Security Deposit

[Tripp Drummond]

So I have a friend of a friend that is moving to Orlando and he is looking for a place to live. I just bought my first house as a 23 year old with an fha loan and I was planning on living in it for a year and a half by myself then begin renting it out. However, I had this friend approach me asking me if his friend could possibly rent a room in my house. After contemplating, I finally decided that it would be stupid not to let him rent out a room given my current financial situation. I am obviously going to charge him the market rate for the room but my question is what is the best way to go about the security deposit and what would the appropriate amount be? Should I charge first and last months rent up front or should I just ask for a security deposit and first months rent? Any advice would be greatly appreciated.

Thank you