Renting out an extra room in your home is an excellent way to make some extra money and add another income stream. This won’t appeal to everyone, but if you are looking for extra money and aren’t adverse to someone else living in your home then there are some great benefits to doing so:

• Extra income that could help pay off your mortgage
• Make new friends
• Help pay off debt
• Protecting yourself by creating another income stream

But before you rush out and put up a For Rent sign, you may want to stop and consider a few things:

• Privacy Depending on your home, there could be privacy issues you need to think about and deal with.
• Tax It would be a good idea to consult the ATO for the tax implications with renting out a room in your home, but there can be advantages to doing so.
• Space How much space do you have to offer? Just a room and bathroom? The whole of your downstairs area?
• Amenities A separate bathroom is a must, but what other amenities have you to offer?
• Risks You need to think about the risks involved with having someone in your home, including personal safety and any damage that may occur to your home
• How much you should charge What are you going to charge for your room? It may be a good idea to have a look at some other rooms for rent in your area to get an idea of what you could reasonably charge.
• Lease Length How long are you going to make your lease? Did you want to consider a trial period first?
• Furnishing the room You will need to provide some basic furnishings – a bed, cupboard, desk – for your new housemate.

Ready to get started? Try Easy Roommate to find people who are looking for a place to stay.

Would you ever rent out a room in your home?