How do you rent a room in your house?
At sites like Airbnb.com, spareroom.com, Facebook Marketplace, and Craigslist you can create a housing ad and rent a room for free. But you must determine the following: monthly rent, security deposit, advance rent, moving-in date and rental period. Then, of course, you should upload pictures of the room and the rest of the accommodation in your ad.
You can also include what you are looking for in your future resident. It is a big plus to have as detailed a description as possible. So think about what makes your home unique.
1. Determine a reasonable rent for the room
There are no restrictions on how small or large the room you rent out should be, however, there are rules regarding how much the rent should be.
If you were to charge an unreasonably high rent, your tenant could object and in the worst case, you could end up being liable for a refund.
How much you should take out for rent varies depending on how much you pay yourself, the size of the room and access to other areas.
2. Write an agreement with the tenant
When renting a room, it is important that you sign a contract with your resident.
It must be stated in writing whether the resident may dispose of other parts of the home, such as the kitchen, if furniture is included in the rent and also the rent and the notice period.
It can also be a good idea to write an agreement about certain rules of conduct that you consider necessary, for example if smoking is allowed and if the resident is allowed to have guests.
You can come to certain things together as rules of conduct, but the most important thing should be included in the agreement so that you can prove what you have come to if the tenant should misbehave.
3. Let the tenant move in
Once the agreement has been signed, the tenant can move in and start paying rent.
At the beginning of the rental period, it can be good to set up some common rules of conduct about how you should communicate, how cleaning should go and the like.
Both you and your tenant should feel comfortable with the living conditions and therefore it is important that you communicate.
You should also check out how your home insurance works when you have a resident.
In some cases, you can extend the home insurance so that it also applies to the tenant, otherwise the tenant should take out a home insurance specially adapted for residents.
4. Do not enter the rental room
Renting a room and living with a resident can feel a little unusual from the start. That you respect your tenant is at least as important as that he adheres to the rules you have decided.
You should never go into the rental room or clean there, it is your resident’s private room.
To acquire inherent
Renting a room to residents means that you can save money every month. The fixed monthly costs are split. In addition, you also help to alleviate the housing shortage that is problematic in many large cities around the world.
The difference between renting a room and subletting is that you do not need a permit from your landlord or tenant-owner association when you take in a resident.
However, the requirement is that you must live there yourself at the same time as you lease a room or part of your home to someone else.
Otherwise it counts as subletting and then other rules apply.
Good advice for you who are going to rent a room in your house
Your extra room is in great demand among students and commuters, and by renting it out you both save money and get a new roommate.
Below you will find the most common questions and the most important rules about renting a room so that you can get started quickly:
1. How do you find the right resident?
Of course, when you want to rent a room in a home that you also live in, you should of course also tell who you are and what you are looking for.
It can e.g. be important to you that residents are non-smokers, understand a closed door or want to be social. Make a list of everything that is important to you and include it in the ad description.
It increases your chances of finding the right tenant if you write a detailed ad.
At most sites, you can easily filter out serious housing applicants who match your criteria.
2. How many rooms can you rent out?
You can rent rooms in your home to several residents, provided you live there in the meantime.
To do this in a safe way, it is therefore important that you draw up a written agreement. Make sure that all parties agree on what is in the agreement.
3. The rent
You need to determine the rent for the room based on your actual rent and what counts as reasonable. By this is meant the same rent for similar rooms in similar location, size and quality.
You can either investigate for yourself what other rooms cost in monthly rent or get help from e.g. the rent tribunal. This way you can check that the rent is not too high.
Also remember that there are other expenses such as internet, heating, electricity etc. which need to be agreed upon. Your resident should only have to pay for the actual cost.
4. Should a deposit be taken out?
You as a private landlord may take out a deposit as a security when you rent out a room. The deposit must be refunded after moving out if the room is in the same condition as agreed.
The deposit usually corresponds to one or a few monthly rents (3 months).
5. Do you have to draw up a rental agreement when you rent a room?
It is not a direct requirement that private landlords must establish a written rental contract when renting a room. However, if the tenant requires a rental agreement, this must be done.
It also means security for both parties. The rental agreement states the exact terms of the rental, so you can avoid any misunderstandings and conflicts.
Once you have found your resident, you should jointly fill in the rental agreement and sign it.
Here it is important that you as a landlord have familiarized yourself with the details.
6. Can you terminate the lease?
However, if you rent a room in a home for a limited period, you can terminate the agreement if the resident forfeits their tenancy.
In the event that the tenant e.g. does not pay rent, lets others live in the room, is violent or otherwise destroys things in the property and the like.
You must send a written notice and make sure that your resident has actually received your notice.
If you do not follow the rules, the termination may risk being declared invalid.
A clear lease is an important support
I can’t reiderate this enough, but even if you already know the person who is going to rent a room in your home, it may be wise to write a clear rental agreement.
Rather than expecting that this person will not smoke in the kitchen or refrain from using the shower in the basement, you should agree on this in writing.
To rent a room without conflicts, make sure you include all the critical points in the rental agreement.
Do not miss:
- Who the agreement applies to
- For what period
- What the rent should be
- Which places in the home the tenant has access to
- If furniture is to be included
- Notice period
It is largely up to you what you want to include in your agreement. Detailed leases are a great support when questions arise.
When it is clear in the agreement what the resident is to do in the form of cleaning, there never needs to be a dispute.
How do you sign a contract to rent a room?
You can write your own agreement or use a template when you have a resident in your home. If you are worried that something will go wrong, you can pay for help writing the contract.
Maybe you take help once and then continue to use the same structure for future tenants.
Take the time to understand how the agreement should be written and what should be included in it. You have it again if there should be discussions about what applies later.
What is not in the agreement can be difficult to prove.
Risks of having a resident
The lease is a way to reduce the risks that come with renting out rooms. It is difficult to get away from the fact that some friction will arise between the renter and the resident.
But it is important that you are well prepared for injuries, for example.
Take a look at what applies in your home insurance. You may need to update it to include a resident. The alternative is that the person you rent to yourself obtains home insurance for the accommodation.
Check that the insurance is in place. It is sad to realize that there is no insurance either on your part or on the part of the resident when the damage is established.
A good relationship is very important
In order for it to work smoothly with renting a room in your home, you need a good relationship with your tenant.
The relationship is founded with clear rules and a good lease. In addition, you should work with communication. Do not take anything for granted.
When the tenant has moved in, it is good to have ongoing conversations about how the arrangement works. Misunderstandings can arise and you can sort them out quickly by asking questions and talking openly about what applies.
Also keep in mind on what I said before, that you as the owner of the home can not do what you want with the space you rent out.
For example, you can not go in and clean yourself in the rented room because you think that the resident does not do a good job.
If the resident has his own shelf in the kitchen, you can not pick things from it without asking because you have temporarily run out of something.
In a way, becoming a resident becomes a family member but it is not the same thing and you should remind yourself of this so as not to behave inappropriately.
Having another human being, even if you know the person, in your home is not always a dance on roses. But when the terms have been established and when you have accumulated to this new style of living.
Then you can sit back and watch the passive income roll in every month.
I am not saying this is an easy way to making passive income, far from it, but it’s a huge step towards a path to finacial freedom.
So, what are you waiting for? Start renting!