Can You Rent Out A Spare Room In Your Home?
This post is a collaboration.
Can you rent out a spare room in your home? Who should you inform about taking in a lodger? If you are thinking about renting out a room in your property because you need to make a bit of extra cash, it is important to ensure you go about it in the correct manner. Read on to discover more.
So, can you rent out your spare room?
Most people will have no trouble renting out a room in their home, so long as they inform the right people. If you currently rent your property from someone else, you will need to inform the landlord of your intentions to rent out a spare room and you should get their permission. If you’re the homeowner, you will need to inform your mortgage provider.
Aside from this, there are a few organizations that you need to make aware of your intentions to take in a lodger. This is because your lodger may change your tax obligations. For example, Property Tax needs to be addressed. If you currently live on your own, you could be receiving a discount for certain taxes, and this discount may be taken away once you bring in a lodger. The best thing to do is speak to an accountant who will be able to advise on this.
Make sure the person you take on is financially sound
When you are looking to find a roommate for your home, one of the most important things you need to do is investigate their financial past to make sure that they can afford to pay the rent each and every month. There are a few steps you can take when doing this.
xThe first step is to get proof of the candidate’s employment. Ask the potential roommate for proof of employment; this could be a copy of a contract with their employer, as well as regular pay cheques. If the person is self-employed, a good way to see whether they receive regular work and can afford the rent is to ask for a copy of their tax return.
You should also ask for a recent credit check. This will show whether the person has been arrested or sued, whether they have filed for bankruptcy, and if they pay their bills on time.
Finally, you should get references from previous roommates and landlords, if applicable. They will be able to paint a picture regarding your potential tenant’s ability to pay their bills on time.
Other ways to make money
If all of this sounds too much hassle, there are plenty of other ways to make money today, especially in the digital age. There is no single best way to make money online. From freelancing gigs to selling your belongings and taking surveys, the options are endless. So it is certainly worth looking into this further too.
So there you have it: hopefully, you now know whether you can take on a lodger or not, as well as some useful tips for making money in other ways.