If you have a house with extra rooms, starting a boardinghouse business may suit you. Boarders typically are charged at least $100 per week to rent a bedroom. This fee is a lot cheaper than staying in a hotel. Boardinghouse owners charge up to $50 more per week if food is served. If you already own a big house and furniture, your initial investment can be as low as $500. This business has the potential to generate up to $60,000 per year.
Instructions
1. Contact the office in your county or municipal government to learn of any requirements you must fulfill in order to open a business. Most local governments require a business license, but operating a boardinghouse may involve additional requirements.
2. Verify that the neighborhood in which you reside is zoned in such a way as to allow you to operate a boarding house. If you are a member of a community or neighborhood association, check the bylaws to ensure you would not be breaking a covenant by taking on boarders.
3. Develop written policy. Clearly state when rent is due and stipulate penalties for late payment. Define kitchen use policy. Develop a procedure for evicting boarders. Note acceptable noise level. Also mention number and frequency of visitors allowed. Give each boarder a copy of the policy.
4. Screen boarders. Create an application. Get the full name, previous address, references and Social Security number of each potential boarder. Do background checks on all applicants prior to renting the room. If you do not know do a thorough background check, pay a company for the service. Contact your local law enforcement and ask about criminal background checks.
5. Work hard. Keep your home clean at all times. Having boarders will require cleaning restrooms and living room twice a day. Your kitchen use policy will determine the cleaning schedule for the eating area.
6. Collect rent. Be firm. Stick to your established policy. For example, if $100 is due each Friday, charge $15 extra for payments made on Saturday. If the payment has not been received by Monday, consider asking that boarder to leave.
Tags: background checks, kitchen policy