Do this quick and simple formula: (Your Income - Your Expenses) = X
Rent a room:
If X is a negative number for you, then you quite simply just need more income or you need to cut some expenses! One way to quickly generate some temporary income is to rent out a room of your house. Usually you can find a roommate quite easily by looking through the paper classifieds, or by posting ads on websites like www.roomates.com or www.CraigsList.com.
If you do decide to rent a room out, you'll want to make sure you thoroughly prescreen your rooming candidates because you cannot afford to deal with someone that you will need to take care of financially in the end. One other thing that I highly recommend is to make sure that you have a written contract between you and your roommate, that spells out the deposit, monthly charge, duration of the lease, restrictions or house rules and by what terms you can terminate the lease. This is so fundamental, however most people new to this overlook this very important step.
Click here to see an example of rooming contract
- Always make sure to obtain your deposit upon signing the contract. (Do not give in on this) If you accept partial payment you forfeit you right to collect the full amount.
- Make sure any agreements you make with your tenants are in writing, signed and dated by both parties.
If you cannot find a good roommate quickly enough, or you find that you need more income then this solution will provide, then please read over our other solutions. You may find one that will work better for your situation.
Some options that may work for you are:
- Put your home or property up for sale
- Lease option your home or property
- Contact a real estate investor
If your home or property is already scheduled to be sold at auction: