Things To Consider Before Renting Out A Portion Of The Home
If an owner got extra space in their house, they can invest in it to make some extra money by renting it. But there are some steps to follow to make the experience smoother.
Check the local laws, Leases, and HOA rules
While renting the current home, check for the current lease agreement to see if the provisions prevent the current resident from renting the same space to other people. If you are part of the homeowner’s association, confirm it from the HOA so they can allow you to rent the vacant space. Moreover, double-check the local law. They vary from different states. A few cities put heavy restrictions on renting for a short time.
Price the room or unit
Don’t just assume any number for the rent amount. Checking comparable rental rates is a great idea to determine the rent for the space you are about to open. Moreover, many online specialists can offer help to determine rent. For example, Zillow, Craigslist, or Rentometer are some of the viable options to see what is the current market for rent. If you want to rent your room to short-term guests, check Airbnb, or VRBO. Check local hotel rates and then undercut them by 20% to 30%.
Freshen up on federal and state housing laws
Not knowing the law is never an excuse to get rid of the commission. Familiarize yourself with federal and state housing laws before you rent the part of your house. It can help you from future troubles. For example, under the fair housing Act, it’s illegal to refuse to rent or sell homes depending on race, sex, mental or physical disability, religion, familial status, and national origin.