Quick answer
Before you rent out a room, check your lease, mortgage, HOA and local rules, since many leases need landlord approval and some cities regulate short-term rentals. Screen the person carefully, write a room rental agreement covering rent, deposit, utilities and house rules, and keep records. Rent you receive is generally taxable income, and you can deduct a share of related expenses.
Steps
- Check the rules. Lease, HOA, mortgage terms and local short-term rental rules.
- Set the rent. Compare similar rooms nearby; decide what utilities it includes.
- Screen applicants. Ask for references and income information and apply your criteria consistently.
- Write an agreement. Rent due date, deposit, notice to leave and shared-space rules.
- Keep records for taxes. Rental income and expenses.
Common questions
Is renting a room taxable?
Generally yes. The IRS has rules for renting part of your home, and you can deduct a portion of expenses.
Can I rent a room if I rent my apartment?
Only if your lease allows it or the landlord agrees. Subletting without permission can lead to eviction.
Short-term or long-term rental?
Short-term rentals can earn more but face more local rules and turnover work.
Where these facts come from
Sources checked October 10, 2026. Programs and rules change; confirm details with the agency or company before you act.
Disclosures
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