Renting Out a Room

Before you rent out a room, you need to understand some basic rules and laws about how to act like a landlord.  Not only do you want someone who is trustworthy and will pay their rent on time, you need to find someone you can live with.  America Now News.com has tips on how to protect yourself and make sure your landlord experience is a smooth one when you #RentARoom.

First of all, make sure you do a criminal background check and a credit check.  Both are important because you want to make sure your potential renter is not a criminal and you want to be sure that they have a trustworthy payment history and can pay rent on time.  These checks can be expensive, so be sure to factor the cost into your application fee.  Don't allow renters to roll the cost into their first month's rent because if you decide not to rent to them, you won't get paid.

Ask for references, preferably from past landlords.  Keep in mind people will probably provide references they know will put in a good word for them, which is why the criminal background and credit checks are so important.  

Once you're ready to offer a lease to someone, go over all the rules of the house with them, from where they can store their food to what chores they're responsible for, as well as any other rules like can they have overnight guests, where should they park, etc.  

As far as the lease itself, be sure you have a thorough lease that covers all eventualities, from damage to moving out early.  You also might want to consider a short-term lease to start with, just in case your relationship with your renter goes sour or you decide you'd rather live alone.

Finally, make sure to check all applicable laws for Texas, Austin, and even your local neighborhood.  Some HOA's have rules about how many unrelated adults can live together in a single abode, and even the city of Austin is considering a law that would limit this as well.  

Need help finding an #apartment with room for others?  Give Apartment Experts North a call today at 512-339-4411!

Protecting Yourself When Renting Out a Room

Renting out a room is a great way to earn extra income to pay your #apartment rent or to help cover the mortgage, but you need to protect yourself. Check out Investopedia.com's advice for renting out a spare room and make the transition to landlord a smooth one. 

First of all, if you are a renter, make sure your lease doesn't prohibit sub-leases, many do.  If you own or you have no clause prohibiting sub-leases, then you can explore renting out a room more in-depth.

Decide exactly which room or rooms you are going to rent out and make sure the space is ready.  Think about practical considerations like what parts of the property your tenant can use, will any furniture be provided, and where the tenant will park.  If you want to charge the going rate for rent in your area, you need to match other properties as far as the quality of accommodations.

Make sure your tenant will be safe and comfortable in their home.  Broken items or noisy neighbors that may have been merely annoying to you can cause a tenant to move out or sue you if they get injured.

Speaking of worst-case scenarios, make sure you have enough insurance to cover you if anything unexpected happens on your property to your tenant or their guests.  Also, if your home was built prior to 1978, be certain to follow laws regarding lead paint disclosure.

Make sure you properly vet and screen prospective tenants by conducting criminal background and credit checks.  Once you've found the perfect person, make sure both parties sign a lease agreement that lays out both sides responsibilities and rights.  

Need to downsize so you don't have to take on boarders?  Apartment Experts South can help you find the perfect apartment, just give us a call today at 512-416-8100.