Thinking about renting out a room in your house?
Make sure to avoid these three big mistakes!
[00:00] – Speaker 1
Hey, guys, Max, here, I have rented out gosh, it's almost five years now, renting out rooms in my house, I have had a 100 percent rent pound rent paid. Not always on time, though, ratio. Here are the three biggest mistakes I've made that you can avoid when renting out a room. So here we go. First one is renting out a room in the first place. Do you have the lifestyle that allows for this?
[00:32] – Speaker 1
Now, when I say lifestyle, I mean, do you have the wherewithal to give up having access to your bathroom all the time? Perhaps the kitchen, the living space, you have to really ask questions. Am I able to share and do it without complaint? Because the reality is when you have roommates, it's really difficult to complain about them being in the bathroom. The reality is this. When you have roommates, you have to sacrifice things and does your lifestyle for that.
[00:59] – Speaker 1
That's a really important question to ask. And then even more than that, I have had to deal with interpersonal problems. Having more than one roommate. I've had to break up nearly a fistfight. It was probably about this caused me a fistfight. I've had to break that up. It's really not fun. So those are some of the conflicts that you may have to deal with, especially if you're renting to fellahs. Ladies, probably more covert operation when it comes to conflict.
[01:21] – Speaker 1
But guys that straight up, they want to fight each other. I've had that many times. So are you ready for that? That is the question. I remember having some friends of mine. It was a friend of mine actually, and they were renting out three rooms, one to a young woman to to some random guys they met on Craigslist or Facebook or whatever it was. They didn't know them. And they themselves had two young daughters, like a second grader and the seventh seventh grade or something like that.
[01:47] – Speaker 1
Now you can do whatever the heck you want. It's your life. I just know if I had two young daughters, I would not be raising any strange man or anybody, for that matter, strange into the house. But that's their life. So think about do you have the lifestyle that allows or something like this? If not, then you should not rent out rooms. It's really that simple. If you can't say a resounding yes, I have the right lifestyle for it, then the reality is you shouldn't rent out rooms.
[02:09] – Speaker 1
It's really that simple. Here's a solution, though. Create a lifestyle that allows you to rent out rooms, earn an extra income on the home you own. Now, if you have a mortgage, let's say two thousand dollars a month, you rent out two rooms at three fifty apiece, they're seven. And now your actual cost to live in the house is 300 bucks plus whatever utilities they are. That's a really good deal, if you ask me, but it takes sacrifice.
[02:33] – Speaker 1
I moved into an RV for four years, the first four years of doing this. I lived in a frickin RV on my property. Yes, I went to go by. I bought an RV for three thousand dollars. The RV paid for itself and about three or four months, which was really nice. But ah, you want to make that sacrifice. See, it's really hot. Living in an RV thankfully had air conditioning and but it takes sacrifice to create financial success and then financial freedom.
[02:56] – Speaker 1
It doesn't happen just overnight and it doesn't happen just because you will it to. You have to make actual sacrifices, which seems to be a taboo thing in today's culture. Second mistake, renting to the wrong person. You have to ask the right questions when you're talking to someone for the first time. The reality is, if you have your sleep schedule messed with or they have their sleep schedule messed with, it's going to make a very, very, very not fun experience at home.
[03:23] – Speaker 1
And the reality is, when you come home, you want it to be an oasis, a time away from the stresses of the rest of the world. The way least is how I look at it. I want to come home and have a stress free environment or at least as close to stress free as possible. So when people have very conflicting sleeping schedules, I wouldn't have had a roommate. Shame on me again for asking the questions that worked a graveyard shift.
[03:44] – Speaker 1
So he was awake all night, pretty much until the wee hours of the morning and slept all day. Well, that's kind of hard when you have a normal job and you work during the normal daylight hours like most people do. So really ask those questions. Those questions are super important. The last thing you want is your sleep schedule messed up or their sleep schedule messed up when sleep deprivation is on the question, oh, that makes for not very much fun at all.
[04:06] – Speaker 1
And then obviously or even worse than a single person, that's not the right person as a couple, do you know what to do with their familial or couple relationship issues? My goodness. Just never. One of the big roles never went to a couple, ever. I do have a solution, though, do not do research on questions I've created, I think a couple dozen questions to ask somebody when you first talk to them, go to this URL, Maximino Monegasque, rent your room.
