To rent a room and boarding to family in your home provides untaxed extra cash. Family members could save money they would otherwise have paid if they had rented premises elsewhere from your home. The family is kept together under one roof. Your children who rent room and boarding in your home learn social responsibility under your watch.
Set an agreement between yourself and the family members on the nature of the relationship you intend to have. Whether you still consider them as part of the family or tenants will determine if you charge the rent and boarding according to the market value or offer a family discount. This arrangement accommodates the boarders as both family and tenants.
Determine how much space you want to rent. Some family members wish to come on board with their spouses and sometimes children. The amount of room you rent depends on how big your premises are. Give consideration on your personal space. There may be areas in the compound you wish to reserve for yourself.
Calculate how much money you expect to receive and deduct it from your mortgage, if you have any. The net value of the property is determined by the rent collected per month. As the boarders and lodgers are family members, you ought not to be concerned with rental taxes because the house is considered family property.
Take into account the daily expenses incurred in running the household. If the family member expects boarding services such as food, cleaning and laundry, include this in the monthly rent. Where an agreement for family discount has been reached, the tenant may contribute to the direct expenses of purchasing food but discounted on the service of its preparation.