Live in tenant - Suggested practices, guidelines, etc.

[Ankit Gupta]

I spent some time searching the forums and the main website regarding this topic, but I am new here, so excuse me if I missed it.

I own a condo with 2 bedrooms and 2 bathrooms. I only use half of the place and so I'm looking to rent out 1 of the rooms. I had a roommate for the prior 2 1/2 years, but it was a very responsible friend that I've now known for 8 years, and so it was a unique situation. I'm now looking for a roommate, potentially one that I don't know already.

My goal is to protect myself and set this up in a way that I do everything possible for a good outcome.

I started out by reading this: http://www.biggerpockets.com/renewsblog/2013/01/27/tenant-screening/

This was great, because now I know I can run a background check, get a credit report, and have an application with information like previous landlords, references, etc.

Because they're going to live with me though, things are a little different. If they aren't respectful, then I will have to get rid of them, and I can't imagine this being an easy process, because I would live with them. Obviously, the goal is to not have issues, but how can I protect myself in the application process and after? Do the same rules of a normal rental property apply? Should I consider a "month to month" lease for both of our benefit in case the situation doesn't work out?

Any advice is appreciated - thank you.