What we verified in “Renting out a room or unit in your home: the basics”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. HUD explains that housing discrimination is illegal in nearly all housing, including private housing, and that the Fair Housing Act prohibits discrimination because of race, color, national origin, religion, sex, familial status and disability.

   Sources 1 · Housing Discrimination Under the Fair Housing Act: 'Housing discrimination is illegal in nearly all housing, including private housing'; 'The Fair Housing Act prohibits discrimination in housing because of'; 'Who Is Protected?' · Checked October 17, 2026

2. The Fair Housing Act makes it unlawful, because of race, color, religion, sex, familial status or national origin, to refuse to rent or negotiate after a bona fide offer, to set different terms or conditions, or to tell someone a home is not available when it is; and, for people with disabilities, refusing to make reasonable accommodations in rules, policies, practices or services counts as discrimination.

   Sources 2 · 42 U.S.C. §3604(a), (b), (d) and (f)(3)(B): 'To refuse to sell or rent after the making of a bona fide offer, or to refuse to negotiate for the sale or rental of'; 'To discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling'; 'is not available for inspection, sale, or rental when such dwelling is in fact so available'; 'a refusal to make reasonable accommodations in rules, policies, practices, or services' · Checked October 17, 2026

3. The Fair Housing Act makes it unlawful to make, print or publish any notice, statement or advertisement about renting a home that indicates a preference, limitation or discrimination based on race, color, religion, sex, disability, familial status or national origin.

   Sources 2 · 42 U.S.C. §3604(c): 'To make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex'; 'or an intention to make any such preference, limitation, or discrimination' · Checked October 17, 2026

4. Federal law exempts from section 3604, except the advertising rule (3604(c)): a single-family house rented by its owner, if that private owner owns no more than three such houses and the rental is made without a real estate broker or agent and without an advertisement that violates the advertising rule; and rooms or units in a building where no more than four families live independently, if the owner lives in one of the units.

   Sources 3 · 42 U.S.C. §3603(b): 'Nothing in section 3604 of this title (other than subsection (c)) shall apply to'; 'such private individual owner does not own more than three such'; 'without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman'; 'without the publication, posting or mailing, after notice, of any advertisement or written notice in violation of section 3604(c)'; 'rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence' · Checked October 17, 2026

5. HUD's advertising rule applies to all written or oral notices or statements by someone renting a home, including applications, flyers, signs and posters, and prohibits words, phrases, photos, illustrations or symbols that convey a home is or is not available to a group of people because of race, color, religion, sex, disability, familial status or national origin.

   Sources 4 · 24 CFR §100.75(b) and (c)(1): 'The prohibitions in this section shall apply to all written or oral notices or statements by a person engaged in the sale or rental of a dwelling'; 'Written notices and statements include any applications, flyers, brochures, deeds, signs, banners, posters, billboards'; 'Using words, phrases, photographs, illustrations, symbols or forms which convey that dwellings are available or not available to a particular group of persons' · Checked October 17, 2026

6. California's official tenant guide explains that if the owner of an owner-occupied single-family home rents a single room to a roommate or boarder and no one else pays rent to live there, the owner is not subject to California's Fair Employment and Housing Act or the federal Fair Housing Act, with one exception: the owner cannot make statements, notices or ads indicating preferences on grounds such as race, religion, national origin or familial status; nor may the owner discriminate based on age, citizenship, primary language or immigration status; the ad may state a preference by sex if living areas such as the kitchen, living room or bathroom will be shared; and no law allows advertising preferences such as religion or whether the person has children.

   Sources 5 · California Tenants (2026 edition), 'Limited exceptions for single rooms and roommates', pp. 21–22: 'If the owner of an owner-occupied, single-family home rents out a single room in his/her home to a roommate or boarder, and there are no other roommates or boarders paying rent to live in the household'; 'the owner is not subject to the California Fair Employment and Housing Act or the federal Fair Housing Act'; 'the owner cannot make oral or written statements, or use notices or advertisements which indicate any preference, limitation, or discrimination'; 'the owner cannot discriminate on the basis of age, medical condition, citizenship, primary language, immigration status'; 'may express a preference on the basis of sex, if living areas (such as the kitchen, living room, or bathroom) will be shared by the roommate'; 'whether they have children. No law allows advertisement for such preferences' · Checked October 17, 2026

7. According to the CFPB, federal law requires a landlord who denies an application because of information in a tenant screening report to tell the applicant through an adverse action notice, given in writing, orally or electronically, with the name, address and phone number of the company that provided the report and an explanation of the right to a free copy if requested within 60 days and the right to dispute inaccurate information; and an adverse action can also be requiring a co-signer or a larger deposit or higher rent than other applicants.

   Sources 6 · What should I do if my rental application is denied because of a tenant screening report?: 'a landlord who denies your tenant application because of information in a tenant screening report is required to inform you of that fact'; 'Be given in writing, orally, or electronically'; 'Provide the name, address, and phone number of the company that provided the report'; 'Explain your right to a free copy of the report, if you request it within 60 days of the adverse action'; 'Explain your right to dispute inaccurate information'; 'Requiring a co-signer on the rental agreement or lease'; 'Requiring a larger deposit or a higher rent payment than other applicants' · Checked October 17, 2026

8. The Texas Attorney General says the most important source of information about the landlord-tenant relationship is the rental agreement, whether written or oral; that the lease should be read carefully before signing; and that if both sides agree to a change, they should write it into the agreement and both initial it.

