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Spare bedroom? Rent it out, make thousands

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Posted at 10:56 AM, May 25, 2016
and last updated 2016-05-25 13:56:53-04
Do you want a roommate?  
 
You might realize you do after reading this.
 
According to personal finance website Finder.com, spare bedrooms are an untapped gold mine.  
 
Census data suggests that there are 33.6 million spare bedrooms in the U.S., and that adds up to $174 billion in extra cash a year if each was rented for $100 a week according to Finder.com economists.  
 
But it's not always ideal to open up your home to another person.  The site suggests you consider these issues:
    
  • Check with your accountant for the tax implications of the extra income and how to handle relevant tax payments.
  • If you’re a homeowner, check on relevant county or state laws surrounding letting spare rooms.
  • If you’re renting, check if the terms of your lease allow subleasing of rooms, and if there are only relevant local regulations.
  • Make sure that your home insurance policy covers tenants as well.
  • Do careful background investigation of potential tenants. Interview them in person and ask for financial records that demonstrate their income.
  • Request a rental bond and two weeks’ rent in advance - this will offer you some security if your tenant proves unreliable.
 
Bottom line...if it's something you can do, you can easily make an extra $5,000 a year and pay off your mortgage or other bills that much faster!