A growing number of homeowners have made a wise choice to accept international students and guest for short term lodging. The spare room rental boom makes it easy for them to cash in especially in this day and age. Students ditching expensive apartments to cheaper off campus housing can be more economical way to go. On the other side, renting your room to students can be an attractive little earner.
The potential influx of international students taking courses all over the United States’ major universities plays a huge role for the scarcity of cheaper accommodation. Should you wish to become part of the myriad number of room providers, if so, these are the things you should learn before jumping into the bandwagon.
Assist your cost and earning
There are a lot of online services which offers free ad listing to landlords, but the downside of all this so called “free room rental and sharing sites” is the vulnerability to fraud and scam. Although not all, as the saying goes, ‘an ounce of prevention is worth a pound of cure.’
There are a wide range of choices to get listed and one of them is Roomdock.com, a roommate finder website. The website stood up among its competitors, as it offers a unique platform for international students who are looking for rooms to rent as well as for people seeking to lease their spaces.
According to their FAQ page, their basic membership is free and is limited to 7 contacts/leads only. In order to post your listing, you need to be a registered and verified user. Set your own price, upload your room pictures and it’s good to go. Easy wessy right?
So if you’re better with free listing, then basically you would want to know how much would you charge? Although it varies per state, in Seattle, Washington for example, you can get not lesser than $130 a week, including basic utilities as per Roomdock listings below.
• $425/mo – Rooms for rent (Perfect for students and young professionals)
• $550/mo – Rent a room in a cute, quiet house in the suburbs.
• $500/mo – Room Available Sept 1st
• $650/mo – MASTER BEDROOM in PENTHOUSE Apartment
Keep your rental fees low and reasonable as possible for people and students looking for a room to rent. You can add up more perks with their $130/week, basically you can throw in breakfast just to keep your borders delighted.
Analyzing the Risk involve
The common risk involves for home owners renting their rooms and spaces are community regulation and homeowners’ association guideline violations. When your community allows home rentals, basically it will allow room sharing, however, these may depend on your location.
There are places that limit the number of unrelated tenants occupying a flat, so it is wise to check your local community for such regulations to avoid getting caught up with the law. Hoteliers’ license may be needed prior to the operation, some are required to pay occupancy tax. You are also required to detail your additional income on your annual tax declaration.
Eviction if necessary should be done in a peaceful manner. Just like any other renters, your tenant has rights as well. Treat them fairly and communicate very well to lessen arguments and troubles. But in cases of rental disputes, prosecutors tend to side more on the landlords.
Accidents may happen as never intended, eventually will result to the most awful scenario you might ever think of, such as fire, injury, or death. You may be losing a battle if it’s not covered by your standard homeowners’ policy, so it’s not a bad idea to double check with your insurance provider.
Mind your Insurance policy
Your $1000 extra income from sharing your unused spaces may not equate when a disaster happens. Your homeowner’s insurance policy might be too ambiguous to rely on. Single rental insurance may cover only a short period of time, something you need to ponder.
On the flip side, a lot of landlords are disposing off with a standard homeowner’s policy for commercial insurance – to say the least, it would be your best option to get the most protection for your extra business. It may cost you an added $400-$700 per annum, but surely will cover your paying tenants.
Renting out a room might pose some risk and inclusive dangers, but if meeting great personalities and new culture keep you ecstatic, these are worth it. After all, room-sharing nowadays is all about building great friendships and connecting with people of different classes whom you share the same personality with.