Renting out a Room of My House

• 

  [Deactivated] on 18/02/2019 - 09:06

  +22

  Good housemate - good choice.

  Bad housemate - bad choice.

• 

  dust on 18/02/2019 - 09:08

  If you can find a good roommate, this is fantastic! But finding the right roommate is not easy. You could try listing your room(s) online, interviewing some potential tenants and seeing what's out there?

• 

  87percent on 18/02/2019 - 09:16

  +1

  i think you should offer it to your friend, that ALWAYS works out well

  • 

    [Deactivated] on 18/02/2019 - 10:02

    +11

    My mate asked me if I wanted to move in with him once and I told him I didn't want to ruin the friendship.

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  capslock on 18/02/2019 - 09:31

  I think it helps if either of you are easy going otherwise pick a housemate that has a similar attitude or lifestyle to you to minimise arguments about cleaning, noise, visitors, etc.

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  Pumpkin_rrr on 18/02/2019 - 09:48

  +5

  How about renting out your 3-bedder and rent a 2-bedder somewhere else?
  Talk to your Accoutant.

  • 

    Quantumcat on 18/02/2019 - 09:59

    +5

    This is better, living with a stranger can be a nightmare. They can sound super nice and chill when you talk to them but then it all goes to pot a few weeks or months down the track. Especially if you are used to living alone, then even normal things will irritate you (that someone used to living with others would never even think about). Eg leaving food out on the kitchen bench, hair in shower drain, leaving outside light on when you usually turn it off, not tucking in chairs, not closing cereal boxes, never vacuuming, leaving their room light on, and many more tiny things that aren't what you're used to.

    But the big things of course are when they trash your place, won't pay rent, steal your stuff, etc etc which you have no assurance that they won't do no matter how many references they give you or how good a vibe you get when interviewing them.

    I would only do it if a) I was desperate (eg lost my job and couldn't afford to pay the mortgage any other way), or b) it was someone with extensive connections in my family and friend groups, for whom it would be really damaging to piss me off (ie they'd be exiled from everyone they know).

    • 

      capslock on 18/02/2019 - 10:04

      +1

      A good housemate can help with chores, look after the place when you're on holiday, be there for a chat or provide company when you need it.

      Depends on your personal preferences I suppose and luck on finding a good housemate.

      • 

        Quantumcat on 18/02/2019 - 10:08

        I think the risk to reward ratio is too high. A good housemate like that is one in a million.

        • 

          Hardlyworkin on 18/02/2019 - 10:41

          +2

          @Quantumcat: Turns out I've lived with about 50 of those 1 in a million types! Have you ever thought that actually, the problem wasn't them all along?

          • 

            Quantumcat on 18/02/2019 - 10:50

            @Hardlyworkin: So the guy that trashed my sister's house, wouldn't pay rent, abused her verbally and threatened to kill her, and then, after having a restraining order against him and putting his soiled mattress and other dirty and crappy belongings outside and having the locks changed with the help of the landlord and police, sued her for $10K for his 'ruined' belongings, was her fault?

            You probably got lucky and/or those 50 people weren't all strangers.

            • 

              HighAndDry on 18/02/2019 - 11:05

              @Quantumcat: If you're going to use "one in a million", you need more than just one example*. Otherwise your anecdotal account is far more likely to be the actual one-in-a-million case.

              *Technically you'd need 999,999 cases of bad housemates.

              • 

                Quantumcat on 18/02/2019 - 11:12

                @HighAndDry: I had some bad housemates too, just not as bad as the one above. One left without paying their last two weeks of rent and left their room in a disgusting state that me and the other two had to spend a weekend cleaning so we could get a new housemate, another one stole my N64 when she moved out, another one stole one of my other housemate's rare Magic cards collection, another one kept inviting random people to stay on the couch and loungeroom floor, even after we asked him to please ask first, or limit it to once a month, as it made it difficult to physically get to the kitchen to have breakfast in the morning (not even mentioning them staying up until 3am watching movies loudly when the rest of us had work or early classes, and it being uncomfortable waking to random strangers in the house multiple times a week). One housemate I got along with well, as long as I ignored his annoying behaviour (leaving his cereal bowls on the ground so you occasionally stepped on one and cut your foot or just got it covered with 2-day-old milk, using your towels, or eating your food). I was used to living with other people though. I can imagine that the OP, probably being a little older (i.e. not the 19-22 like I was, or like most people are when they live with housemates), wouldn't take as easily to living with those sorts of quirks.

                • 

                  HighAndDry on 18/02/2019 - 11:17

                  @Quantumcat: I feel there's a demographic issue at play here. I've had/dealt with quite few housemates. As long as you vet them properly and you're not too desperate and accepting the first one who applies no matter what (and this means you obviously have to be in charge of that process and not leaving it solely to a 3rd party agent or landlord), there're generally no issues.

                  I guess that also requires that you have good judgement, knowing how to vet them, etc.

            • 

              Hardlyworkin on 18/02/2019 - 11:11

              @Quantumcat: All were strangers. I'd say not unlucky rather than lucky. That sucks for your sister, sorry to hear.

  • 

    djkelly69 on 18/02/2019 - 10:03

    +1

    Even a 1bed if OP wants to try and save harder.

• 

  holdenmg on 18/02/2019 - 10:04

  +2

  Ask your insurance company if it affects your home and contents insurance cover.

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  iforgotmysocks on 18/02/2019 - 10:19

  You will probably need to keep the room in your house to rent it.

• 

  elgrande on 18/02/2019 - 10:34

  +9

  What did your dog say when you asked him/her?

