Isn’t it funny how that space you so wanted 30 years ago seems all a bit much today?

Welcome to the empty nest, that stage in life where your kids have flown the coop and where you and your partner are examining your next phase in life. You may be looking at retirement or far from it. One thing’s for sure, you’re starting to wonder if the house you’re in is too big for your reduced family size.

Renting out a basement apartment or a bedroom is a great option for empty nesters. Not only does it provide added income, but it can also offer solitary empty nesters company or at the very least a psychological buffer knowing that they’re not home alone.

Here, according to real estate investor Don Campbell, are some aspects you need to consider before hanging up the ‘For Rent’ sign.

Privacy

You will likely have to forgo some of it. Is that something you can live with? Will the extra income be worth your diminished privacy? You need to decide if you can handle having a renter in your residence especially if your rental space doesn’t come with its own separate entrance.

Family not so much

It’s difficult to enforce eviction or collection rules with a family member without it ruffling feathers throughout the family. Avoid if at all possible.

Sign a lease

A properly written lease signed by you and the tenant or tenants is a must. Make sure it outlines the rules, late rent penalties, expectations, and length of term.

Don’t lowball

If you offer the lowest rent you attract tenants whose only focus is on dollars. This will likely lead to quick turnovers as your renter leaves for the next lowest rental. Look online at other similar rentals in your area and set your price in the middle or higher end.

Do your research

Read up on landlord-tenant legislation so you know the rules. You should also bone up on local municipal bylaws and learn about guidelines and standards for fire and building safety, zoning and permits. Call your municipal office or go online to find out more.

Inform insurance

Be sure to let your home insurer know that you are renting out a portion of your home.

Research the tax repercussions

Once you become a landlord you have to claim your rental income on your taxes.  Also know that a portion of the capital gain when selling the property could be deemed taxable.

Being a landlord isn’t for the faint of heart. You will want someone who pays their rent on time, leads a reasonably quiet life and respects your property as if it was their own. While that may sound like a tall order, how you seek out a tenant can make a difference.

Advertise your rental with a sign on your property or house. Consider placing a classified ad in newspapers or post a flyer in grocery stores, libraries and places of worship. Be sure to let your friends, family and neighbours know that you’re on the hunt for an ideal tenant because sometimes word of mouth is the best advertising.

If you are looking for a student, contact campus housing offices at colleges and universities near your home. And don’t forget online platforms.