Raising cash in a hurry #11: Take in a boarder
Update May 2009: A recent study in the U.K. found that, thanks to the recession, 5 million English homeowners have considered becoming 'reluctant landlords' by renting out rooms.
When my friend Michael, an inveterate couch surfer, turned up on my doorstep a few years ago, my boyfriend had just moved out, and I was wanting company and needing extra rent money. Thus Michael took up residence on the couch my ex had recently vacated, and I went about adapting to having a roommate who I didn't want to see me naked.
Aside from having to close doors and don a bathrobe more often than I was used to, my new living arrangement worked pretty well--for a while. Michael was paying rent and lending me a supportive shoulder. We had agreed when he moved in to check in with each other after a few months to make sure there were no major problems, and when we did so, there weren't. So Michael stayed on ... and on ... and on, and I commenced to kicking myself on a daily basis for not having set another check-in (or would that be check-out?) date. When he finally did move out after about a year, our friendship had been sorely tested.
The biggest lesson I learned? Sharing living expenses can put more cash in your pocket. However, If you ask someone to move into your spare room--or onto your couch--draw up a lease agreement, even/especially if your prospective boarder is someone you know. Have conversations about how to share living space, particularly if, as in my case, you only have one bathroom. Make sure to outline kitchen privileges, including whether or not you want to share food.
I was unprepared to be a landlady, and I wouldn't do it again in my current living space. If I ever move into a house with a granny unit, I might consider renting it out--as long as the unit has its own kitchen and bathroom.
Money Clips
- HILARIOUS: Warren Buffet Plays Axl Rose in New Commercial - Huffington Post
- ON THE PLUS SIDE: Where Home Prices Are Rising - CNNMoney
- FRICTION: Could China Trade War Put Walmart Out of Business? - 24/7 Wall St.
- PROFILE: Opinionated Auto Industry Insider Dies - FORTUNE
- DON'T LAUGH: More Homeowners Turning to Fake Grass - SmartMoney
- HIT HARDEST: States Hurt Most From Rising Gas Prices - CNBC
- GET YOUR MONEY'S WORTH: Best Cars to Buy Used - CBS MoneyWatch
Reader Comments (Page 1 of 1)
6-17-2008 @ 8:37AM
Pat said...
I recently resumed renting out a room in my house after several years off and it's been a godsend. The most important thing to know about making this work (or even, fun) is to "start as you mean to go on". That is, decide before you even rent the space on places within common space which will "belong" to the boarder: shelf in refrigerator and cabinets, shelf in shower stall, hook in bathroom for towel, etc. Clearly delineate any other ground rules up front. Then relax and forget them! I treat it like a job, and do all the dishes & housecleaning to avoid the stress of waiting for them to pitch in (not laundry, though), also provide a pot of coffee each morning. Then it's like getting an extra paycheck each month for stuff I'd probably be doing anyhow. I've never bothered with a contract, as the above system works for me . . . good luck!
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6-18-2008 @ 2:44AM
Roxie said...
Those were a couple of the TAMEST roommate/boarder stories I've ever heard in my life! Don't EVEN get me started! All I can say, is, that if you're considering this seriously, have a contract, charge a security deposit(unless you've got a houseful of really crappy stuff), and you're probably better off not renting to friends. If you're not acquainted, you can treat this like a business, nothing personal, like Pat said earlier. Otherwise you'll find you have NO privacy and suddenly their all up in your business, and dragging you into theirs! YUK!!! Gives me chills up and down my spine just remembering back. Oh, and, Good Luck!
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6-18-2008 @ 3:20AM
Chris said...
If I ever rent a room in my home, I will specify that no parties will be allowed. No dogs or smoking either. Cats are welcome.
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6-22-2008 @ 10:19AM
felicia said...
My experience renting two rooms and a bath to a friend was a total bomb. She thought she could take over. Then after only two months she called pleading for me to call her mom because she was in jail! Yeah I called her mom and then loaded up all her stuff and dumped it in her mom's driveway! If I ever find myself considering such a situation again there will definitely be a contract specifying everything!
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7-22-2008 @ 1:20AM
Michael said...
Hmmm,I was wondering if that was Michael was Michael Vaughn,famous San Jose poet and general man about town?
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