House hacking is a new term for an old practice that is becoming increasingly popular in high-end markets. To help pay their mortgage, homeowners rent out a portion of their homes through rental websites or other rental agreements.
You can also ‘boost your income with home-sharing’ ( also known as ‘Booste dein Einkommen mit Home Sharing management’ in the German language) services online.
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These are the best types of properties for renting:
- Two-to-four family homes like duplexes
- A single-room-occupancy house, like a townhouse, that has two apartments per floor
- A basement with a separate entrance, bathroom, and kitchenette.
- A garage apartment in a home
- A home with an attic apartment
- A guest house and a home
Home with additional "suite-style" bedrooms that have attached bathrooms and bedrooms
A home can be modified to allow for a tenant or renter, but renovations will require additional cost. You should consider the time it will take to make your investment back if you are an existing homeowner who needs to modify your home to add an extra entrance or bathroom.
If you're looking to purchase a home, you may be eligible for a larger mortgage loan. This is especially true if you intend to rent out multiple units. To establish a realistic budget, talk to a mortgage lender regarding your plans for renovations or purchases.
There are potential risks to renting any property, whether it is part of your home or investment property. A mutually beneficial lease can help you avoid problems by collaborating with an attorney.
A tenant who fails to pay rent on time, or abuses the property can cause damage to your home and lead you to default on your mortgage payments. You are still the landlord even if you rent a part of your home.