Do you want to lease out your property but are unwilling or unable to lease it out in its entirety? In this case, renting out a part of your property like a room is the best available option. It offers more flexibility for your own private use of the other rooms and it is much easier to manage when compared to leasing the entire house. You may also consider leasing out multiple rooms, which may be more profitable than leasing out an entire house to a single tenant.
However, before you start renting out your spare room(s), make sure you complete these 6 points.
1. Prepare Your Property
Once you have decided to rent out a room, you will need to go through your house thoroughly and make sure to “renter proof” it. After all, you will be letting potentially complete strangers live in your house; you need to ensure the safety of your belongings.
Here are some steps you should take:
- Remove any valuables, private items or furniture that you don’t want to get damaged by accident.
- Put keyed deadbolts on each bedroom door.
- Remove self locking door knobs to prevent accidental lockout.
- Fix and repair anything that may need it, such as cracks in the walls, leaky taps or pipes and so on.
2. Determine The Non-Negotiables
When you rent out a room, you are essentially getting yourself a housemate of sorts. Considering you will be living together, you need to set some ground rules. Be honest with yourself, if you can’t tolerate smokers, people who throw parties, or pets in the house, then state that clearly in your advertisement.
3. Set The Rent Price
You will need to research and find out just how much others are charging for a room of a similar size in your area. You can go on the internet and get a rough estimation on how much you can charge based in your area and the type of room you rent. You will also need to decide the type of room you are willing to rent out. Remember, if the room comes with an attached bathroom then you can charge more.
4. Start With People You know
It’s wise to start looking for tenants amongst people you already know. Talk to friends, family and acquaintances and ask them if they or anyone they know is looking for a room for rent. Since you already know them, a certain level of trust already exists so you can count on them to give payments on time and to look after your belongings and property with a certain level of responsibility and respect.
5. Filter Out Tricky Tenants
It is important that you screen your tenant to make sure you can get along with them. Like we said before, you are pretty much getting a housemate for yourself so it would be better all around if you get along with them. How can you screen a potential tenant to know whether you will be able to live with them? Pay attention to how they communicate via phone or email. Or you could have a quick meet up and a short interview with them. Don’t be afraid to ask personal questions such as what they do or why they want to live here. Remember, a problematic tenant may cause many problems, which can be much worse than a few minutes of discomfort for asking personal questions.
6. Get Everything In Writing
Once you have found a suitable tenant, make sure that you make and sign a proper written contract. Do not rely on a simple oral agreement, even if you do know them and trust them. This agreement will come in especially handy if, for some reason, you and your tenant have a disagreement. When creating a written lease it is best that you seek the services of a certified legal advisor, and make sure that the lease includes the following:
- How much the rent will be
- The date the money is due
- Whether the renter will pay utilities, and if so, which ones or what percentage
- How you will handle the food, fridge space, laundry, and common areas
- Any other concerns you have (cleaning, parking, quiet time, etc.)
Having everything written down keeps everything well documented and helps avoid any confusion in the future.
Want to know more about renting out property? Talk to us, send a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.
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