Re: Living with tenants - Landlord Forum thread 322073

Re: Living with tenants by Been There, Done That on July 30, 2014 @15:20

In some jurisdictions, renting out a room in your own home is treated differently from renting to a tenant who will occupy a separate dwelling. Your questions are difficult to answer as the answers will vary depending on at least four things (1) the law in your geographic area--not just your state law but possibly also your local city or county laws, (2) the number of rooms you are renting out--for example, if you rent out more than one room in California a different set of laws apply (3) the physical set up of the house and whether the person you are renting to will have access to the entire house or be in a separate area with their own entrance. (4) whether the individual is a tenant or a boarder.

So to answer your questions:

"Could someone please describe the difference in landlord/tenant rights when the landlord is also living in the residence?" I answered that above by telling you it depends. We'd need to know more about the situation and more specifics on your location other than your state in order to answer this. Even with that information, I doubt anyone here could tell you what you need to know since they won't likely be familiar with the law in your local area.

"Am I even considered a landlord?" Possibly, but it depends. See the above answer.

Are there special tips, things to watch out for, specifics that I should include in the lease for my type of arrangement?" OMG, yes! Read my remarks at the end.

Can I and should I require that my tenants have renters insurance?" Yes, you can and you should.

Does my standard homeowners policy cover my tenants since I am living there as well?" Possibly, but probably not. Only your insurance agent knows for sure. Ask him or her.

"What type of taxes do I have to pay on the rent money I am receiving?" Unknown. Federal and state income taxes at the very least, probably, and possibly more depending on your local jurisdiction.

The best advice I can offer you is to consult a local attorney who is experienced in landlord/tenant law. Also, read, read, read. Google "renting out a room in my home" and you can get quite an education in the pitfalls you should guard against.

I've rented out rooms in a home I owned in California, and a townhouse I rented in WV (back in my student days). I had some good experiences and some HORRIBLE ones. I found out one roommate--who I had known since I went to High School with him--was dealing illegal drugs out of the house when I came home unexpectedly one day when I was supposed to be working. I had one roommate in California who was a single Mom who had only visitation--not custody--of her child. On the weekends she had visitation, she would sometimes run off without telling me where she was going and leave the pre-school age child alone with me, without asking me if it was OK thus making me an unpaid, de facto babysitter. The worst part of this is I'd have no idea where she was or when she would return and no idea I was even on the hook for babysitting until the kid came to me asking for something.

People will do the damnedest things, and you can't even anticipate or imagine some of the things they will do.

If I were you, I wouldn't rent out another room in my home unless I was in desperate need of the money, and I would think hard about doing it even then and explore all other means of making the money first (second job maybe?). I would have a written agreement that spelled out absolutely EVERYTHING in great detail. I would screen like crazy. I would make sure to provide some service (at the very least, linen service where you change the sheets for them weekly or maybe cleaning service of their room) so the roommate would have fewer rights (would be considered a boarder instead of a tenant) and you would be able to see what's happening in their room behind the closed door (like signs of meth production or drug dealing or use).

You have been VERY LUCKY so far. The headaches you can get into with this are too many to recount and the problems you can get into can be beyond recounting and incredibly bad.

Worst case scenario? How about losing your house and going to jail? Or getting killed? Best case scenario? What you have right now with your current roommate.

Just how bad do you need that extra money?

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Re: Living with tenants by jannie (IL) on July 30, 2014 @16:09	[ Reply ]

I think Been there done that comments were very clear and realistic. I don't know why OP would want to add another roommate unless they were in desperate need of money. I'm not a "tax person" however, if it were me I would have been calling this money either "other income" or "rent income" on my state and federal tax return. It seems like income to me - it's consistent, the other person is paying something to get a roof over their head. Good luck. And, OP has been very lucky to have had a good situation.

Re: Living with tenants by Ko1990 (West Virginia) on July 31, 2014 @15:41	[ Reply ]

Thank you all for the suggestions. I will most definitely consult a lawyer. The people who I will be renting to are all long time friends. Well educated, drug-free, clean, kind, easy to be around. I would not rent out any room in my house to a stranger. Renting out to another person will mean my entire mortgage + utilities are covered. One of them was my roommate in college. The other hangs out at my house all the time as it is.

Re: Living with tenants by anonymous on July 31, 2014 @22:17	[ Reply ]

Good friends get "lucky" and bring home boyfriends/girlfriends. Friends cook bacon at 1 AM. Friends leave dirty clothes around. It is very important that you compile a list of "House Rules" and have each sign it. They need lockable doors. They require notices posted on the door to their bedroom for lease/house rule notices and for room inspections. They may get a hot plate and microwave and cook in their rooms. This would be a home insurance issue. What else--parking, oil stains, loud music, lights off time, visitors, visitors sleeping over, etc.