Transitioning From Roommate to Landlord

So, I’m 5 months into homeownership and my “To Do” list has somehow expanded as quickly as waistlines in the winter. I’ve had to learn to be realistic and learn to “trim the fat,” so to speak. Having been spoiled for years as a renter, I’m now realizing that changing the air filter, seasonal pest control, winterizing the doors and windows, putting those cover jobbies on the crawlspace vents, etc are responsibilities that now rest squarely on my shoulders. Not that I wasn’t aware of those responsibilities, I just didn’t realize how time-consuming it can become when the list begins to expand. I’ve had to learn to prioritize and make time for those pressing matters and schedule far in advance the seasonal things before they creep up on me. As for responsibilities, general maintenance seems lightweight in comparison to being a landlord.

The thought of my roommate no longer being just my roommate, but my renter can sometimes be a taxing proposition. Not that our relationship as friends has suddenly become more formal, but I’m now realizing that as my tenant her reasonable enjoyment and standard of living are my responsibility, as far as the roof over her head goes. If my water-heater goes out, I might be able to live for some time with cold water until I can get it fixed or work out some other solution. However, with a renter, I’m not the only one to consider. With her living under my roof, as my tenant, I’m now saddled with the responsibility of fulfilling contractual obligation to my tenant. As our agreement states, I “must complete major repairs to necessary systems/services in a timely manner so not to disrupt daily life beyond reasonable limits.”

Occasionally, if the water-heater makes a funny noise, or a major appliance goes down, the panic sets in the back of my mind. Usually, my fears are subsided by the fact that monthly rent checks are profit for me, and usually mean a surplus of monthly funds. That’s the key to making the transition to landlord successful for you; making it a profitable venture, not a venture that is necessary to make ends meet. If it’s something that is necessary, you’re buying too much house and might need to reconsider. I bought a home that I could afford to live in on my own, and I did so with the intention of keeping a roommate to help myself pay down my mortgage quickly. I also knew that if she were to get married or move away, I’d be okay without her.

If you’re a first-time homeowner and you’re single, weigh the risks and benefits of having a roommate to offset the costs of ownership. You may find it’s not right for you, but you may find it is. Speaking strictly in terms of financial benefits, for me, having a roommate made more sense than going it alone even though it wasn’t a requirement for me to pay the mortgage. Before you sign that agreement with your roommate-turned-tenant, think about the weight that responsibility really carries. Ask yourself if you’re really ready for that. However it turns out for you, Happy Homeowning (or Landlording?).

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