FRUGAL LIVING TIP OF THE MONTH

Piggy bank

SHARE YOUR HOME AND SAVE BIG ON LIVING EXPENSES

How Much Can You Save? $1,000 or more per month

Making It Work:

Renting out space in your home can be a simple and easy way to really
save a lot of money. It doesn’t even require any time or work! It’s
practically free money.

Try these tips to make the process as painless and lucrative as possible:

1. Consider your space. What do you have available? Can you create living space in your attic or basement? Should you convert your office into a spare bedroom? What is the bathroom situation? If you have space available close to an entrance, you’re less likely to hear your tenant(s) coming and going.

2. Develop a list of rules before finding a tenant. Are people responsible for washing their own dishes? Do you permit shoes to be worn in your home? What about overnight guests? Where will your tenant(s) park? Smoking? Pets? Having these issues  ironed out in your mind will make it easier to find a housemate that’s right for you.

3. Contact your home insurer. Make an inquiry regarding the effect one more tenants will have on your homeowner’s policy. The most important issues can be landlord insurance and covering any pets.

4. Require insurance of your renters. Every tenant should have coverage for liability and their own personal property.

5. Determine an appropriate rent. How much space do you have to share? Will the tenant have their own bathroom? What are rents in your area?

6. Find the right tenant. Finding a compatible housemate can make all the difference. The wrong tenant can be a nightmare. Ask your friends and family if they know of anyone looking for a place to stay. There are many services that will provide a criminal and credit check for around $50. It can be money well spent. Be sure to use a lease.

Consider how much money you can save! With one housemate, your rent or mortgage and utilities can be cut by 50%. With two tenants, your living costs are reduced by 67%! Cut your monthly expenses by $1,000 every month and you can save $6,000 in six short months. What could you do with an extra $6,000?

You can find a great tenant with a little effort and dramatically reduce your expenses. Sharing a home is becoming more commonplace. It can be a wonderful way to make ends meet or to set aside additional savings.

 

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