Posted on February 13th, 2017
Each one of us undergo some or the other constraints in life. These constraints may be economic, social, or others. The person who best employs his available resources emerges as the winner. Your house is one such resource at your disposal and has the potential of generating income for you. Even if the house cannot be spared for rent as a whole, the option of a “Single Room Renting in the House” works in your favor.
This concept is drawn from the values of “sharing”. Everyone is benefited by contribution from each member and the cost is minimized by being divided among all. We will discuss here some of the basic reasons, advantages and considerations to be aware of when exploring the option of “Single Room Renting in the House”.
Frequent transfers are a norm in the military establishment. The US military families have to undergo multiple postings during their service years. This constant shift doesn’t allow families to settle down. Sometimes the servicemen do not shift their family and decide to attend the posting alone. This is the most common case where demand for single room renting arises as the serviceman cannot spare enough money nor require a big space to live as they have to run expenditures at two locations.
Also, the bachelors living away from their families don’t require big spaces and can save a bounty by staying in single rented room in the house. These customers create demand for single room renting thereby creating a market for “Renting a Room in Your Home”. The underlying reason for this is the substantial cost saving which emerges in a single room renting vis-à-vis renting a complete house.
Another major advantage of a single room renting to the tenant is the easy availability of necessary households. Since a family (owner) is already living in the house, all the required households are ordinarily available and the tenant is not required to invest in buying these items.
Getting a single room on rent in a house is not only cheaper but also involves lesser formalities. The duration for stay can be easily altered. The security deposit is low and the liability towards maintenance is limited as the owner is already taking care for that. The documentation can also be kept minimal and depends upon the understanding between the owner and the tenant.
As an owner, renting a room in the house adds to the income and allows meeting other necessary expenditures which in the absence of such additional income would not be easy. Owners generally pay off their mortgages with these additional incomes without compromising on the ownership neither of the house nor by sparing the complete house for rent. The household expenditures are also shared thereby indirectly contributing to owner’s wealth.
Renting the room in the house gives both feeling of safety and companionship. There are new members in the house and in case of any problem there will be more hands to help and more eyes to be watchful for the safety. Military members have shared their items in the service for long and value the feeling of camaraderie.
Sharing a house with them is like reliving a past period. They can prove to be your great friend and support in social circles thereby giving you both economic and social backing.
Abiding by the applicable laws is important to avoid encountering any legal block. Before you go ahead with renting the room ensure the following:
This homework on applicable laws will ensure that none will be entitled to obstruct your renting process.
Decide on which room you are willing to rent. Make sure that this room involves minimum access to your family rooms and is capable of being separated in terms of outside access and has separate bathroom areas. This will help maintaining your privacy and give space to your tenant as well.
Decide the rent on the basis of prevailing rate in your area and the access to amenities provided in the house. Make sure the rent is fair with respect to the room area, build, features and associated factors like proximity to military base, university, hospitals etc.
Try gaining access to large number of customers which will help you select the most suited tenant. Advertise on the leading rental websites and specifically on those associated to your target customers (www.militaryforsaleforrent.com in case of military personnel). On these websites you can advertise your room for rent by giving its details and putting photographs along with your contact numbers. With the advent of information technology and the ease it brings through speed of transactions, websites are today’s biggest platform for reaching to new people and meeting their needs.
When you rent a room in your house, you are compromising on your privacy. You will soon be involved in frequent encounters even for smallest of things. It is therefore important to make sure that the two minds of the prospective tenant and the owner should match each other. It should not happen that for generating a small income you end up compromising a lot. Compatibility has to be checked before renting out the room in the house. Say if the owner cannot stand shabby setup but the tenant doesn’t care for it, this case will not be suitable for the sharing of house to happen.
It is very important to see that the person going to live with you should not be a threat. The tenant will soon know some ins and outs associated with you. So, it is important that you must conduct a thorough background check for the associated member. Taking a police record and verifying his past will ensure that you know the person and have a fair idea of perceived risks from him if any.
To successfully run this model of “Renting a Single Room”, it is important that you develop a system or guidelines for it. Once the tenant starts living in the house, it will be important to develop a healthy relationship and carrying forward the period of togetherness as per the plan. Remember, living together with people may bring joy if things are organized but may also become a cause of distress if things start going out of control.
Devise a mechanism of how and when the appliances and structures in the house will be put to use by the owner and the tenant. Put a diary for maintaining of some records if there becomes a need for it. Decide on visit of friends, consumption of alcohol, pets, smoking etc. More planned the working better will be the outcome. Give due respect to both yourself and the tenant. Make sure that the basic principle of “Mutual Benefit” under the “Sharing Mechanism” is upheld for both the owner and the tenant.
Once you have decided on above parameters, choose among the prospective tenants who have shown interest in your offering. Enter into a legal agreement with the tenant giving details on the room area, applicable rent, period of tenancy, access to households and associated conditions in case of breach. Your deal closes with the signing on the dotted lines of the agreement and you have generated an additional source of income for meeting your needs.
We hope this article gives you an insight into the basics of “Renting a Room in the House”.
You might be interested in reading about, how to rent your house quickly to military personnel?