Tips for Renting out your Spare Room
Homeowners coming to terms with their financial difficulties must make some tough decisions and sacrifices. Other options for raising a little extra cash could be renting out your spare room, if you have the space. This method will not suit everyone, but it could offer some much needed respite and provide another source of income to pay off your monthly mortgage installments.
Making Contact
Firstly, you will need to understand the legal aspects in taking in a lodger, so contact your mortgage provider to ensure the terms and conditions of your loan allow you to rent out your spare room. Be sure to let your home insurance company know of your decision, because you might have to apply for extra cover. Make sure your home meets safety guidelines, and you will probably have to install fire extinguishing equipment and smoke alarms.
Friends are Best
Choosing the ideal lodger could prove to be a tricky business, because there will have to be a certain amount of trust involved. Finding someone you already know and trust, is the first port-of-call for a homeowner. An acquaintance or a friend of a trusted friend may be the best move, but you might have to settle for a complete stranger, get references and check them. Make sure you are open-minded to all options or don’t even consider the move. If you cannot find a suitable friend to rent your room to, advertise in local newspapers and on websites. Make a shortlist first, and then decide to interview the potential lodgers face-to-face, because you can pick up interesting vibes on first impressions. If you are worried about letting strangers live in your house, invite a friend along to the interview to help you choose. Trust your gut feelings, because they are usually right.
Drawing up the Plans
Drawing up a written agreement for what is expected of the lodger and yourself is a very important part of the process. Most disputes result from rent payments, so be sure to cover this aspect immediately.
Terms and Conditions
Clauses you should cover in the terms and conditions include rent price and deadlines, which room the lodger will be staying in, services you can provide, agreement and notice periods and any other clauses that suit your own unique situation. Last but not least is allowing your lodger the right to do whatever they want in the privacy of their room, as long as it is not upsetting anyone and is legal! Try and keep the peace at all times, because you will be living with this person, and the last thing you want to do is alienate them.