Rent a Room in Your House:  Follow These 5 Steps for Maximum Protection

Having a rental property is very different from renting a room out in your house. When you rent out a room, you will be sharing space with this person.

Renting out a room in your house requires even more scrutiny of potential roommates because you share a home with them.

Step 1: Price Your Room Competitively Before you decide to take in a roommate, you should research how much money you can charge for rent.

Step 2: Be Specific in Your Room Advertisement The easiest way to have your notifications light up after posting your ad is by being vague.

Step 3: Ask the Right Screening Questions Once the ad is active, people will begin calling you. Prepare several questions to ask them to get a sense of who they are and if they would be a good fit for you.

Step 4: Have a Solid Rental Agreement Make sure you have everything in writing. You want to make sure all your dealings with your roommate are in written format.

Step 5: Treat This As a Business Venture Treat the agreements you have in place with respect. When the roommate pays late, charge the late fee.

Having roommates who live in your house is not easy. However, being a landlord can be great because it allows you to make passive income that requires little ongoing work.

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