Make Extra Money Renting Your Extra Space

By Miguel Dos Anjos 

Extra Income

                For an extra income source into your bank account you may rent the extra rooms in your house. If you have the space, and are willing to put up with some noise this can work wonders. Having room tenants will help you pay your mortgage, or your unit rent, or even allow you to live for free just by doing some managing.

Make It Easy

                A great approach to make this work is to make things as simple as possible. Make all utilities included for your room tenants, and charge a fixed weekly amount. In the case your electricity or gas start getting too high instead of creating a complicated situation, or a fight just raise the rent you charge to cover the new extra specific needs of your tenants. 

                Ideally your tenants will rent your room because they are frugal and will be saving and investing their money, but there is a chance the reason for them to choose to rent a room, instead of their own entire place, is due to poor budgeting. It does not mean they do not make enough money, but there is a big probability they just miscalculate their spending’s. For this reason you want to charge your tenants weekly, this way they will pay you as soon as they get the money.

How Much You Can Charge

If based on your location, size of your house, and size of the room you are renting you decide to charge $500 a month, split it into weekly payments of $125. Or if your tenant gets paid biweekly charge $250 every other week.

Make sure you will be charging enough to cover all utilities. Including all utilities into the rent will require you to do some good budgeting but it will make things much easier than splitting all house bills and having different amounts to deal with every week or month.

Compare how much you will be charging to how much other people charge in your area. You can check on Trulia, Craigslist, or another similar platform this way you will be making sure you are also competitive.

Be on Top of the Game

Decide if you can put up with having other people in your house and if this path of income is for you. Interview people, and search/google for their names on the internet with spelling variations to prevent any later surprises. Set up house rules such as up to what time noise is ok, and others.

Many areas renting rooms is just as fine as renting houses or properties. But some locations the amount of unrelated people in a house becomes illegal after reaching a certain number. Check the laws of your area and obey them to prevent later complications.

If you plan on doing this a lot, have many rooms, and deal with many people keep an attorney in mind, just in case someday you need it someday. Treat people well, with respect, and communicate clearly.

Airbnb 

Another option now a days is Airbnb. To rent your room using Airbnb you will need to create an account with them. Set up your listing. List the amenities you will be providing, and describe your space accurately. List all your nearby attractions and activities. Post good, realistic photos of your space to prevent guest being disappointed. Charge a realistic amount for what you can offer. Check your local laws and regulations.

Any points you can think of that were not mentioned here? Mention it in the comments below.

Thanks for sticking to the end.

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