Friday, December 20, 2013

Operate A Rooming House Legitimate Estate Rental fees

A rooming house, also called a boarding house, is a property where multiple individuals rent space for a temporary period of time. Many landlords set up rooming house arrangements on a month-to-month or week-to-week basis. In some rooming houses, as is the case with a hostel, some landlords even rent by the day. If you're planning on running a rooming house of your own you should get familiar with the various scenarios and management issues involved with this type of arrangement.


Instructions


1. Get a rental housing license from your town or city to run a rooming house if required. Contact your local city planning or general town administration office regarding rental license requirements. To secure the license you may have to submit to a physical check of the premises to ensure that it meets building codes and also get proper insurance.


2. Perform thorough credit and background checks for all potential roomers who plan to stay for an extended period. Establish a background search policy to use when evaluating roomer applications (in other words, determine what would allow an applicant to pass or fail the background check). Even if you do find background issues for roomers and still decide to offer a room, it is wise to know the history of everyone who has access to the property.


3. Create a written lease for each roomer. No matter how informal the arrangement, get it in writing to reduce the chance of confusion. Decide the frequency of payments from roomers (usually either weekly or monthly) and include all payment terms in the roomer agreement.


4. Provide each roomer with a locked room where he can feel comfortable and secure while staying at the house. Outline the common areas where roomers can go besides the bathroom, such as a common living room, computer room or kitchen. Provide a secure, common place where all roomers can submit payments also.


5. Establish house rules for all roomers and include them as a rider with the lease. For instance, include acceptable noise levels, access restrictions and rules against having overnight guests. Post the house rules in a frame in each room of the house as well so that all roomers understand and get constant reminders of the rules.


6. Prepare yourself to mediate disagreements between roomers. However, there are certain issues that they may have to resolve on their own. Consult a lawyer before taking action on serious issues that arise in the rooming house.


7. Hire a cleaning professional to visit the house regularly to clean common areas. Hire a maintenance professional to come promptly when you need repairs at the house.


8. Include a firm policy and process for termination of the rooming agreement if roomers fail to pay or violate house rules. Study your state's landlord tenant laws to understand the notice you have to give roomers (usually about 15 to 30 days).









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