The first thing you should do is look at comparable rents in your neighborhood. See if there are similar situations where a landlord rents a single room. This gives you the best idea of what market rents are for a roommate situation. Create your ideal tenant roommate avatar and set the standards by which you choose a tenant. Is he a student? A retiree? Someone who has no criminal history? Some questions you might need to ask yourself before applying for a rental room could be: without a room rental agreement, you risk opening up yourself and other tenants with serious financial consequences and wasted time, both of which cause serious headaches and stress, or even possible legal action. The disadvantages are that you introduce a financial component into your friendship. What happens if they are late or there is an argument over rent damages? Would you be comfortable asking them to pay rent if they are late? The Federal Fair Housing Act does not allow discriminatory language to be used to promote a rental offer or to base one`s final choice on discriminatory factors. You can define certain criteria for which you are considering, just like for the rental of an entire property. Indicate your rental income and expenses on Form 1040, Appendix E. But in the long run, you`re better off if you help your tenants find sub-tenants. You may have an extra bedroom, but if you have a small kitchen, bathroom, and living room, things could get clogged (and people could get capricious), which means you just want to reconsider your decision due to lack of space.

To legally rent a room in your home, you need to follow these steps: a common law agreement is more flexible than a housing rental agreement, as roommates can agree to all the terms. However, because each term must be negotiated and agreed, common law agreements are often not as comprehensive or defined as a housing rental agreement. This may mean that it takes more time and money to resolve the disputes that arise. Be sure to review your specific state laws to determine what is the maximum deposit you can collect and how to handle the deposit. Does it have to be deposited with a deposit system? Or on a separate bank account? If you ask for a deposit above the state maximum, you will be on the wrong side of the law. Stay informed with economic news and make sure you understand the value of your home`s location. For example, a room in an apartment in central Boston would be in high demand and you could probably ask for a higher rent than for a place in the suburbs.