Can I rent rooms in my property?

[Jonathan Blandino]

Hey, I was planning on purchasing a home in the area I am located currently since it looks like I will be out here for a 1 -2 yr contract and the property taxes are low (compared to NJ, but who isnt) and townhouses are decently priced. My employer brings in hundreds of people a year looking for rentals and rooms during their contract period and I thought I would capitalize by buying a townhome and renting out the rooms as my landlord is currently doing. I would live in 1 bed room and rent out the other 2-3 rooms. I just want to know how I can find out if this is legal to do in my area. Most of my cowokers rent out rooms and it seems a common practice but still want to know if this is ok as I would like to have leasing agreements. Also am I allowed to rent within the first year if I purchase the home through an FHA loan? I know you need to live in the home for the first year which I will be doing but I dont know if I can rent during this period?

[Marcia Maynard]

Be sure to have signed rental agreements. I suggest month-to-month for this scenario. You will want an easy out if you happen to get a rogue roommate. I rented out rooms in a house that I rented, with the owners permission, to medical students doing externships in Seattle back in the 1980s. Worked out great for them and great for me. I provided the rooms fully furnished and the rent included all utilities and household supplies! Each person was provided with a kitchen cupboard and their own shelf in the refrigerator. Typical stay was for 3 months. Worked out great.