Pros and Cons of Living With Your Tenant(s)

If you have an empty room gathering dust, you might be considering renting it out for some extra income. But before you list your space on Airbnb, it's important to weigh the pros and cons of living with a tenant.

I was renting extra rooms in my house and lived with a lot of tenants for about one year. While I was hosting I could meet different types of people. The pros and cons are very clear, to summarize, you will need to exchange money and your partial personal life.

Pros When Living With Tenants

Extra Cash

This is the most obvious benefit. Rental income can help you cover your living expenses, pay off debt, or save for future goals. In some areas, renting out a room can even cover your entire mortgage or rent! So, if you are struggle and you have an extra room, hosting can be one of options for relieving your financial stress.

Help with Bills

Sharing utilities and other household expenses can significantly reduce your monthly costs. For example, if you are already paying $50 of electricity bill per month, having another adult in your house doesn’t make the bill $100. It’s going to be somewhere around $70, if the tenant uses electricity as much as you.

Built-in Social Life

If you live alone, having a roommate can be a great way to combat loneliness and make new friends.

Home Security

Many people think it’s unsafe to live with stranger, but what I felt is actually having tenants improves home security. Having another person around can deter crime and make you feel safer at home.

Cons When Living With Tenants

Loss of Privacy

Sharing your space with someone means giving up some of your privacy. Be prepared to adjust to having your stuff touched, your noise levels monitored, and your personal space invaded. Whenever you want to use kitchen, maybe your tenant is going to be already there. Because, we all eat breakfast, lunch, and dinner at the similar time. If you have a single toilet in your house, probably toilet is going to be always occupied whenever you want to use. Because we all take a shower before we go work or when we come back home, and everyone goes to toilet in the morning.

Personality Clashes

Not everyone is cut out for cohabitation. You could end up living with someone who has different habits, cleanliness standards, or social schedules than you, which can lead to conflict. To prevent this conflicts, it’s important to set rules such as no loud TV after 8 pm, no smoking inside house, or no other friends visit, etc.

Potential for Damage

Accidents happen, but when you're living with someone else, you're more likely to have to deal with damage to your property. It could be a small things such as broken dishes or cups, or something bigger issue such as destroyed chairs or beds. Maybe you will have to fix laundry machines or refrigerator.

Screening and Selection

Finding the right tenant can be a time-consuming and stressful process. You'll need to screen applicants carefully to avoid bad experiences.

Landlord Responsibilities

Depending on your local laws, you may be responsible for things like repairs, maintenance, and snow removal. Once you start to receive rents from your tenants, there are duties you must fulfill. Host or landlord must provide habitable condition which is removing any serious defect that can endanger life, health, or safety of your tenants. Not only limited to broken windows, roof damage, or water supply issue, there are some legally required responsibilities you must be aware of. Therefore, if your house has some functional major defects, you must repair those in prior to receive tenants.

Tips for Success

If you decide to rent out your room, there are a few things you can do to increase your chances of having a positive experience:

Be clear about expectations from the start. Lay out the ground rules for things like noise levels, guests, and shared spaces in a written lease agreement.

Communicate openly and honestly. Talk to your tenant about any concerns you have, and be willing to listen to their concerns as well.

Respect each other's privacy. Give your tenant their space, and don't be nosy about their personal life.

Be flexible and willing to compromise. Living with someone else requires give and take.

Ultimately, the decision of whether or not to rent out your room is a personal one. There is no right or wrong answer, and it depends on your individual circumstances and preferences. Weigh the pros and cons carefully, and do your research before making a decision.

Additional Tips

Consider your lifestyle. If you're a neat freak or a light sleeper, living with a roommate might not be for you.

Think about your long-term plans. If you're planning to move soon, it might not be worth the hassle of finding a tenant.

Get insurance. Make sure you have renters insurance to protect yourself from liability.

I hope this blog post has helped you weigh the pros and cons of renting out your room. With careful planning and communication, you can have a positive experience living with a tenant.

What do you think? Would you ever rent out your room?

Please share your thoughts in the comments below!

Disclaimer: I am not a financial advisor, and this blog post is not intended to be financial advice. Please consult with a qualified professional before making any financial decisions.