How to Make Extra Income by Renting Out Your Spare Room

Renting out a spare room in your home can be a fantastic way to make extra income, meet new people, and make the most of your available space. However, turning your spare room into a profitable rental can be challenging, especially if you’ve never done it before. It requires careful planning, a bit of marketing, and an understanding of what potential tenants are looking for.

Our guide will walk you through everything you need to know about optimizing your spare room for renting, from finding potential tenants to setting the right price and making your space more appealing to renters.

Finding Potential Tenants

Use Online Platforms

Websites like SpareRoom are invaluable resources for homeowners looking to rent out their spaces. SpareRoom allows you to list your room and manage inquiries from potential tenants. The platform is designed to match people with rooms to rent with those looking for a place to live, making it easier to find a compatible roommate.

Create a Compelling Listing

Your listing should be detailed and inviting to attract the right tenant. Include high-quality photos of the room and common areas, a thorough description of the space, and any rules or expectations you have for a roommate. Be honest about what you’re offering and what you’re looking for in a tenant, as that can help stop complications or misunderstandings down the line.

Screen Potential Tenants Carefully

It’s important to find a reliable tenant who is a good fit for your household. Make sure to get to know applicants before inviting them for a viewing. Consider asking for references and conducting a background check to ensure peace of mind. Remember, you’re not just offering them a property like a normal landlord – you’re inviting them into your home.

Highlight Unique Features

If your home has any unique or popular features, like a great location, scenic views, or access to public transport, be sure to highlight all these in your listing. They can be major selling points for potential tenants.

Deciding How Much Rent to Charge

Research Your Local Market

The amount of rent you can charge depends largely on your location, the size and condition of the room, and the amenities you’re offering. For example, New York City is a more expensive city to live in compared to other cities in the US, so you’d be able to charge more rent. But if you charge too much rent, especially in places where other landlords might be asking for lower amounts, it’ll likely be a lot harder to secure tenants.

Look at similar listings in your area to get an idea of going rates.

Consider Your Costs

Make sure to factor in your expenses, such as utilities, internet, and any other services you might include in the rent (like cleaning). These costs should be considered when setting your price to ensure you’re covering your expenses and making a profit. Once again, we recommend looking at what other landlords and homeowners are doing in your area.

Be Competitive but Fair

While it’s important to make your offer attractive, don’t undervalue your space. Set a competitive price that reflects the value of what you’re offering but remains fair to both you and the tenant.

Making the Room More Appealing

Furnish and Decorate Tastefully

A well-furnished and nicely decorated room can increase its appeal hugely. Every room should include basic furniture like a bed, wardrobe, or even a desk. Use neutral colors for walls and bedding to appeal to a wider range of people. But that doesn’t mean you can’t add a few decorative touches to make the space feel welcoming.

Offer Amenities

Amenities can make your offering stand out. Consider including high-speed internet, a TV with streaming services, or access to a printer. Things like these can be a lifesaver, especially if your new tenant works from home. If it’s possible, offering a private bathroom can also be a huge plus and will mean you can charge higher rent.

Maintain Cleanliness and Safety

It’s important to make sure the room and common areas (such as the living room and kitchen) are clean and well-maintained. Safety features like smoke detectors and secure locks can also make potential tenants feel a lot more comfortable, especially if you’re housing more than one roommate.

Final Thoughts

Renting out your spare room might seem like a challenge, but it can be a rewarding venture, both financially and personally. By carefully preparing your space, pricing it correctly, and finding the right tenant, you can turn your spare room into a profitable part of your home.

Remember, communication and transparency with your tenant are important to cultivating a successful renting experience. By following these steps and leveraging platforms like SpareRoom, you’re well on your way to making the most out of your space.

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