Leasing that spare bedroom in the house can be a good way to make a profit or extra income to help pay the bills. It’s not that hard to find someone willing to rent out a room. However, we’ve seen and heard enough horror stories to know that having a tenant in the house may not be quite so good. Yes, there are risks in having someone who we hardly know live in our house. Even if we rent out the room to a relative, potential problems concerning money and peaceful co-existence are unavoidable. In order to minimize or even avoid these problems, a lessor must be take precautionary steps as early on as possible.
It all starts with the lease agreement. Before anything else, a potential lessor, or a person desiring to lease out his spare room, has to draw up a good lease agreement. Like any contract, this is binding upon the parties and will ensure their rights and obligations. The lessor may make draft. In doing so, the lessor should specify the payment scheme to be implemented, rules and regulations to be observed in the house and the like. Then, the lessor should consult a good lawyer to help formulate the final draft. Getting an attorney may be pricey but it’s worth the trouble to ensure a solid lease agreement.
With a final lease agreement drawn up, the next step for the lessor is to prepare the room to be leased out and even his or her house. It is not only important to clean out the room to be leased to make room for the tenant’s things; it is equally vital that the whole house is ready to receive a new occupant. An inventory of valuables should be made and the house should give the impression of how the lessor wants it maintained.
After the house is ready, the next step is looking for potential tenants. This is usually done through newspaper ads, phone calls to friends or simply through word of mouth. In doing so, the lessor should specify the kind of tenant he or she desires to rent out the room. The more particular the description that is given out, the more likely that the lessor will have the ideal tenant he wishes.
Potential tenants will soon turn up and meet-ups are arranged. Usually, the lessor will give a tour and show the likely lessee the house and the room to be rented. During this process, it is important not to give out to much information. The lessor should give enough information to give the possible tenant a general idea of his or her living situation. Yet be specific with the amount of the rent, how it is to be paid, and the house rules.
When the lessor has narrowed down the choice of his possible tenants, he should do a background check. This is a crucial step in the process. By conducting a credit and background check, the lessor is more or less ensured that a potential lessee has good character and a good financial history. This also helps the lessor choose the best among the possible tenants.
Finally, when the lessor picks the lucky lessee, it is time for both parties to sign the lease agreement. After signing, the lease agreement should be notarized to make it more effective and to send a clear message to the lessee that the lessor seriously intends to enforce the lease.
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