subject: Trouble Paying Your Mortgage? Consider Boarders [print this page] Trouble Paying Your Mortgage? Consider Boarders
Many people have been returning to renting out rooms in order to help them pay the bills, but is it the right thing to do for you? The boarding house has popularly believed to have died out in the early 20th century, but there are still plenty of people taking in boarders to help them pay the bills.
When considering renting out a room, you have to consider whether your personal preferences can handle another person in your personal space. Perhaps you could stand a friend or relative but not a stranger (or vice versa). There is also the possibility that you can tolerate certain "bad" habits, but not others; and then there the risk that your tenant will end up being a problem.
However, the extra few hundred dollars a month can go a long way to allaying these risks and petty annoyances. There is a lot to be said for renting out one or two bedrooms; the cash flow can easily take your mortgage expenditures down to nearly nothing, depending how much extra space you have. With proper management, you can have the dual advantage of having income and having the security of an extra person around the house.
One of the most important things to consider when renting out part of your home is a solid lease and clear, written expectations. You may feel uncomfortable spelling out what, to you, are obvious codes of behavior, but remember that your renters may come from a wide variety of backgrounds. What, to you, is a common code of behavior may not be so to them. One example: a shoes-off-in-the-house rule. So let your renters know in writing what behavior you expect of them before they sign a lease.
Screening your future tenants is a must. Don't fall for hard-luck stories renting a room out is a business you operate for profit, not a charity. Do background checks and call references. Eliminate any prospects who appear to have shady histories or none at all.
Once you have a renter or renters, you must be prepared to deal with the inevitable issues of people breaking the rules, having conflicts with other renters or even requiring eviction. As with all your other dealings with your renters, you should be calm and professional, clearly stating the rules and requiring compliance or asking that the person leave. Make sure that you research landlord and tenant rights in your area before you advertise for boarders; a little knowledge now can help avoid problems later.
Renting a room can be a rewarding income-earner for the person prepared to give up a little of their personal space in exchange for more cash flow. The risks for many are outweighed by the rewards of having extra income that can make paying the mortgage much easier.
