Sharing a House
Your House Can Make You Money
Successfully Living with a Roommate
The problem? You're a little short of cash each month. Your mortgage payment is too high, but you can't sell or refinance your home. One potential solution is to rent out a spare bedroom.
Does it seem like a strange idea? It shouldn't. Many of us are stuck in our homes. We can't sell or refinance because we owe more than the house is worth. Each month the mortgage payment squeezes, but there's no easy way out.
And, our homes are much bigger than they used to be. The average new home built in 2010 was over 40% bigger than one built in 1973. (http://www.census.gov/const/C25Ann/sftotalmedavgsqft.pdf) That means utilities and upkeep cost more.
With a bigger home, there's a good chance that you have some spare space. Perhaps you have a spare bedroom or one vacated by your kids when they went off to college.
You could be sitting in the solution to your problem! Renting out a spare bedroom could solve both your cash flow and your oversized home problem. Let's look at four reasons why you'd want to take in a renter and seven suggestions on how to do it without creating problems.
Sure, there are advantages, but if you're like most people, the thought of bringing someone into your home is a bit scary. There are potential pitfalls. Here are some suggestions for making the transition a smooth one.
You may have never thought of yourself as a landlord and never pictured renting out a portion of your home, but if you want or need to stay in your home and need a little extra cash each month, becoming a landlord could be a great solution to your problems.
Gary Foreman is a former financial planner and purchasing manager who currently edits The Dollar Stretcher.com website and newsletters. He's been featured in MSN Money, Yahoo Finance, Fox Business, The Nightly Business Report and he's a regular contributor to US News Money and CreditCards.com. You can follow Gary on Twitter or visit Gary Foreman on Google+.
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