Turn Your Home from an Liability to an Asset
I bought my first home in 2009, just as the market came crashing down and all of the lending laws began spiralling out of control. I was 23 years old, worked full time as a janitor, and was a full time college student. Not only have I been able to pay my mortgage each month on time, but I have also made an extra passive income by renting out my other rooms to college students who go to my school. I will walk you through the steps that I took to have my house and other bills paid for by other people.
1. Purchase a House with Plenty of Rooms
I purchased a house near my college that was a four bedroom and a two and a half bathroom home. I turned the garage into a fifth, larger room to maximize the renting spaces in the house. Having these extra rooms in my house allowed me to rent to more people, making my monthly passive income from the house greater.
2. Find Renters
The best way to find renters is through sites like craigslist.com or backpage.com. These are free websites that have a lot of traffic, especially in the housing section. Post your ads in the "Rooms/Shared" section. You will need to see what the competition is doing so that you can set your prices and amenities accordingly. My favorite thing to do is to set up appointments with other renters and see what their homes and spaces are like.
3. Screen Renters
Once they have called and set up an appointment to see your house, begin the screening process. I have a renter's information sheet that they fill out that gives me their names, old addresses, where they work, social security number, cell phone number, email, and so on. You need to have as much information about the person coming to live with you as possible.
4. Write a Lease
For the leases, I use a site called www.ezlandlordforms.com . It allows me to create a new lease and track each tenant that I have. This is a great website that is an essential tools for all landlords. I usually give the renters an option of having a six month to a year lease. Inside of the lease has all of the agreements that you two will make. You decide who does what and who is responsible for what repairs.
5. Rent Out the All of the Rooms
Once you have rented all of the rooms, just sit back and enjoy the checks coming in each month. I have four renters in my house right now, and they more than pay the mortgage and utilities. It has been a great experience and I hope that I can help others create a great passive income stream.