With the current rental housing shortage across the country people looking for a place to live are now considering renting out a room in a single family house or larger apartment. Additionally people that own a house or large apartment are looking for extra income and are willing to share their living space for a price. However, renting out a room in your living space can be problematic if you let a bad tenant in. In this scenario (before renting out a room) it is even more critical to perform a thorough tenant background check on the person before letting them live with you…
Numerous communities across the country face a rental housing crisis, one that continues to boil. Eventually it could become the “front and center” challenge that pushes politicians to make bold statements and complicated laws. For now people are finding different means of rental housing.
Rental housing comes in a variety of forms and the most common type is an apartment.
Apartment living has become a very popular type of housing for millennials as they tend to be more transitory than previous generations. Having lived through the Great Recession in the early 2000s has made them skittish about settling down and, further, they also have no fears in traveling around the country in search of the perfect job.
Moreover, the ability to move around the country and working high paying jobs has allowed millennials, and others, to pay more for rental housing. Additionally, they have placed greater demands on amenities, such as roof top pools, concierge services, and on-site gyms, and they are willing to pay for it.
The option of paying more for a smaller apartment is not for everyone and one of the options might be renting out a room in a single family dwelling or larger apartment. As generations grow older, kids grow up and move away, downsizing from a house that is paid for might not be the next step. Renting out a room may be a good way to earn additional income. And, in other cases, having someone to share the rent is not a bad thing.
The truth is that renting out a room should be handled in the same way as renting out an entire property. Applicants should go through a thorough vetting process, one that includes a complete tenant check.
From a recent article posted to WTOP.com (Apr. 25, 19):
It isn’t enough for a tenant to look good on paper. “Tenant screening for live-ins is critical,” says Glenn Carter, the chief editor of Condo.Capital, an Ottawa, Ontario-based digital content platform for condo buyers and real estate professionals. “I’ve heard so many horror stories of bad tenants making your life difficult by being messy, not respecting the space, being up all hours of the night and so on,” Carter says. He also suggests walking the prospective tenant back to his or her car “to see how tidy they keep it” to get a sense if the tenant is neat. https://wtop.com/news/2019/04/considerations-when-renting-out-a-room/
Whether it is a room in a house, the spare room in an apartment, or the Mother-in-law apartment over the garage, a tenant check goes a long way in understanding and verifying the information provided on a tenant application.
Tenant reports often include (but are not limited too):
- Consumer credit report
- County Criminal History report – Statewide Criminal Check or National Criminal Background Check
- Sex Offender report
- Eviction Records report
As with traditional apartment leasing it also remains a best practice for anyone wanting to rent out a room in their personal living space (especially to a stranger) to conduct a thorough interview and investigation. A vetting process that consists of a complete tenant check which includes several background reports like criminal background checks and reference checks.
In the end tenant checks do not cost very much and the benefits far out way the price and the time it takes to verify all pertinent information. A third-party tenant screening company that offers affordable, thorough, and secure background screening for landlords and property managers is always the best option, and they can also help keep you compliant with relevant laws concerning the tenant screening arena.
To learn more about why performing a thorough tenant check is so important before renting a room to a stranger and how sharing your living space could cause huge problems and headaches read recent TenantScreeningUSA.com press release: Renting Out a Room? Don’t Forget the Tenant Check