You have bought an additional room and will use the additional money. Do you have to tackle a roommate in retirement? With the median rental worth of a two-bedroom unit within the U.S. costing $1,887 in February 2025, it is perhaps tempting to think about.

In case you do select to open your house to a roommate, you will not be alone in making that selection. Individuals over 65 are the fastest-growing age group taking in roommates of their houses, based on SpareRoom, an internet platform for folks to seek out roommates.

Listed here are a couple of factors to think about earlier than taking the step of dwelling with somebody.

Benefits of Having a Roommate

Having a roommate (or a number of roommates) will be a straightforward strategy to scale back your value of dwelling—for many individuals, housing is considered one of their largest month-to-month bills.

«Even a couple of hundred {dollars} a month can have a big effect and that may permit you to retire a bit earlier or spend extra on stuff you get pleasure from,» advises Justin Pritchard, a licensed monetary planner at Strategy Monetary.

However you have to to pay taxes on that cash.

«The most important factor to recollect is that it’s important to report the lease as revenue. You possibly can take deductions to scale back some or the entire revenue from being taxed, however irrespective of what, it provides a layer of complication to your tax return,» says Tara Unverzagt, president and senior monetary planner at South Bay Monetary Companions. «In case you file your self, you could want knowledgeable to do it accurately.»

Along with the cash, having a roommate could also be a great way to extend social interplay as a result of many seniors report fighting loneliness.

A 2023 College of Michigan survey discovered that greater than one-third of adults ages 50 to 80 reported feeling remoted over the previous 12 months. Moreover, one-third mentioned they’d rare contact, which was outlined as as soon as every week or much less, with folks from exterior their dwelling in 2023.

Having a roommate may assist some seniors stave of emotions of isolation and loneliness as a result of dwelling alone.

Disadvantages of Having a Roommate

You will not have as a lot privateness if you invite a roommate to stay with you.

«Is privateness crucial to you? In that case, you in all probability need to keep away from going the roommate route,» advises Eric Maldonado, a licensed monetary planner and proprietor of Aquila Wealth Advisors.

There could also be disagreements with a roommate, one thing you do not have to fret about in case you stay alone.

«In any shared dwelling area, there could also be conflicts concerning cleanliness and the best way the area is utilized. And one of many greatest downsides is that if it would not work out and also you need to get the tenant out of the house, it could be very uncomfortable throughout the course of, which may drag on for fairly a while,» says Sebastian Frey, a dealer affiliate at Compass Actual Property.

Discovering a Roommate

Begin by reaching out to people who you understand and allow them to know you might be in search of a roommate.

«When you have household or associates native you would strive letting them know you might be in search of a roommate. If you’re a member at a church or social membership you would let folks know you might be in search of a roommate and should even ask to put up an announcement,» Maldonado says.

You could want to place an internet advert detailing the room you could have for lease.  

«You possibly can put up your room on Craigslist or different native lodging search web sites. If you’re in search of somebody of a sure age or stage of life, there are in all probability civic golf equipment or boards you possibly can put up in on-line that cater to these age teams,» Maldonado advises.

Vetting a Roommate

You will need to try the background of a possible roommate to ensure they’re an excellent match for you.

«You’d need to have an excellent vetting course of. Persistence and taking your time [are] key right here. Do a background test, comply with up with references, and have a pair conversations first,» Maldonado says.

Focus on with a possible roommate your schedule and what you anticipate from somebody dwelling in your house.

«Be sure to clearly define your dwelling preparations, your schedule, and your expectations earlier than committing to renting out a room. Take the time to decide on a roommate who you suppose you will get alongside effectively with,» Matt Hutchinson, Communications Director at SpareRoom, says.

Getting ready for a Roommate

You will have to get the room you might be renting out prepared for a roommate and write up a rental settlement.

“There’s some administrative setup you’ll have to do, together with making a written settlement, making ready your room, and ensuring you’ve learn up on the state and native legal guidelines and tax guidelines. However the monetary reward is effectively price your time,» Hutchinson says.

Undecided how a lot to cost? SpareRoom offers an inventory of average rents in metro areas round the USA.

«Check out different room listings in your space or common rents to see how a lot you would cost to your room,” Hutchinson advises.

The Backside Line

In case you like firm and have a spare room in your house, you might be able to complement your retirement revenue by renting a room. Do a background test on all potential renters and ask for references.

Seek for renters on-line, inquire with family and friends, and ask round at social golf equipment. You are in search of somebody who will probably be an excellent match to your dwelling. Do not rush the method. Be sure that to scrub and prep the room and put together a rental agreement. As soon as you discover the suitable particular person, the room is theirs and the month-to-month lease test is yours.