Renting a Room on a Single Family House

[Jim Garcia]

I bought a single family home April 2018 using the VA LOAN. It is my primary place of residence and the only property I have.

I’m planning on renting out 1 of my spare rooms to a close friend. I pay 1,300/mo on the mortgage and he’s going to pay me a 600/mo flat rate.

- What are the legal, tax and other considerations to take into account when doing this?

- Even though he is a close friend, should I do a month to month lease? Is this even necessary?

- Should I open a business checking account to have all of his payments go there for accountability purposes?

- What are the things that I can deduct from my taxes now that I’ll be renting out a part of my property?

Thank you!