Renting Out A Room? Take It As Seriously As Running A Business

Got a brand new spare room in your home? Maybe your daughter or son has gone off to college or moved out on their own. Maybe you just finally cleared out the room and have nothing else to do with it. 

Whatever the reason, you’ve now got some prime real estate on your hands. And if you’re keen to make some extra money this year, you might just want to turn your hand to becoming a live-in landlord. 

But when you do, you need to take it seriously. And you need to take it as seriously as you would running a company! 

Letting someone move into your home – albeit paying for the privilege – is not an easy thing to manage. Do you want to some day have a thriving real estate portfolio, with vacation rentals, fixer uppers, and commercial office blocks all mixed in? Then you’ll need to start off on the right foot right here.

Make Your Spare Room Fit for Purpose

No spare room can be rented out as is. It’s a spare room for a reason, so it might not have the essentials inside. A bed, a desk and chair, a space for a TV, storage – these are the furniture items you’re going to want to provide to anyone moving into a spare room. 

On top of that, there’s also a couple of other things you might want to do.

Have a clear out

If you haven’t had one already, now’s the time to clear things out, clean up, and make the space sparkling. You can’t invite potential tenants round to check out the room while it’s still clogged up with all your furniture and spare bits. 

If it is, they won’t be able to see themselves living there. They may also find it quite hard to believe that the room will be ready for them when they need to move in, and that can put even the most perfect of tenants off! 

Redecorate

If this spare room used to be your teenager’s bedroom, there might be some questionable decor that an adult tenant might not want to live with. Posters on the wall, wallpaper that doesn’t quite suit anyone over the age of 18, etc. 

And because of that, once you’ve had a clear out, it’s best to redecorate the space while you’ve got the chance. 

At the very least, give it a fresh coat of paint, make sure there are no obvious marks, scuffs, or stains, and try to take down any decor that stands out a little too much.

Screen Potential Tenants

Screening tenants is key to finding the right one for your home and lifestyle. The person in question needs to fit into the way you live, but they also need to have the right finances, personality, and care for the space in question. 

And to be sure of all of these things, you need to screen them before you agree to let them rent the space. 

Get their details

You’re going to need their name, number, and any other relevant details. This usually includes their age and profession, as well as an email address for sending out important documents. 

Look into their rental history

This might feel like an invasion of privacy, but rental laws make it so you can take a look though a tenant’s credit report and rental file. And when you want to take your rental business seriously, you’re going to need to check out a tenant before you agree to a lease.

You don’t need to know everything about them, but with a proper application for rental process through a screening company, you’ll be able to find out if there are any red flags you should be aware of.

When You’re a Live-in Landlord: 3 Top Tips

Being a live-in landlord takes some getting used to, trust us on that one. Because of that, we want to prepare you for the worst that might happen. So, here’s 3 top tips.

Make the lease as clear as possible

The lease is the place to put all the relevant rules for living together. Outline them early on, in clear terms, and as part of the living arrangement you’re both singing up for. 

For example: 

Are they allowed to change the decorations in their room? And if so, how? If they need to get in or out of the house in the middle of the night, what would you prefer them to do to prevent any disturbances? 

Define communal space rules early on

If you both share the same kitchen, bathroom, or living room, you need clear ground rules.
These rules should explain how shared spaces are used day to day.

For example, decide when the TV can be turned on or how late it can stay on.
You should also agree on how clean shared areas need to be kept.

Clear expectations help prevent small frustrations from turning into bigger issues.
You don’t want tension just because you reach the dishes before your tenant does.

Never forget that the room isn’t yours

This is absolutely crucial. When someone is paying for the room, it’s their room. Yes, it’s still in your house. But it’s theirs until the lease is up. 

And whether or not you’re worried about what’s going on or how they’re treating the room, you can’t just barge in. 

Their space is their space. This is a difficult thing to get used to, for some people, so we just want to warn you about it in advance. 

When You Rent Out a Room, Treat it Like a Business

Renting out a room in your home is a challenge. You need to find the right tenant to live with. You, also, need to understand how this might change the way you use your home. 

And that takes plenty of forethought, preparation, and a serious mindset to make the best of the situation. 

So, keep the tips above in mind – they’ll help you treat your spare room rental as the small business it really is.