More and more people are seeing the value of becoming a landlord, and for good reason — it’s a great source of additional income that can help you get on that road to financial independence much earlier than you originally planned. Depending on your property situation, you can take advantage of numerous ways to make money and perhaps even retire earlier than expected as a landlord.
Rent out a room in your home
If you’re okay with living with a roommate in your primary residence, you can save (and make) a lot of money by renting out a room. Be sure to have your potential roommate fill out a Rental Application, so you have a better understanding of who the person is. In addition to in-person interviews, request that they submit Reference Letters. You want to take every measure possible to ensure that this person is the right fit for your living situation. Once you’ve found the right tenant, formalize the relationship with a Lease Agreement. In it, you can outline the details of the living arrangement, from the length of the tenancy to the price of rent.
Rent out your vacation home
Do you have a vacation home sitting quietly until you and your family arrive for the next summer? No matter where your property is located, there are usually travelers and locals year round who are willing to rent property — whether it’s for one night or for a whole weekend.
But before you rent out your property to anyone, be sure to ask for a security deposit. It’s a good way to ensure that your renters will be responsible and remain accountable if something happens during their visit — especially if you’re states away from the rental property. Provide a Security Deposit Receipt to the renters to record the amount that was received.
Use our Home Rental Agreement to outline any rules and expectations you may have of the renters. For instance, you can request that they don’t have any large parties, or that they be quiet past 10 pm on weekdays.
Rent out your home while you’re away
If you travel quite often, you may consider renting out your home while you’re away. You can even use the rent money to fund your travels. But similarly to renting out your vacation home, be sure that they give you a security deposit (and make sure you give them a Security Deposit Receipt), and draft a Home Rental Agreement so that both you and renters are on the same page. If you have any instructions or rules for your renters, the Home Rental Agreement is the document to use to address all those issues.
Landlords: Do you have any tips for fellow landlords? Share in the comments below!