space for her items. If you're sharing a bathroom, set aside space for her personal items.
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Clear any personal items from the room you're planning to rent. If you're providing furniture, ensure that it's clean and empty. If you're providing linens, have clean ones available for your tenant.
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Write a rental advertisement. Be specific on the type of tenant you're looking for, as well as how the rental is set up. For example, specify if pets are allowed, if smokers are welcome and where they can smoke (inside or outside only), if children are allowed and if you prefer a male or female roommate. Also include the rental amount and whether a deposit is required, and, if so, how much.
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Post the advertisement. Craigslist.org provides free online listings. Also consider advertising in local newspapers, religious bulletins or store bulletin boards. Include a contact phone number or email address.
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Decide whether you are going to complete a credit and background check on your potential tenant. If so, decide which service to use. For example, the Rental Protection Agency at RPAusa.com and E-Renter.com both provide financial and criminal background checks. Obtain forms from the website for your tenant to fill out giving permission to conduct a background check (typically called a rental application or information release form).
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Interview potential tenants. Show interviewees the space, discuss the terms of renting your room and reiterate the information from the ad. If you're showing to a potential tenant that you think may be a good fit, ask her to complete a background check form, if you're conducting background checks. Even if you're not, consider asking her for references so you can confirm her rental history. Let the interviewees know when you will be contacting them to let them know about the rental.
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Conduct a background check or call references. If you're satisfied with the results, call and let the interviewee know that you'd like her to rent from you. Set up a time for her to come by and sign a lease, along with her deposit and first month's rent. Call and let other interviewees know the rental is no longer available.
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Obtain a sample lease from your state, as landlord and tenant rules vary from state to state. In Maryland, for example, you can obtain a lease from the Department of General Services; in California you can get one from the Department of Consumer Affairs.
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Meet with your new tenant. Complete the lease, and provider her with a copy. Confirm her move-in date and collect the deposit and first month's rent.
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Tips & Warnings
Talk with your new tenant about how to divide up housework, like dishes and cleaning the bathroom. Set up a schedule and communicate it clearly.
Follow your gut when deciding on a tenant. If you feel uncomfortable for any reason, rent the room to someone else.
