10 Tips To Make the Most Out of Renting Out Your Spare Room

If you’re looking for a way to make some extra cash or just fill out extra space, then renting out a room is a fantastic option. Finding a roommate has a load of benefits, from helping you to pay off your mortgage quicker to saving for a vacation.

Here are 10 top tips to help you make the most of renting out your space.

Top Tips For Making the Most Out of Your Spare Room

1. Research the Legalities of Renting Out a Room

Renting out a single room might seem easier than renting out a whole house, and that’s true in many aspects. However, it’s important to research the legal requirements before you jump into renting out that spare room that’s been gathering dust.

Where do you live? You might find that there are local laws and regulations for both short and long-term rentals, depending on your area of residence. You may need to apply for a license or notify your mortgage provider of your intentions.

The important thing here is research. Take the time to look into tax implications, zoning laws, and any other legalities you might need to know about when renting out your room.

2. Set Expectations on Living Arrangements

It’s important to know exactly what you plan to offer to potential tenants and roommates. Will you furnish the room in preparation? Is there an en-suite bathroom? What areas of the house can they access? It’s normal for roommates to have access to shared spaces such as the living room, kitchen, or backyard.

Again, you may need to research before coming up with the answer to these questions. What are other homeowners offering? This will help you set clear and realistic expectations.

3. Make Sure Your Room is Ready For Renters

Attracting reliable roommates at a good rate starts with advertising a well-maintained room. Before you post your listing, spend some time to bring the room up to standard. This could involve refreshing the walls with a new coat of paint, deep-cleaning the carpets, and investing in new furniture and good-quality bedding. Although you don’t need luxury furnishings (unless that’s something you want to offer), prioritize comfort. We recommend ensuring your room has the basics, such as a bed, a wardrobe, and a desk if there’s enough space.

Additional elements, such as blackout curtains and a strong Wi-Fi signal, won’t do your listing any harm, especially for remote workers.

4. Set the Right Price

In order to set a fair and competitive price, you need to research room listings in your area to see exactly what they’re offering and how much they’re charging for it. Keep an eye out for info such as:

• Is the room en-suite?
• Does the property come with a parking spot?
• Is there a garden?

Price according to your own offerings, but keep in mind that setting too high a price might scare potential roommates off. On the other hand, pricing too low can mean you lose out on money. Researching beforehand will help you achieve that delicate balance.

5. Keep Your Listing Clear and Honest

Many people who are renting out their property for the first time don’t know how to craft a good listing. Or, they go the route of trying to make it too salesy when, in actual fact, a good listing is honest. Transparency builds trust, and if you misrepresent your room’s offerings, then word will soon get around that you can’t be trusted.

Talk about what’s included, from Wi-Fi to laundry access. Does the rent cover bills? It’s also good to highlight any amenities in your area, such as public transportation, supermarkets, and even cafes.

When it comes to uploading photos, make sure they’re high-quality and show the room in its best light. Grainy, dark images won’t inspire trust.

6. Post Your Listing on a Trusted Platform

If you want a reliable roommate, Craigslist and Facebook Marketplace won’t cut it. You need to post your listing on a reliable and trustworthy website. There are specific platforms out there designed for room rentals, such as www.spareroom.com. Spare Room offers everything from moderation to direct messaging. Posting a listing is quick and easy, so you can get started on finding a roommate right away.

7. Choose the Right Roommate

Choosing the right roommate is so important. The last thing you want is to accept a roommate, find out they’re a bad fit, and have to start the process all over again.

Unlike full property rentals, you’re not just obtaining rent. You’re inviting a stranger into your home, so it’s best if they match your personality, lifestyle, and habits. Make sure to ask for (and check) references, and conduct informal interviews. Ask them about things like noise, their work hours, and their cleanliness.

But the most important thing: always trust your gut. Even if a roommate is giving off green flags, they might not be the perfect fit, so don’t rule out your intuition.

8. Document in Writing

Even if your roommate arrangement feels informal, it’s important to put a rental agreement in place. It doesn’t have to be complicated. Draw up a simple contract that covers payment due dates, rent amount, and what happens if either of you wishes to end the agreement. You can even include house rules (more on that in a moment).

The agreement should benefit both parties.

9. Set House Rules

Although sharing your home can have many benefits, it’s also a big adjustment. However, you can make things much easier by setting house rules with your new roommate. This can include expectations around:

• Guests (especially overnight guests)
• Noise
• Cleaning
• Shared items

The sooner you have this conversation, the better (and the less awkward) things will be. You don’t want to have to set house rules three months down the line.

10. Communicate With Your New Roommate

Communicating with your new roommate is so important to making the most out of your situation. You don’t have to be best friends (unless you want to), but checking in with them will go a long way toward building a good bond. It’s important to make them feel comfortable without smothering them. Respect their privacy, but don’t leave them completely alone.

Conclusion

A lot goes into renting out your spare room, and not many people realise it. Although it’s a fantastic way to make some extra cash, you’re also inviting a stranger into your home. That’s why it’s so important to be prepared. Make sure to research the legalities of room renting, and don’t forget to choose a reliable platform to set up your listings. Hopefully, our tips above will help you feel more confident and comfortable making the most out of renting out your space.