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Renting out a rental?

If someone rents a house are they allowed to rent out the rooms? If so what are the fees (insurance, permits, licenses, ext) involved? A friend tells me it's like thousands of dollars to do all this, but if that's true I don't see how anyone would ever make profit or even break even.

Update:

If someone is doing a rent-to-own on a house, or takes out a loan to buy the house, and then makes a monthly payment of say 500 a month, is it okay to then rent out 3 rooms in the house for 350 each, and if so would their be room for profit with all the legal fees that a person would incur?

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  • 6 years ago
    Favorite Answer

    It all depends on your leasing contract. Some leases allow you to sublet rooms while others don't. There aren't any fees for permits or licenses but you may have to increase your insurance. You, as the primary renter, are still responsible to the homeowner for any damage that your tenant may do the property.

  • Anonymous
    6 years ago

    "If someone is doing a rent-to-own on a house, or takes out a loan to buy the house, " Those are 2 very different things.

    If you are renting or rent to own - no subleasing is typicality not allowed & is NOT allowed at all without landlord approval. In a rent to own you still have a landlord.

    If you buy with a standard loan then yes. Renting out rooms in a home you own is fine.

    Unless you live in a city that requires permits to rent there are no extra fees. You only need a license to rent out property for someone else. You should have insurance no matter what. Your friend is confused. NO it does not cost thousands. There are no legal fees to incur unless you need to evict someone.

  • 6 years ago

    I'd check the local laws, especially find out if anyone has been busted for that. Your community dictates what is enforced and what is ignored. But that's not sound legal advice..i got away with it.

  • R P
    Lv 7
    6 years ago

    What does your lease say about subleasing? That is where you start.

    If the lease is silent on the issue, contact your LL to ask if he will allow you to sublet. You are going to have to get his written permission before anyone moves in, regardless if they sublease or if they are added to your lease.

    Source(s): FL landlord
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  • Anonymous
    6 years ago

    what you are referring to is what's called "sub letting" and it is up to the landlord of the property if he/she will allow any sub letting ; the only fees would be the cost of splitting the rent, utilities, etc between the # of people living there...........and everything needs to be in writing !!! NO verbal contracts as that is not legal

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