Turning a room into cash

With the cost of living rising, I’m seeing more people looking to rent out a room in their own place, whether they are renting already or it’s their own home. 

Renting out a room or sharing a house can be a great way to supplement your income, meet new people, and even make new friends. However, from my experience, it’s really important to start out wit the end in mind. That means make sure you have covered yourself in case things turn bad. It’s important to approach the process carefully to ensure that you find suitable tenants and avoid any legal issues. 

Here are some tips to help you rent out a room or share house :

Understand your obligations: Before you start looking for tenants, it’s essential to understand your obligations as a landlord or property owner under Queensland’s tenancy laws. These laws set out the rights and responsibilities of both tenants and landlords, and it’s crucial that you understand them to avoid any legal issues.  As a landlord, you have a duty to provide a safe and habitable living environment for your tenants. You must ensure that the property is in good condition, and you must respect your tenants’ privacy. You also have certain responsibilities regarding the collection of rent and the management of security deposits. If you are renting, check with the landlord before going ahead with this.

Set a fair rent: Setting a fair rent is one of the most important steps in renting out a room or share house. You need to be realistic about where the market is at and ensure that your rent is competitive. Research rental prices in your area, and set a price that is reasonable for the size, location and condition of your property. Decide if the space will be furnished or unfurnished, and what utilities and extras will be included, and how the rest of the extra costs will be divided up. You may want to consider offering discounts for longer leases or tenants who are willing to pay rent in advance. If you are already renting, then usually diving the cost equally between bedrooms is pretty typical, although it may be a higher rent for the master bedroom, or for parking spaces/garage etc.

Advertise your property: Once you have set a fair rent, it’s time to advertise your property. There are several online platforms available that you can use to advertise your property, such as Gumtree, Facebook Marketplace, community pages on Facebook, or flatmates.com.au. When advertising your property, be sure to include detailed descriptions of your property, photos, and any important information about the living arrangements.

Screen your tenants: Screening potential tenants is an important part of the renting process. You need to ensure that your tenants are a good fit for your property and that they will be able to pay the rent on time. Screening tenants may involve asking for references, conducting background checks, and meeting with potential tenants in person. You may also want to consider having tenants sign a lease agreement that outlines their rights and responsibilities.

Keep good records: Keeping good records is essential when renting out a room or share house in Queensland. As a landlord, you must keep accurate records of all financial transactions related to your property, including rent payments, security deposits, and any expenses related to maintaining the property. You should also keep copies of any agreements or contracts you sign with tenants.

Maintain the property: Maintaining your property is crucial to keeping your tenants happy and attracting new ones. This may involve making repairs and upgrades as needed, keeping common areas clean and tidy, and responding promptly to any maintenance requests. By maintaining your property, you can create a comfortable living environment for your tenants and build a positive reputation as a landlord.

Sharing a house with a stranger may seem like an invasion of your space, but it’s a great way to get some extra money in your pocket while helping someone else out too. Just make sure you have things in place to protect you and your house. 

If you’re thinking of doing this and need any help, please contact me and I’d be more than happy to offer advice or run through anything with you.