Lease for Owner Occupied Property

[Will Hampson]

Hey everybody, need a little advice from experienced people.

I bought a 4 bedroom single family home last summer. I rent out 2 bedrooms to friends and keep the master and 4th bedroom as an office. One of the friends is moving out and I will be looking for a new roommate whom most likely would be a stranger. As such I'm keen to get an appropriate lease in place. Because it's an owner occupied property, I am wondering if this changes what kind of lease I should use and if there are other considerations I'm over looking. (I know I should also get the remaining friend on a lease as well).

Thanks in advance for any help or guidance.

[David P.]

Hi @Will Hampson it is great you are renting out rooms, but yes you should have a good lease. Leases are what you want; and even if you are owner occupied, the lease should outline the expectations expected by you the owner.  Renting to strangers opens you up to other things, friends/visitors, cleanliness, pets, smoking, drinking etc.  

I would suggest you search for leases on the internet and even have a Real Estate lawyer review it so that you don't violate any laws, and that it holds up when/if you have to evict the tenant.  I would also highly suggest that you use MySmartMove.com - you can get to it by clicking on "Resources" in the tool bar above and selecting "Tenant Screening."  Let the potential tenant pay for the credit and criminal background check for $30 if they are serious.  This provides an independent scale of 1 to 5 - 1 you should not rent and 5 is a great risk.  Have a good application and follow-up on all information contained within the application, this process will help you understand the new tenant that will live with you.

Please note, this information is not financial nor legal advice and you should talk to a professionals in these fields.

Good luck, and please remember to VOTE on reply's if you think they have helped.

Hope you have an excellent future!

- Dave