Thinking of renting out a room for extra cash? Then vet your tenants carefully. According to a new study, homeowners are evicting renters more often than you think.
Renting out a room isn’t easy
According to a study from Homes.com, one in four homeowners who rents out a room has evicted someone.
Additionally, about 20 percent say they have regrets about renting out their space. At least a third say they wish they’d charged more for rent, 17 percent say they should have spent more time screening tenants, and another 17 said they should have implemented better security measures.
Just over 5 percent wish they had never rented their space out at all.
Show me the money
If you do decide on renting out a room, you can expect to make about $813 a month from short-term renters and $1,025 from a long-term tenant.
If want to bring in even more cash, making a few key upgrades can help. According to Homes.com’s findings, over 60 percent of homeowners repaint before renting out their space. Half update flooring, and 29 percent upgrade lighting. Another 20 percent also replace appliances.
Nearly three-quarters also furnish their rental space. This can help make the property more marketable, according to the report.
“From the renter’s perspective, a pre-furnished unit can present a money-saving opportunity, as well as help to avoid a potential headache when moving in or out,” Homes.com reported.
Get today’s mortgage rates
Thinking of renting out a room for extra cash? Consider a cash-out refinance or home equity loan to help pay for the prep work and furnishings. Shop around and see what rates you qualify for today.