Even if you own your home, zoning laws might prohibit business in your area. You need to check with your local zoning office to see if you can rent for business purposes. Stop into your city hall and ask. [1] X Expert Source Nathan MillerProperty Management Specialist Expert Interview. 15 October 2018. The law might also limit which kind of business can be carried out in your area. You’ll want to know that information as well before you rent to someone.
You might be in an ideal location, such as right next to a train station. [2] X Research source In that case, you might want to charge a little bit more than commercial realtors. If your home office is just a chair at your kitchen table, then you shouldn’t charge as much as you would if the office is an entire room.
You also might want to furnish a computer and a phone, although many people will probably use their laptop and cell phone. You could also let the tenant have mail sent to your home. If you do, then you probably can charge more rent. [3] X Research source
Craigslist. You can advertise on your city’s “Office & Commercial” board. Your community newspaper. You can also run a classified ad with your newspaper, whether online or in a print edition. Sharedesk. This website is like Airbnb but for office space. Accordingly, you might not find a long-term renter. Instead, you might rent in weekly increments or whenever someone contacts you. Visit https://www. sharedesk. net/how-it-works/list-venue for more information. Sharedesk charges a 20% commission, but you won’t have to do any of the other paperwork described in this article.
You can also rent to yourself. If you have incorporated, then your corporation could pay rent. Alternately, you could deduct the space as a business expense or as part of an “accountable plan” for employees. [5] X Research source You should talk to a tax professional if any of these options interest you.
Will you be home when the renter needs to use the office? If not, you’ll need to give the renter a key, which means they will be in your home alone. If you aren’t comfortable with that, then you probably shouldn’t rent. Does your renters or homeowners insurance cover someone else in your home? Accidents unfortunately happen. You should check whether they will be covered. [6] X Research source How good are you at asking someone for money? A tenant might be short on cash and not pay you on time. You can try to weed out bad tenants by checking references, but you can’t guarantee that your tenant will be low maintenance. [7] X Research source
Transfer exercise equipment and stored items to the attic or basement. Alternately, if you never use them, then sell them on eBay or Craigslist. Also vacuum carpets or wax hardwood floors and make sure that your windows are properly cleaned. Get rid of any dust accumulation.
You might want to have someone with you at home when potential renters stop by. You don’t know these people and anyone can find an ad online. Inviting strangers into your home is risky. Try to schedule showings on days when your partner is home. Alternately, ask a friend to visit during the showing.
personal information, such as name and contact information Social Security Number current business information, such as name, type of business, and web address information about current business landlord (if applicable) a business reference (name, phone number, email, and relationship to applicant) another professional reference, such as a bank reference
Ask prior landlords if the person pays their rent on time and in full. [9] X Research source Also ask landlords if the person took care of the property. Did they cause any damage beyond regular wear and tear? Ask a business reference how busy they think the person is. A tenant with a thriving business is more likely to pay the rent.
You can find sample consent forms online. Revise one to suit your needs. You may also want to charge for the credit check. In most states, you can charge a reasonable fee, such as $30-50. If you choose not to rent to someone because of information in their credit report, then you are required by federal law to tell them the name and address of the entity that reported the negative information. You should send the applicant a rejection letter explaining this information.
length of the lease whether the tenant has the option to renew the amount of rent security deposit and the conditions for getting the deposit returned whether the tenant can sublease the space or transfer the lease to someone else
You should set a security deposit you feel comfortable with. One or two months would be ideal. [13] X Research source Generally, state law doesn’t limit how much you can ask for as a deposit for commercial space, so you can come to an agreement with the renter. To make things easier, you can put the security deposit in an account separate from your own accounts. This way you’ll know not to accidentally spend the security deposit.
Communication is key. If you’re having repairs made in your home, then let the tenant know.
