Advantages of Renting out Your Extra Bedroom

Photo: Lara604

Do you have a bedroom  or other livable space in your home that you could do without in exchange for income? If so, you might want to rent out the space to a tenant. Why?

-First-time homeowners who don’t want to stretch themselves too thin can benefit from the extra income of renting out one or more bedrooms.

-People who aren’t home very often aren’t getting the full value of the home they’re paying for. This might include people who travel frequently on business or work long hours. These people might also be less bothered by having a roommate if they’re largely home just to sleep.

-Assuming you have a responsible renter who does things like keep the doors locked, your tenant can help keep the home safe from criminals simply by occupying it. Having an additional person or two living in the house can mean that it’s occupied for more hours of the day, making it less of a target for break-ins.

-People who want to pay off the mortgage early to save thousands of dollars on interest will have a much easier time doing this if an additional person is helping to pay the mortgage.

-You might need the extra cash because your budget is extremely tight and/or you've lost your job or had your hours cut.

-Taking care of a home, especially if it has a yard, is time consuming and a lot of work. Your renter might be able to help out with the burdens of household chores and yardwork, perhaps in exchange for a small reduction in rent.

Also, people who want to own a home but are daunted by the prospect of living alone and/or being responsible for a large mortgage payment might consider having renters both for company and to ease the financial burden.

For more advantages of renting out your spare bedroom, read my Interest.com article. To learn how to rent out your spare room, read my Financial Edge article.