  • 

    holdenmg on 18/02/2019 - 10:58

    +1

    Do they have a cat?

    • 

      [Deactivated] on 18/02/2019 - 13:40

      +3

      No. He said it'd be ruff

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  Seraphin7 on 18/02/2019 - 10:52

  +10

  You need to keep in mind that you are not really "renting out a room" … you are renting out your house while you're still living in it. The fact that this person will sleep in one of the bedrooms doesn't mean that's the only part of the house they'll be using.

  Time and again people think they'll "rent out a room" and then realise this other person will want to use the kitchen, the lounge room, the outdoor areas, have people visit, have people stay over, have incompatible lifestyles/attitudes, etc., etc. What started out as a "good idea" to make a couple of hundred a week of tax free, easy money becomes a total nightmare.

  Think this through very carefully before rushing in.

  • 

    wannagrababargain on 18/02/2019 - 14:38

    +1

    +1

    OP would be entering into a house sharing situation meaning giving up some level of 'control.'

    Can be difficult for someone who owns their own house to give up that control. More so than if a bunch of people all shared a rented place. There's less 'invested' (financially and emotionally) into a rented house vs owner occupied house.

    I would not recommend the OP do it unless they have past experience in house sharing. Takes a few years of learning and some mistakes to know how to do it right.

• 

  barbarella on 18/02/2019 - 12:36

  Try renting it out through AirBnB - even if you only have it available, say, on weekends - then you don't have to put up with someone there all the time, you still get paid well, people who are 'away' for a weekend don't usually want to cook or hang around the house etc etc. With AirBnB you can block out days or weeks on your calendar when you don't want anyone there. Be sure to let your insurance company know what you are doing though, to make sure you are covered if the 'guest/boarder/housemate' burns down the house.
  Sometimes peeps might need just a temporary accom for a few weeks, and that can be good 'cos if you don't like them, they will be gone soon :D

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  Pumpkin_rrr on 18/02/2019 - 12:50

  If you have to stay in your 3-Bedder to rent out one bedroom, and if you have an Ensuite, I would suggest sacrifice your Ensuite, so that you have control of the other 2 rooms and the Common/Guest Bathroom. If the person does not tidy-up or clean his/her ensuite, you wont get to see it. Chances are the person then can hide in the bedroom all day and you wont see him/her! That would solve half the tensions.

  You also can command higher rent by renting out a Master Bedroom.

• 

  tellhimhesdreaming on 18/02/2019 - 13:30

  You should also be aware that this can impact your PPOR capital gains tax exemption. DYOR

  • 

    Freitag on 18/02/2019 - 13:59

    It might be worth speaking to an accountant, they may advise you to have the house valued now and when you stop renting out the house so that if you do sell you can work out what portion of any capital gains should be taxed (if any).
    Additionally when you're deciding how much to charge keep tax in mind as it takes a fair chunk out.

• 

  [Deactivated] on 18/02/2019 - 13:51

  Will you declare the money or hide it under your mattress?

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  [Deactivated] on 18/02/2019 - 13:54

  +1

  One option I don't think has been mentioned, is renting to foreign students.
  Only if you have a uni not too far away.
  If they are Indian, they all seem to be hoping for permanent residency and visa to work after their study visa expires. So they would likely be on their best behavior, just because even the smallest bad thing on their record could prevent them from evee getting residency here. Ie. If they stole your tv or smashed up your home, the consequences for them would be much more serious than just a day in court and slap on the wrist. It could ruin their opportunity to stay and work here, and maybe have them deported before their student visa expires.
  Not being racist at all. I think there is good and bad and in race etc, just an Indian student hoping for permanent residency, has much more reason not to do anything bad.
  Some cleaners I employed were Indian uni students, 1 lived in a room of house where they weren't allowed to bring anyone back. This would help ensure safety and security for everyone living there. Sure, it seems bad not to be able to bring back guests, but also it has it's positives of greater security for everyone staying there.

  I have thought about renting spare room to a foreign student under the privizo they don't bring back strangers. My cleaner rents a room in house with this rule, he doesn't mind at all, rent is cheap, he doesn't want to bring back guests. I would offer reduced rent, because they would in a sense be getting reduced use of property.
  I have a large backyard and would maybe allow the room renters guests use of backyard for entertaining etc. Just I wouldn't like to return home and 5 strangers there, probably because same as OP i like living with my own space (and like it that way).

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  Lastchancetosee on 19/02/2019 - 08:02

  One option, if you're close to good public transport and/or a university is to take in an international student. They are generally highly motivated to study, and would welcome the chance to interact with a real Aussie. As the university organises it, you have recourse if there are any problems. You could begin by taking students on short term study trips of 10-15 weeks and see how you like it. The students are out all day studying, doing class trips, etc., but will be around over the weekend. You need an open mind, and be prepared to explain things. My partner has taken many students for short courses over the years, and has never had a problem with the students. For some groups you need to provide meals, but post graduate students can generally fend for themselves.

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  Geoff-bargain on 19/02/2019 - 08:31

  I did it a couple of years ago - similar situation to yours - I almost rented to someone who I think would have been quite bad. Then cancelled them and tried again and found someone who turned out to be awesome - it lasted about 18 months until she moved out with her newish boyfriend. There were a few weeks towards the end that were a bit annoying because her boyfriend didnt like his flatmate and was always at my place - like half the week - luckily they got their own place not too long after though.

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  bes44 on 19/02/2019 - 10:10

  hot tip!!

  find someone with a partner and hope they send most of their time at their place :)