The 4 basics of leasing out your space

The rental market is becoming huge. Renting out any extra living space you already have is one way to make money. In fact, many people do help meet their mortgage payments by doing this. If you’re going to rent out space, you should take a few steps to protect your sanity. Source for this article – The four basics of renting out your space by MoneyBlogNewz.

1-Think about your market

Make sure you research before renting out any space. Take a look at places comparable to yours on Craigslist, online services and newspaper ads. Look at other places to see what is offered in leasing contracts. Decide how much money you have to bring in. Then, you can decide what your rental price is.

2-Make sure you understand the laws

States and cities usually have laws. These landlord/tenant laws have to be followed. Make sure you know the laws, even if it is only for one room with your house. Most areas have at least one landlord association that offers information on the fundamentals of the law. Landlord/tenant law can dictate everything from what you need to provide as part of your rental to how much notice you have to give before entering the rented area.

3-What about credit scores?

There aren't always people that have great credit. Sometimes credit is an issue. Your job as a landlord means deciding what is required for potential renters. This could contain a credit check sometimes. When looking at a credit history, it will show the history of someone's spending. This involves bill paying. You’ll end up paying between $75 and $100 whenever you run a credit rating though. A credit check is not required to rent your place out. Still, you might want to do it just to make sure the renters can pay for the place. It can be easier just to call references and check employment history.

4-Take a look at the documents with deposits and leases

Make sure you’ve the right documents to rent the place out. Both of you are protected well when documents is there. It can help prove residency and is good documentation. You can find standard rental agreements for state online or through landlord’s associations; read through the agreement carefully and make edits as you see necessary. Being the renter's friend does not mean anything. Make sure you nevertheless get a deposit. If something goes wrong — regardless how good of a friend your renter is — cleaning up after a renter moves out can be costly, and a deposit can pay for that.

Make sure the price of your place is right when considering the renter's finances and documents, even if it’s just one single room. It is very easy to get just a little bit of extra money inside your pocket every month if you do all the work.