Renting A Room For Extra Income
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Renting a Room for Extra Income
Summary:
I made a $7,000 annual profit by renting out rooms in my home while living there. Here's how you can do the same.
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Thinking About Renting a Room?
Years ago, I discovered the financial benefits of renting out rooms in my three-bedroom mobile home. By renting out both additional bedrooms, I earned thousands annually.
Cities with high housing costs often have a strong demand for room rentals. Single individuals frequently share apartments, facing challenges like splitting bills, late rent payments, and utility disputes. When they find a room in a welcoming home with included amenities like local calls and cable TV, it becomes an attractive option.
How to Rent a Room
Include All Utilities:
Bundle utilities with the rent to prevent disputes over payments and usage. Cancel long-distance calls and use a phone card, offering only local service. If utility costs rise, adjust the rent accordingly, but avoid shared expense arrangements.
While many grapple with landlord and roommate issues, my renters remained satisfied over the years. They faced no additional household bills and no financial disagreements. Rent was collected weekly or bi-weekly, aligned with their pay schedules, eliminating the need for monthly budgeting.
Dealing with Regulations:
Though some areas have regulations against renting single rooms, these are often unenforced and increasingly challenged. It's difficult to justify restrictions that allow a large family but not a household of unrelated individuals.
Setting Rent and Finding Renters:
Check local ads to determine market rates for room rentals. If room rentals are popular, a two-day ad can generate numerous inquiries. Weekends are ideal for placing ads.
Selecting a Renter:
Trust your instincts and prepare a list of questions. Key points include their job, contact number, and an emergency family contact.
House Rules:
Establish clear house rules to avoid misunderstandings. Personally, I disallowed pets, indoor smoking, and late-night noise. Each tenant was responsible for their own dishes and maintaining cleanliness in their space.
Potential Profits
In Traverse City, Michigan, decent homes could earn $100 per week per room. Renting two rooms could generate $10,400 annually. With minimal impact on household expenses, this income is largely profit. If you don't mind having company, renting a room or two can be a lucrative venture.
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