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Spare bedroom? Rent it out, make thousands

Posted: 11:56 AM, May 25, 2016
Updated: 2016-05-25 17:56:53Z
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!

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