by: KATIE MARASCO, ESQ.

In these tough economic times people are resorting to all kinds of tactics to bring in a little extra cash each month. Many people have started renting out that barely used guest house or granny flat in the back, and often times empty rooms in the house are made available to renters. It isn’t a bad move, a few hundred dollars extra each month is hardly something to scoff at. But there are some things to think about.

First of all, get that tenant to sign a lease. The last thing you want to deal with is someone arguing over rent, or overstaying their welcome. Having a signed lease protects you and the tenant as well. Second, that rent check isn’t just tax free money. You must claim it on your tax filing; however rental income has a different treatment than your regular paycheck.

For help with a rental agreement or lease and on your taxes visit LawInfo to find an attorney in your area who can help.