It’s important to make an honest appraisal of the projected income against the cost of possible repair and maintenance, not to mention the potential of deadbeat tenants who may not pay the rent or who may cause costly damage to your property. If the property is almost paid off, in reasonably good condition and is in a safe neighborhood, then renting may be a very good idea. If not, you might consider selling up before setting off down the somewhat risky path to being a landlord.

Screening potential tenants is one of the trickiest aspects, but also one of the most important considerations associated with first-time rentals. Don’t trust your gut feelings – looks and charm are terrible indicators when it comes to finding a reliable tenant. Make absolutely sure your potential tenant has a solid history of paying their bills. An application form is still one of the best ways to weed out unreliable prospects and there are free standard tenant application forms available online. Be sure to check multiple references among the applicant’s former landlords and employers and take a little time to authenticate the addresses, names and records provided.

First, it’s your roommate’s gender. Some people are quite comfortable with sharing their accommodation with either gender, but you shouldn’t be too quick to accept anyone. Think about how someone from the opposite gender could affect your current household, in terms of existing roommates, varied lifestyles, personalities, certain gender-oriented characteristics etc. The age of your roommate will be another point of consideration. People of different ages hold different viewpoints, interests and living patterns.

Specify whether your household is smoking-friendly or non-smoking. You don’t want any arguments after all the living arrangements are made. Drinking habits should also be discussed prior to accepting anyone as a roommate, because if the grocery expenses are shared, either party may not be happy about spending money on alcohol.

Personalities influence a group’s dynamics and interaction pattern. If you have several roommates and some of them are quiet and laid-back while the others are loud and outgoing, you will definitely notice some friction between the two types. Ensure you make a thorough selection by understanding each person’s personality. Hobbies and interests are equally important in this equation, because if tastes in entertainment, food and activities differ considerably among the roommates, conflicts are quite likely to occur.

Be clear about the roommate’s expected length of stay. Some rentals are provided on an annual basis, while others are just monthly or weekly. Clarifying such issues and binding the agreement on paper are essential if you are to have a good relationship with your roommates. Additionally, you should look for a roommate who has a similar entertaining style to you. If you prefer a quiet household and your roommate constantly entertains people, it will not work out very well.