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| *Home>>>Value Investment |
What do you call when a homeowner rents our her spare rooms in her house? |
Homeowner has rental income and was asked how much is her current investment value, yet not to include value of the house where she lives in now. Were they looking for the investment value of the home, meaning how much equity she has in it, rather than the market value of the home itself? sub-let or roommate. bed and breakfast. ho house If she's not to include the value of her house, then she should just provide the details of her other investments. Usually, though, current assets includes the house. Boarding boarding house SUBLETTING! Landlord. Even if they still live in the residence they are considered a landlord unless they are renting the space then it is a sublet. Landlord? Proprietor? room for rent I am confused. Does this person live in a house other than the one she is renting? If she rents another home she is a landlord and is receiving rental income. If she rents rooms out in her own home that she lives in then I think she would be a boarder but I am not certain to the legal title. Either case I think it would be considered rental income. it sounds as tho the owner is applying for a loan and has to fill out a financial statement for the lender. You can call anything you want! Hogs, chickens, anything! You can even call ghostbusters if you want! Calling has nothing to do with homeowners who rent out their spare rooms. She is a land lord/property manager. The net income from rents (gross rent less expenses) should be 'discounted' to find the present value of the 'investment.' The discount rate should be the interest rate on the home loan (or a rreasonable estimate of it). The math is as follows (assumes a perpetuity): If there is a lease or a rental agreement, on paper, then she would be a Landlady. If not, she is a roommate. |
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