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My situation is precarious but I am optimistic things will improve. However, I am not sure if I should try to take advantage of this sellers market or rent out rooms in my home. I have two rooms that I could rent out. I am afraid to sell because this is all I have. The mortgage is reasonably priced in comparison to most rentals. The money from the sell would be nice but I am not sure if it is the right move. Once money is gone, it is gone. Do any of you have similar experiences that you can share? I would like to hear from people who are financially independent and lack a support system.
My situation is precarious but I am optimistic things will improve. However, I am not sure if I should try to take advantage of this sellers market or rent out rooms in my home. I have two rooms that I could rent out. I am afraid to sell because this is all I have. The mortgage is reasonably priced in comparison to most rentals. The money from the sell would be nice but I am not sure if it is the right move. Once money is gone, it is gone. Do any of you have similar experiences that you can share? I would like to hear from people who are financially independent and lack a support system.
If you sell in a seller's market, and then buy something else in the same market, you don't gain, you lose because of closing costs etc.
Personally, if you like where you are, I would rent out rooms if you want---maybe start with one tenant and see how it goes. And I'm not sure if you mean,you'd rent a room and in effect have a roommate, i.e. they'd share the rest of the home with you, or do you mean separate living quarters---that makes a big difference.
And personally, if I were renting a room in my home to an unknown person, I'd put a contingency clause in a contract that there be a one-month trial period, in which either party can bow out if it's not working out.
If you sell in a seller's market, and then buy something else in the same market, you don't gain, you lose because of closing costs etc.
Personally, if you like where you are, I would rent out rooms if you want---maybe start with one tenant and see how it goes. And I'm not sure if you mean,you'd rent a room and in effect have a roommate, i.e. they'd share the rest of the home with you, or do you mean separate living quarters---that makes a big difference.
And personally, if I were renting a room in my home to an unknown person, I'd put a contingency clause in a contract that there be a one-month trial period, in which either party can bow out if it's not working out.
If I sold, I would not buy for at least 3-5 years. The roommates and I would share the bathroom, living room and kitchen. I certainly would have a month to month agreement. The larger room is on the other side of the home. We would be able to coexist with minimal interference. However, the smaller room is close to my bedroom. I am afraid it may be too close for comfort. I currently use it as an office. However, the money would be nice.
My friend had a horrible experience with renting out a room. Having a unknown person moving in with you is risky at best. I would sell before doing that. If it was a friend, that's a different story.
My situation is precarious but I am optimistic things will improve. However, I am not sure if I should try to take advantage of this sellers market or rent out rooms in my home. I have two rooms that I could rent out. I am afraid to sell because this is all I have. The mortgage is reasonably priced in comparison to most rentals. The money from the sell would be nice but I am not sure if it is the right move. Once money is gone, it is gone. Do any of you have similar experiences that you can share? I would like to hear from people who are financially independent and lack a support system.
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If I sold, I would not buy for at least 3-5 years. The roommates and I would share the bathroom, living room and kitchen. I certainly would have a month to month agreement. The larger room is on the other side of the home. We would be able to coexist with minimal interference. However, the smaller room is close to my bedroom. I am afraid it may be too close for comfort. I currently use it as an office. However, the money would be nice.
You haven't said how much equity you would get by selling -- or if you don't want to be specific, how long it would last you if you have to use house proceeds to pay rent that is higher than your mortgage payment. After 3-5 years of renting, would you still have enough cash left over for a down payment on a new place. Just some things to think about.
The shared bathroom would bother me, but you will do what you must -- if you are female, I would look for a female roommate. If male, then a male roommate. I think I would rent "the larger room on the other side of the home" because it would give you the most privacy.
Best case scenario would be if you could find at least a friend-of-a-friend-of-a-friend for a roommate. Maybe advertise at church, a club you belong to, at work?
When I was a university student, I rented a room in the home of a total stranger, a woman. A student makes a good room renter (or at least a student like me, not a party animal), because I was never really there a lot. I went home on the weekends sometimes. I was out all day, and at night I'd either be out or studying. I didn't bring other people, friends or anything to her home. It was a small house, and as I recall we did share the main bathroom, but there was a powder room in the basement that I would use in the morning after showering to blow-dry my hair so it didn't wake her up. I really didn't see the owner a lot.
Like a medical, dental, or law school student. Or a student who is both going to school and working. They don't have time to be noisy or running around your house a lot. You just post at a university & interview them.
This^^^^
Look for a student. You can place ads on college campus bulletin boards. Just do month to month leases. Make sure all the responsibilities, the rent due date and what the renter can and cannot use on the property. Parking assignment, amount of noise and how many people they can or cannot have over. The shelf on the fridge with their food, the cabinet they can use etc. Everything spelled out
If it's spelled out nobody can claim I was never told that.
Make absolutely sure you have a lease.
This^^^^
Look for a student. You can place ads on college campus bulletin boards. Just do month to month leases. Make sure all the responsibilities, the rent due date and what the renter can and cannot use on the property. Parking assignment, amount of noise and how many people they can or cannot have over. The shelf on the fridge with their food, the cabinet they can use etc. Everything spelled out
If it's spelled out nobody can claim I was never told that.
Make absolutely sure you have a lease.
If it's two fairly agreeable people I don't think it needs to get to the level of delineating who parks where, noise, friends, or god forbid, whose food goes where in the fridge. I wouldn't want to move in and share a house with someone who had all those rules pre-stipulated. But that's just me.
If it's two fairly agreeable people I don't think it needs to get to the level of delineating who parks where, noise, friends, or god forbid, whose food goes where in the fridge. I wouldn't want to move in and share a house with someone who had all those rules pre-stipulated. But that's just me.
Yup you're right. Two agreeable people can get along. Problem is it takes time to know each other's idiosyncrasies. I wish I could rent to people simply on a word and a handshake and all is well. In fact that's how I started renting. My first rental lease was 1.5 pages. It basically stated the rent due amount and the deposit and the names of the tenants the address and my name. My current lease is 12 pages specific to the properties. It spells out everything. I didn't even used to run background checks. The reason for the lease is to protect both parties. It specifies what the rules are. Sometimes I wish I could go back to a handshake and a verbal.
Unfortunately I need to protect myself and my investments.
But you want to protect yourself and not be the next poster on CD asking what to do about the nightmare LL or tenant that you're dealing with.
I did a "summer student in a special program" rental. She had her half of the fridge, she used my cooking/eating utensils and cleaned whatever she used. No lease. She was downstairs in the basement suite with her own bathroom, den, and bedroom. I had WiFi she hooked into, all utilities included. I was upstairs. We rarely saw each other. It still bothered me that she was in my house - I found out I am NOT a good person to share my house. Never did it again. But no troubles, either.
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