When it comes to renting out part of your home there is a lot you need to expect for income and repairs in general. Some benefits for doing this can include having extra money, some oversight, tax benefits, and occupied property. However there are also some drawbacks involved which include business costs, legalities, taxed income, and damage affects to your living situation.
- Certain expenses that you would ordinarily bear individually can be shared with the rental apartment.
- Starting costs associated with turning a raw space into a fully-fledged legal apartment can be more significant than many people realize.
- While many people may think of the rental income as “extra cash in the pocket,” this extra income is taxable, just like any other small business revenue
“You want extra income and you just happen to have extra space in your house. What could be more logical than turning a portion of your home into a small apartment and renting it out?”