Tips on Renting A Room For Extra Income

With the economy as it is and the job market in a bit of a slump, people are doing whatever they can to save a few dollars or make a few extra. Ebay, Craigslist, and similar sites are doing very well as people try to sell their belongings and long-kept valuables that are now antiques or collectibles. Hard times usually bring about creative means to make ends meet or to supplement regular incomes. One avenue explored by many homeowners is renting a room in their home; either to a friend or oftentimes a stranger. This can be beneficial to both parties or it could be a disaster for either or both parties.

There are many things to be considered for both the homeowner and the renter in this situation. The renter is taking a chance that the homeowner is able and willing to compromise a bit of his privacy and accommodate another person living there. The homeowner is taking a chance that the renter is willing to adjust his personal actions and behavior to adapt to the homeowner’s rules and way of life. Personalities are an integral part of the mix and strong examination of that element needs to be considered. Both parties may have to make compromises that could have a considerable bearing on their daily life. 

RENT

Is the rent due date compatible with the income needs and availability of both parties? If the renter only gets paid on certain dates or days, or if his income is based on commission and reliant upon the renter’s sales performance, will he be able to meet the due date every month? If not, is the homeowner flexible? Can he be, if necessary? How will this impact the homeowner’s situation? Will it affect his ability to pay his own bills?  

Both parties need to have sufficient flexible resources available to cover expenses in emergency situations. The homeowner should make sure the renter has a secure income. Due diligence suggests that, if possible, the homeowner get permission to call the renter’s employer for verification of his income. In addition, seeing a copy of the renter’s pay stub for 2 or 3 pay periods would not be unreasonable. If possible, make a set date for rent payment. And detailed receipts are strongly recommended.  

It is customary for the renter to pay, in advance, at least one month’s rent and an additional security deposit equal to one month’s rent. This is primarily for the homeowner’s protection as he is the one who stands to lose more if something goes awry.  

PERSONAL PROPERTY  

Both parties need to ensure that the renter has sufficient room for his personal property, within reason. If the roomer is renting a room, there should be nothing inside that takes away from the renter’s ability to add his own items and feel comfortable and safe. The room should be able to be locked for privacy. That being said, the homeowner should have no reason to enter the renter’s space without the renter’s express permission, whether the door is locked or not.  

If the room is furnished, make sure that any damaged items are acknowledged by both parties. Pictures of any damage would be helpful to ensure correct assessments if any questions arise.  

LIFESTYLES  

Both parties should take a careful analysis of the others clothing, grooming habits, condition of vehicle, and anything that provides information on their prevailing lifestyle. You can get a good idea of a person’s hygiene, personal habits and life choices from their appearance and how they speak and behave. The homeowner’s lifestyle and habits are easier to recognize immediately, but the homeowner requires more time to properly assess the renter’s peccadilloes, quirks and personality traits.  

It’s crucial that both parties have the willingness and ability to communicate effectively and cordially. Spend a couple of hours talking over a cup of coffee. If alcohol is or isn’t a part of your life, that should be discussed. Whether guests are allowed may also need to be considered.  

Sharing space involves more than just being there together. People need to be respectful, responsible, and willing to compromise and cooperate.  

This article was contributed by Jane Sander from Debt Management. Get more financial advice from her site, like how to deal with credit card debt problems.

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