Three issues not discussed. One is the emotional aspect. Do you want to come HOME to where someone has been sleeping and you know what else in your own bed in your own bedroom? Eating out of your dishes and spilling food and drinks on your personal chair? Finding your favorite cooking utensil missing? You have essentially transformed your personal space into a part time residence you share with others. Do you really want that?
Another issue, speaking as an attorney, is the potential for gigantic legal problems. Check with your insurer. Your home insurance will have to change, and it may not include personal property (household furnishings) when you convert to rental property. You will need at least a 2 million dollar umbrella policy to protect you from liabilities that you now do not have. Another point is if the renters declare bankruptcy while renting from you, you may not be able to evict them and they may not have to pay rent. The process could take two years before you could have YOUR house back. Do you want that risk?
The third issue is taxes. By renting out your primary residence, you have instituted significant tax consequences including paying capital gains tax on an asset that was exempt from that tax. Any gains from the rental (the rental income minus actual expenses) is taxed, and could increase the tax you also now pay on other income.
My recommendation is to buy a rental house if you want to be a landlord, but keep your primary residence out of a rental arrangement. The risks and tax consequences do not make it as lucrative as it seems on the surface.
