As the economy seems to sink lower into the ground than ever before, more homeowners are defaulting on their mortgage payments. Consequently, these homeowners are finding themselves face to face with foreclosure. If you fear foreclosure and feel that the only alternative is selling your home, think again. Homeowners that find themselves short on mortgage payments have created an ingenious alternative to foreclosure and selling: sharing a mortgage by finding a roommate.
Photo courtesy of borman818
Roommates are no longer reserved for college students, nowadays even mature families with children are considering renting out a vacant bedroom in their home to meet their monthly mortgage payments. Are you opposed to renting out a bedroom in your home because it seem like a ludicrous invasion of privacy? If so, would you be willing to reconsider if I informed you that you could rightfully charge your new roommate in the range of $400 to $800 per month? Receiving that amount of money per month can be the difference between defaulting on your mortgage and making timely payments.
Understandably, the more amenities that you include in your roommate’s rental agreement, the more you can charge. Considering that you are likely in a time crunch to make your next mortgage payment, it is advised that you make the offer as attractive as possible. Paint the room a neutral color, if possible offer your prospective roommate the option of a furnished or unfurnished room and include certain monthly bills that are within your budget. Include utilities in the rental agreement; it will command much more attention. This is for the sake of your mortgage payments, so being a bit more lenient pays off. An offer that includes electric, heat and cable will be much more appealing to a prospective roommate than a listing where no utilities are included. Below are two examples of possible roommate listings; one is guaranteed to get a higher response rate than the other.
Sample Listing A
“ Spacious bedroom with private bathroom and balcony for rent. The monthly rent includes all utilities and extras: electric, heat, internet, cable and phone. Additionally, all interior living space, laundry room and backyard will be shared. Reserved parking space in garage included.”
Sample Listing B
“Bedroom for rent in family home. Kitchen, bathroom and living space will be shared. NO pets or smokers allowed. NO overnight guests and NO guests allowed after 8pm. Curbside parking is available.”
It’s clear which listing would garner more interest. If Sample Listing A were located in an in-demand metro area, the homeowner would be able to command a minimum of $800 per month and the vacancy would likely be filled within 30 days. This homeowner has the right idea and is on track to affording their mortgage payment. Sample Listing B, although located in a similar area, would only be able to command a maximum of $400 per month and the room would likely remain vacant for several months. Due to this home owner’s restrictions and inflexibility, the listing is unappealing and they would likely end up defaulting on their mortgage because a roommate could not be found.
In order to reach a large pool of prospective roommates, you must market your listing aggressively. Marketing methods that are both effective and inexpensive are posting your listing on Craigslist.com, purchasing ad space in your local newspaper, word of mouth and posting flyers in high traffic areas, such as: a supermarket, beauty parlor, car repair shop and medical office. Some homeowners even go as far as to advertise the fact that all funds will go towards their mortgage payment. If you are relentless in your marketing efforts and offer an appealing rental agreement, sooner than later your vacancy will be filled and you will be on your way to affording your mortgage.
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