How much can you make renting rooms? That depends on the demand in your area, the prevailing rates, and how many rooms you have to rent out. But lets throw a few numbers out there. Suppose you have two spare bedrooms you can rent out, and in your town a room rents for about $100 per week. If you fill both rooms you'll have $10,400 coming in, and most of that will be profit.
You see, even with all utilities being paid by you, these costs will not rise all that much from two more people in the house. I know from experience that each renter adds only a few dollars per week to the electrical bill and almost nothing to the cost of heating. If you take away those minor additional expenses then, and figure you'll have the rooms empty 90% of the time, you can still net $9,000 each year.
Of course, you might only have one room to rent, in which case you can cut that in half. But that's still about $4,500. wouldn't that pay for a nice vacation every year? And what if you not only have two rooms, but you build another in the basement and rent that out too? Now you're up to over $13,000 annually for your net profit.
As for whether you can live with others comfortably, that's something you'll have to decide for yourself. I enjoyed the company most of the time when I was renting rooms in my house. You may not know if you will love it or hate it until you give it a try, but at least you get paid for trying. To make it work though, stick to the following guidelines.
1. Have a set of "house rules" that every renter is aware of and complies with.
2. Include everything you can in the rent, so you don't have to be chasing after people for a share of this or that bill.
3. Call a previous landlord or even a prospective renter's parents if he or she has never rented before, to try to determine if you have a decent tenant.
4. Charge a fee for overdue rent and don't stress over late payment as long as it comes in within a week or two - with that fee.
5. Charge rent according to tenant paydays (weekly or bi-weekly), so tenants don't need to budget and save for a big monthly payment.
Implement these simple guidelines when renting rooms in your house and it will be easier to tolerate the inevitable small issues as you collect that new stream of income.
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