If you looking for a way to make some extra money, and idea well worth considering is signing a room rental contract. Let me explain. You see, if you have a spare room in your home, you could earn thousands of dollars in additional income yearly by renting out that room to a trustworthy individual. Before you go forth with your decision to rent a room, consider what type of person you want to rent to as well as what the house rules will be.

Make no mistake about it, by spelling out the house rules in a room rental contract, you’ll be protecting yourself in the long run. Plus, by letting the renter know up front what is expected of him or her, you’ll eliminate hassles and problems later on down the road. The contract should have a spot for the renter to list at least three professional references with relevant ways for you to contact them. It’s also smart to get references from their current employer and their bank.

The room rental contract that you both sign should state exactly how much rent is due and when it should be paid. By the same token, you should specifically any late fees for rental payments not received on time and what actions will be taken in the event the renter defaults. State the terms of agreement which can be whatever you choose. You may decide to rent on a monthly basis, or provide a six month lease or only accept contracts for a full year. The terms of the room rental contract are entirely up to you.