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There are also stipulations by your lender-some mortgage agreements do not allow renting of any kind; and, in this case could also apply to your home owners insurance policy as well.
It sure does create issues with homeowners insurance . If his roommate steals , vandalizes , arsons or has a law suite he is considered a household member .. in the case of theft or arson you have no coverage .. in the event of a liability your insurer covers him ..
This is why when you have a real rental you get landlord insurance..it breaks the link so they are not a household member and considered and insured
I know that 95% of the world puts no stock in Astrology, but I used Astrology to select someone to rent a room in my house back in 1999, and he's been with me eversince. I was living in Las Vegas, at the time, and I wanted to make sure I didn't end up with a gambling type or someone that didn't have their feet on the ground. Lots of those people in Las Vegas.
I think this is the usual outcome. It doesn't end well. Much worse could happen and has happened.
MANY years ago (when rates were 14.5%) we got a roommate to help with our crazy high mortgage. She was employed at the same real estate company where I worked. I won't bore all with another long-winded story, but she got one of my credit cards and charged over $2500. We called the police (she was charged with a felony). Never occurred to us to call insurance when there was a two week period of not knowing who/how used my card. The irony in this: the Magistrate would not let us evict her without giving 30 days notice. Luckily, she only came back to get her belongings.
On the flip side, there's a client that I actually met on this board, where I have financed at least half a dozen properties over the years with me working for different employers. He would buy a home, move in, rent all the rooms, giving up the master to get more rent. All tenants we on a tight lease. After a year living there, he would lease out the master and buy another owner occupied home, wash, rinse, repeat. I want to say he is up to 9 or 10 homes. He and his wife now live in a nice single family, with kids. (He was single when I met him, and when he got married, his wife was all-in on the plan and helped him manage their tenants and properties). His wife is no longer working (she didn't give up a throw away job, either, was well over 6 figures). Most of their homes are also sitting pretty with equity. Oh,he got his RE license along the way. Not everyone can approach building a RE portfolio this way. But after 5 or 6 years of executing a disciplined plan, his retirement is set. Only thing is, they won't reach retirement age for another 25-30 years, he started his plan in his mid 20s.
I think he should teach a class on this, but he would have to charge well for the class to make it worth his while. His first piece of advice is to get a RE license.
I was thinking if I got a 3 bedroom house, I could rent out a room, but I’m not sure how the demand would be and the trouble.
I had a similar thought when I got my place. However, when I started the process i found it to be too much trouble.
I didn't have anyone in mind and most of the "stranger" potential roommates were trouble. They had obvious issues and I couldn't bring myself to live with them.
I would only do it if you have people in mind to live with you.
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I think he should teach a class on this, but he would have to charge well for the class to make it worth his while. His first piece of advice is to get a RE license.
I believe there are a couple of real estate websites that give detailed instructions. I don't have the link now but I had looked at them when I was considering this. That person's advice was to make sure you purchased a place in an area with HIGH DEMAND to live in.
One lady though, I met her and she seemed nice. I asked her if she has any pets (I have a cat) and she said no, I was like alright. we met, I liked her, told her to come out to house. She came with boxes to move in and stupid big ass service dog (she claims) I was like, not a chance. I closed door on her and told her to leave. she was like im going to sue you!! etc etc. I have all the correspondents between us claiming had no animals, no service animals etc. just a garbage person. I am not letting a dog eat my cat, and she told me he's fine being locked in a room all day. efff no. go away. (while I do have a massive fenced in back yard) she wasn't going to be using it for a dog. I have a little cat door, my cat comes and goes all day. but end of rant, nobeuno.
Be careful is all I have to say, she knew she was wrong, and I am allergic to dogs as well. I would of gotten it thrown out in court. just a trash non sincere person though tbh. I didn't take a single dollar from her, I think she would of had a case if she had paid me for a month of rent then maybe they could of let her stay 30 days to evict her, but nope. Didn't take a dollar from her.
Not sure what state or area you're in, but I think you're more at risk than you realize of running afoul of tenant laws and ant-discrimination laws. Be careful. The number one thing to making this successful is picking the right tenants but all too often laws make that very hard to do.
If you really want to buy a home and rent out part of it I would suggest buying a duplex or a two flat. That way you can live in one unit and rent out the other unit. This will help pay your mortgage, plus insurance would be cheaper and the renter would have a separate living space from you. In this situation, their rent might be enough to pay your entire mortgage payment for you!
I do suggest to do your homework when it comes to becoming a landlord. Make sure you do background checks and employment checks on people so you don't get screwed!
Not sure what state or area you're in, but I think you're more at risk than you realize of running afoul of tenant laws and ant-discrimination laws. Be careful. The number one thing to making this successful is picking the right tenants but all too often laws make that very hard to do.
I have the right to deny anyone, I dont have a lease or a contract so thats different than standard renting rules/applications. I was reading up on this, I dont do regular filtering or actual applications so, what I gathered its no different than letting a friend rent with me, I can deny those qualified to those I prefer as its not a written or binding contract or lease in anyway.
Could be wrong, but she didn't even make it in my door and I didn't collect money there was no lease or obligatory signing at all. I have every right to tell her no for any reason I want at that point (even maybe I changed my mind, dont want a room mate)?, im just not going to rent it out at this moment yeah?
I am not a lawyer, just an honest hard working guy trying to live with good people. I cant imagine going to court and the story and everything including me having allergies to dogs getting her any right to any money from me. Too many people out there trying to screw them over ie. that girl with the pooch lying to get her benefiot/way. not today Felicia.
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