Originally Posted by Rhys
I'm want to rent out the Carriage house in the back of my property, I'm curious if anyone here has done it, and what you had to go through to make it legal. I'm fine just reporting the rent as income, but is there anything else I have to do stay on Uncle Sam's good side?
You need to take a good look at the person/family you plan to rent to, don't be afraid to check their background and income and be sure to spell out everything in a lease......I rented my house while doing an extended stint on the road in my motorhome, and had to end up putting the belongings on the curb and lost all the rent monies.
Plan to collect a month's rent in advance plus another month's rent for damage insurance (which you return after the end of the lease if you find your property as in the beginning.) Don't take anything for granted with them, even family and friends..........renting is a business. Sometimes it's not worth the hassle unless the income offsets the headaches....