Question about renting granny units.

2 Replies

1. Why is it bad to accept cash? You can give them a recipe right? Besides having cash on you and getting robbed.

2. Why do some cities require rental property inspection? Is this requires? How do they even know if you are renting it out? What happens if you don't do this?

3. Do you need a business license? To rent out?

4. Example, I am house hacking a sfr, i rent out two rooms. Do i need a rental inspection? Pro and cons?

5. How do i get my rental income to show on the property for appraisal? Is it by what i declare in my tax return?

6. If i buy a house and has a unpermitted granny unit. Can i rent it out? Can i use the income for the property for appraisals if i pay taxes? Pro cons?

7. The eviction process only works if you you have a rental agreement and how does it end up on the tenant record? Court order?

YOur post is a multitude of questions.

Give receipt if you accept cash,, YES.

Accept cash.. well only if you have to... I would recommended checks or money orders only.

Go to your state land lord law website and get the correct answers for your state guidelines.

Go to your city zoning department and find out what their regulations are for renting out room(s) in  a Single Family Home,  and can you do it legally at all as owner occupied? do you need egress for lower level if someone is living in that area? what's the occupancy limit(s) per city. do they require a rental license, what's the fee, and when is inspection. prior to you renting is usually the situation.

Your insurance company will surely be involved.

How will anybody know if your renting it out or not...Neighbors are noisy,, to much traffic they will make complaint to city ,, you get inspected,, 

From the top: 

Legal businesses file for a business license, SFR & MFUs alike.

Legal businesses get business insurance which include liability insurance to protect you.

Being an absentee LL, tenants can't offer me cash except upon move-in and that fits me just fine.  As part of my tenant screen process, I verify employment and income with pay stubs and/or bank statements, without which the application is denied.  Those getting paid under the table are - - (expletive deleted) despicable and cheats.  So it's ok for me but not them???  What goes around, comes around;  play well with others.

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