Renting Out Your House’s Spare Room? 4 Financial Questions to Ask Prospective Roommates
Whether you need to generate more income to pay bills or you want the extra funds to have more money for entertainment purposes, renting out a spare room is one of the ways to accomplish your current financial goal. Choosing a roommate, however, is tricky business. You want someone whose personality jibes with yours. You also want to make sure they will consistently pay you rent; otherwise, why would you let them live with you? Before you invite anyone to live with you, however, ask themthese fourfinancial questions.
What is Your Job?
Knowing what your roommate does for work matters for more than one reason. One purpose of this question is to get a stronger sense of whom this individual is. While you cannot always judge elements of people’s personalities by their jobs, you can learn about them. For example, you may have concerns about a potential roommate who works only part-time because you might wonder if this person can afford to pay the bills. On the other hand, a person with a high-paying job can alleviate those worries.
What is Your Annual Income?
You may feel funny asking potential candidates what their annual incomes are, but this information is necessary for you to know. As the owner of the house, you likely have a strong sense of what it costs to live there and how much money is needed to do so. This knowledge allows you to calculate the necessary income for your roommate to have. When potential candidates state that they make less than your calculated sum, you may need to let them know that this living situation isn’t the right one for them.
Can You Make a Security Deposit?
When you’re renting out a room in your home, you really need to ensure that the renter can make a security deposit. If the renter has no current funds, you must question if this person can afford to live in your home. Another issue is that even if you truly trust the renter, this individual could damage the home accidentally. Then, you will have money to help with the repairs from the security deposit.
How Do You Want to Pay for Utilities?
As you’re entering into this living arrangement with another individual, you should have a strong sense of how you want to split the utilities. In other words, go into the conversation with a plan for how much you want the renter to contribute to cable, heating and cooling expenses, internet providers and so forth. Starting with a solid figure allows for a reasonable conversation.
All of these questions are necessary to ask before committing to any rental agreement. You want to ensure that you aren’t making a financial error, and asking these questions will help you to stay safe. While there are many character flaws you want to avoid when selecting a roommate, one of the more important ones is financial irresponsibility.
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