Renting Out an Extra Room

When you own a condo, one thing that you will want to do will be to look for different ways to save money or make some extra money. One thing that you will be able to do while you are living in your condo will be to rent out an extra room that you might have. If you have an extra room in your condo right now and would like to make some extra money, consider making the necessary home improvement changes and start renting out that extra room to someone who will be able to afford your rent. Just make sure you take all of the steps to protect yourself when you do this.

There will be plenty of risks that will be involved in renting out your extra room while you own the condo that you live in right now. You need to know all of these risks to ensure that you do not fall prey to any of them. If you understand the risks involved with renting your room out to a tenant, you will be better prepared for this venture. Take the time to do your research and understand everything that goes into renting out a room. One thing that you need to do research on will be the laws in your state regarding this type of venture.

First Steps to Take

If you have permission to rent out your extra room and understand all of the laws in your area, there will be some first steps that you will need to take to ensure that you are completely ready. One thing that you will need to do will be to understand who the person is who might be renting your room. If you understand everything about the person who might be leasing your room, you will be less likely to deal with many of the risks involved.

You will need to ensure you do a background check of the person who will renting your property. There are different background checks that you will need to perform, but they will all be dependent upon the laws in your state and region. The first background check that you should perform would be a criminal check on the potential resident. This will help to ensure that you do not have anyone who might have a criminal past living with you in your condo.

The next background check that you will need to perform will be a credit check and work history report. This will help you figure out if the person who will be living with you will be able to pay the rent on time. It will also help you figure out if the person who might be living with you will have the money to pay you every month. If the person does not have a good work history and frequently moves jobs, it might not be a good idea to have them live with you. The same goes for their credit history since that will be able to tell you if they frequently make late payments or if they miss payments.

Renting out an extra room will involve some extra work on your behalf, but you will be able to reap the rewards in the future. After all of the different background checks that you can perform, you should also consider just meeting with the person for a period of time. Get to know the individual who might be living with you to see if you could be good roommates. Always make sure that you create a lease to ensure that you lay out all of the rules that your tenant will need to follow.

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