Own House - Might Be Renting Out Rooms
I have a friend who owns and lives in a house in NY. After a divorce he's been left pretty much strapped for cash. I am 1 of 2 friends who wish to live there and pay him monthly.
He wants to know what his legal obligations are? Does he have to get some kind of license? What about renter's insurance? Does he need to have a contract or lease made up?
Any advice would be appreciated.
Prepare written leases (credit checks even with friends), verify current homeowner's policy liability coverage is adequate, not likely a license is required, unless the municipality has some arcane codes and such...visit with his CPA to get some direction on tax reporting treatment of partially deductible component of a primary residence (depreciation) available.