HOW TO RENT OUT A ROOM IN YOUR HOUSE (LEGALLY)
Thinking of renting out a room in your house? Whether you’re looking for extra cashflow or just to reduce your mortgage payment, taking in a tenant is a great idea. But, before you get your own “Landlord” nametag, there are some laws and essentials to be aware of.
STEP 1: DO YOUR RESEARCH
There are laws and ordinances for landlords and tenants that define the relationship and protect both parties. Familiarize yourself with local, zoning, and state laws, city ordinances, and any applicable homeowners association laws.
Here are some good resources to start with:
- Landlord/Tenant Law: Wisconsin State Law Library
- Tenant Rights, Laws, and Protections in Wisconsin: U.S. Department of Housing and Urban Development
- Wisconsin Fair Housing Law: Department of Workforce Development
STEP 2: SET YOUR BUDGET
Take a look at similar rentals in your area and how much they’re going for. Check sites like Craigslist so you get the full picture of what’s on the market.
STEP 3: GET YOUR SPACE READY
Apart from making sure your space is heated, ventilated, and clean, tenants have rights to essentials such as:
- Maintenance, i.e. inspections and general building safety
- Functional, secure windows
- Clean common areas
- Garbage/recycling bins
- Running water
- Access to a bathroom (basic sanitation)
- Privacy, i.e. the understanding that you’d never enter their rented space without their knowledge, locks on doors
STEP 4: WRITE A RENTAL AGREEMENT
The rental agreement document is a way to set the rules you and your tenant will follow. We recommend talking to a lawyer, but there are free templates online to try as well. This example includes fields for move-in date, rent amount, late fees, security deposit, occupants, furnishings, and more!
STEP 5: LIST YOUR PROPERTY
There are tons of places to list a room for rent, but start with Facebook Marketplace, Craigslist, and your personal social media channels. HotPads is another decent place to list your property in the Madison area.
STEP 6: SCREEN TENANTS
Landlord Studio has a downloadable tenant screening checklist that includes the basics you need to ask about, like their salary, credit score, and eviction record.
STEP 7: KEEP READING
Landlord-tenant laws change all the time, so never stop learning what you can to make your landlord experience successful. You can also find more in our article “How to Become a Landlord,” where we talk about marketing your property, maintenance, and more.
Have questions about renting out a room in your house? Or, are you on the market for a rental property? Our qualified realtors are ready to help you become an awesome realtor. Contact us today!