It is legal on Mckinney Texas rent a room in my townhouse with conventional loan?

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It is legal on Mckinney Texas rent a room in my townhouse with conventional loan?

I am buying a townhouse as my primary home using conventional loan. Can I rent a room? It is legal?

Asked on November 26, 2017 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

As a general matter, it is legal: the law does not restrict renting out rooms in financed or mortgaged property. That said, you need to check the following before you do this:
1) Do the terms of your mortgage prevent this? If you signed a mortgage which states you can't rent part of your home, even if you are still living there yourself (primary residence), you contractually agreed to not do this.
2) Is the townhouse part of a HOA? If so, check the bylaws, rules, etc. for what the HOA permits.
3) Check your municipality's local ordinances: local zoning rules, other local ordinances, etc. can either bar renting out rooms or (very commonly) require you to register your home as a rooming house or as containing a rental unit.
4) You will likely have to buy additional or different insurance, since primary residence homeowner's insurance may not cover any claims caused by or involving a tenant or their guests.


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