If you have a room that you are not using, then you should consider renting it out. You can get many potential social and financial benefits from renting out your spare room. Renting out a room might be an actual bedroom, or a combination of bathroom and bedroom, and an access to the kitchen.

No matter what space you choose to rent out, it means that you will be living with another person in your home. It is different from subletting because you are renting out a room in a property that you own. That means it is a landlord/tenant relationship instead of that of two renters.

Extra Income

One of the reasons that why you should consider renting out your room is extra income. You can use this passive income for mortgage repayments, extra spending money, or for a property upgrade.

During tax time, you can have potential claim deductions as a landlord. When you rent out a room, you need to pay tax on the profit you make from it. However, the profit is calculated by deducting the allowable expense from the rent income. Some of these expenses include repair and maintenance costs, water rates, electricity and gas bills, council tax, insurance, and cost of services.

Companionship

Having someone renting a room in your house can help you socialise more. It might even lead to a new set of friends. To ensure that you will enjoy the company, make sure that you spend more time getting to know potential candidates. It is important that you find a person who you can live with. Keep in mind that the person will live in your home and you will be your companion for the duration of the contract.

Share the Load

If you are living alone, then having another person around is a good thing. You will have an extra set of hands whenever you need help with something. If the tenant has good DIY skills, then you can ask the person to do some work at home in exchange for a lower rent.

Another way renting out a room can help you is when you want to go on a holiday. If the tenant is trustworthy, then you can let the person housesit for you while you are away. If you have developed a good relationship with your tenant, then he or she might agree to look after your cat or dog while you are on a holiday.

Renovations Increase Property Value

Aside from the companionship and added income, the renovations you make may be a good investment for the future. By renovating to make some areas more accessible to your tenant, you also increase the resale value of your home.

These are the reasons why you should rent out your spare room. However, you should know the law before you offer your room to potential tenants. It is also important that you have a contract, even if you trust the person renting the room.