Homeowners feeling the pinch from the stumbling economy are tapping a source of cash close to home: their basement, attic or extra bedroom. If the idea appeals to you, be aware that the number of legal hoops you’ll need to jump through depends on whether you create a separate unit in the basement or share your living space with a housemate. If you rent out a separate unit — with a kitchen and full bath ?– you’ll be subject to municipal rules that govern the conversion of a single-family dwelling into a multifamily one, as well as landlord-tenant laws. But if you share your space, you’re probably off the legal hook (although you should still check out any zoning or homeowners-association restrictions).
Before you list your unit for rent, check out the amenities and rents for similar units that your competitors are advertising. The most popular spots for ads are Craigslist or www.sabbatical.com; local classifieds, list serves and bulletin boards; and the housing offices of local employers and colleges. Most landlords include the cost of utilities in the rent or set a flat monthly fee.
