Want to Cut The Cost of Home Ownership? Consider Supplementing your Mortgage by Renting
With the increased cost of home ownership, increasing housing prices, and more rigid mortgage lending rules today, homeowners are always looking for ways to cut the costs associated with home ownership. While you can do your best to reduce energy consumption and make your home more efficient, this will have little impact on your monthly mortgage payment.
Cut the Cost of Homeownership by Renting
One of the most effective and impactful ways to cut the cost of home ownership is to rent part of your home as a way to supplement the cost of your mortgage. While many homeowners might be leery of renting space in their home, it is a potentially lucrative opportunity to cut costs and provide you with more financial flexibility.
Renting gives you options:
- You can afford to own your own home – See Renting vs Buying, Which is Best for You?
- You could pay your mortgage down quicker
- It can free up extra monthly income
- You can afford a larger home
- You could invest the money in home upgrades
Rent can range from a few hundred dollars to more than $1000 per month, depending on where you are located and the type of space you are renting. This is why many people are now looking for homes that already have a rental suite or have the potential for one. A little work can offer many advantages and flexibility for you as a homeowner.
Rental Options
You have a number of rental space options to consider. You could rent out:
- A room
- A renovated attic or garage
- An entire floor
- Your basement
- A rental suite
Who Will I Rent to?
There is no shortage of people that are looking to rent. You could rent to a:
- Family member
- Roommate
- Friend
- Student
- Tenant
The trick is to find the right tenant for your situation, given the rent you expect to charge and the type of rental unit that you are offering.
Do Things the Right Way
If you are considering renting to a tenant, it’s essential that you do your homework and do things the right way. Every city has specific regulations that govern rentals and you need to make sure your rental space complies with these rules. If you are new to renting, it is a good idea to consult a real estate professional to make sure you do things the right way and are maximizing the potential of your rental unit.
Do you have a rental unit in your home? Has it provided you with additional financial flexibility? How are you using the extra monthly income?