[04:31] – Speaker 1
I'll spell out rent your room, go to it. You'll hit a landing page in just a moment. It'll show the landing page. You will be able to have access to all the roommate questions as also some other research as well. Temperament and how your email end and I'll have you have access to it for free. Then you'll be able to see all these questions. Why are you looking for a new place? Do you smoke? Are you 420 friendly?
[04:52] – Speaker 1
Can you put down a deposit? All these really, really important questions that you want to ask somebody. And then you also have access to all the other resources as well. So go ahead and go to the URL right now. But you want to have these questions answered. You don't want to be in the dark on things you want to know. Do they smoke? Can they pay the deposit? Can they pay the rent? All these really basic questions and some of the more in-depth ones, like sleeping schedule, what you do on the weekends, family nearby, things like that, all those things are really important.
[05:18] – Speaker 1
And I created a guide for that. So go download the guide or download the guide, get access to the resources so you can ask the right questions because the last thing you want is the wrong person in your house. It's not fun kicking someone out of your own house. At some point I'll tell the story about how I had to kick, shall we say, an unwilling party out of the house. Stay tuned for that video. All right.
[05:40] – Speaker 1
So you have completed the following. You have figured out your lifestyle is the correct lifestyle to rent out rooms. Check the job. Second one. Have you found the right person if you have awesome now? This is the one that I see most people stumble on, is not having the correct paperwork in order when you do not. Number three is when you do not have a lease or roommate agreement set up. I don't care if it's your brother.
[06:03] – Speaker 1
I don't care if it's your nephew. I don't care if it's your or if it's your significant other. I don't care if it's somebody off Craigslist or Facebook. You need to have things in writing. Things in writing will keep everyone on the same page. When you have to think when you have something in writing and people actually sign it, it makes it real. It makes it legitimate. It doesn't just. Oh yeah. Pay me on the first hour.
[06:21] – Speaker 1
You pay me when you can and don't ever use that word first. I don't ever say pay me what you can pay me on the first payment. The first, the first one the rent is due. That's the fact. Always have things in writing. Things in writing makes things a hell of a lot easier for you in the long run, just in case you had to involve an attorney. I hope you never have to do that. I haven't had to do that quite yet, although I've had to recommend people.
[06:37] – Speaker 1
Hey, we signed this number on this day when we signed this lease together. Yeah, that right there. Yeah. Let's follow through on that. And how can we work on following through on that. You just want recourse and you want to be able to show someone, hey, you sign this, let's follow through on this. Keep everything on the up and up, everything legal, of course, all the follow, all the legalities of your locality.
[06:56] – Speaker 1
But you don't want to have any questions about when the rent is do what the process is, when they move out or they're evicted, hopefully not evicted, but what the process is when they move out, when they're going to get the deposit back, all these stipulations you want to make sure are written down and everyone signs. So everyone's on the same page because the last thing you want is somebody who doesn't know what's going on, is not in the same page and thinks they can pay the rent on the fifteenth because that's when their their check comes in.
[07:19] – Speaker 1
Well, news rent is due on the first look at the contract. Have a contract. I do have a solution though. You don't have to create your own lease agreement. I've created one. This is a really, really good one. I've used it for, I don't know, probably about three dozen, three dozen roommates. It's if you go to the same, you are actually moneybags, four a.m. the access to it and you go to it right here.
[07:38] – Speaker 1
It's just a simple lease agreement. It goes over the stipulations, what day everyone has responsibilities, the rental, everything and everyone signs make it make sure everyone signs. You want to make sure everyone's on the same page. The last thing you want is people in on the same page. You want everybody on the same page. The stressed out enough. Everyone needs to know what's going on, especially you and especially them. Because the reality is this.
[08:01] – Speaker 1
I've had room, I've had people who it's their first time ever being in a new place as opposed to mom and dad's house. So they have no idea how this thing works. You want to make sure they understand in a very simple way. Yes, it's three or four pages long. But if you read through it, there's no legalese and it's actually pretty easy to understand. Make sure everyone knows what's happening. Well, those are mistakes I've made.
[08:19] – Speaker 1
And hopefully you don't have to make them any more. Make sure to go to the resources, go to the resources page. I will give you all four of those resources, which are really, really helpful. You will get the lease agreement, the roommate questions the roommate agreement, which is kind of just house rules and then the room and make sure that none of those you will have access to all of them forever and you can use them for your landlord and roommate.
[08:40] – Speaker 1
Rewarding adventures. Make sure to comment on subscribe below. I will see you guys in the next one. And happy landlording