   Sources 7 · Renter's Rights: 'The most important source of information about your relationship with your landlord is your rental agreement, whether it is written or oral'; 'Be sure to read the lease carefully before you sign it'; 'write it into the agreement. Both you and the landlord should then initial the change' · Checked October 17, 2026

9. The Texas Attorney General explains that, by law, a landlord cannot refuse to return the deposit without a valid reason; that the tenant must give a forwarding address to receive it; that the landlord must return it, minus deductions for damages, within 30 days of the tenant's departure; that if part is kept the landlord must give an itemized list of deductions with a description of the damages; and that the landlord may not charge for normal wear and tear.

   Sources 7 · Renter's Rights, 'Recovering Your Deposit': 'By law, landlords cannot refuse to return the deposit without a valid reason'; 'you must give the landlord a forwarding address in order to receive your returned security deposit'; 'less any amount deducted for damages'; 'within 30 days of your departure'; 'they must give you an itemized list of deductions with a description of the damages'; 'The landlord may not charge you for normal wear and tear' · Checked October 17, 2026

10. California's tenant guide recommends a written rental agreement; says the landlord must give the tenant a signed copy within 15 days; that a tenancy of more than one year must be in writing; that the name, address and phone number of the owner or the person who receives legal notices must be in the agreement or posted visibly in the building; and that for tenancies beginning on or after July 1, 2025, the landlord must take photos of the unit right before or at the start of the tenancy to accurately capture its condition.

    Sources 5 · California Tenants (2026 edition), 'Oral and Written Agreements', p. 24: 'it is strongly recommended that you have a written rental agreement with your landlord'; 'provide you with a signed copy of the rental agreement within 15 days of its execution'; 'A tenancy term of more than one year must be in writing'; p. 112: 'must be written in your rental agreement or posted conspicuously in the building'; p. 37: 'For tenancies that begin on or after July 1, 2025, the landlord is required to take photographs of the rental unit immediately before or at the beginning of the tenancy'; 'in order to accurately capture the condition of the unit' · Checked October 17, 2026

11. California's tenant guide explains that a lodger is someone who lives in a room in a house where the owner lives; that most lodgers have the same rights as tenants; that with a single lodger in the house, the owner can end the arrangement without formal eviction proceedings by giving written notice with the same period required to end any periodic tenancy; but that the lodger may dispute being a lodger, and then the owner would need to go to court.

    Sources 5 · California Tenants (2026 edition), 'Single lodger in a private residence', p. 6: 'A lodger is a person who lives in a room in a house where the owner lives'; 'Most lodgers have the same rights as tenants'; 'in the case of a single lodger in a house where there are no other lodgers'; 'the owner can evict the lodger without using formal eviction proceedings'; 'The amount of notice must be the same as required for any other periodic tenancy'; 'the lodger may dispute their status as a lodger' · Checked October 17, 2026

12. Under the federal lead-based paint rule, covered (target) housing is housing built before 1978, except housing for the elderly or people with disabilities and 0-bedroom dwellings, unless a child under 6 lives or is expected to live there; and rentals of individual rooms in residential dwellings count as 0-bedroom dwellings.

    Sources 8 · 40 CFR §745.103: 'Target housing means any housing constructed prior to 1978, except housing for the elderly or persons with disabilities or any 0-bedroom dwelling (unless any child who is less than 6 years of age resides or is expected to reside in such housing)'; '0-bedroom dwelling means any residential dwelling in which the living area is not separated from the sleeping area'; 'rentals of individual rooms in residential dwellings' · Checked October 17, 2026

13. Under the federal rule, before a tenant is bound by a lease for target housing, the landlord must give an EPA-approved lead hazard pamphlet, disclose any known lead-based paint or lead hazards, and provide any records or reports available about them.

    Sources 9 · 40 CFR §745.107(a)(1)–(4): 'before the purchaser or lessee is obligated under any contract to purchase or lease target housing'; 'The seller or lessor shall provide the purchaser or lessee with an EPA-approved lead hazard information pamphlet'; 'shall disclose to the purchaser or lessee the presence of any known lead-based paint and/or lead-based paint hazards'; 'any records or reports available to the seller or lessor pertaining to lead-based paint' · Checked October 17, 2026

14. The federal lead disclosure rule does not apply to short-term leases of 100 days or less that cannot be renewed or extended.

    Sources 10 · 40 CFR §745.101(c): 'Short-term leases of 100 days or less, where no lease renewal or extension can occur' · Checked October 17, 2026

15. According to IRS Publication 527, in most cases you must include in gross income all amounts you receive as rent, meaning any payment for the use or occupation of property; advance rent is included in the year you receive it; expenses your tenant pays for you are rental income; and if you receive property or services instead of money, you include their fair market value.

    Sources 11 · Publication 527, 'Rental Income': 'In most cases, you must include in your gross income all amounts you receive as rent'; 'Rental income is any payment you receive for the use or occupation of property'; 'Include advance rent in your rental income in the year you receive it'; 'If your tenant pays any of your expenses, those payments are rental income'; 'If you receive property or services as rent, instead of money, include the fair market value' · Checked October 17, 2026

16. According to Publication 527, you do not include a security deposit in income when you receive it if you plan to return it at the end of the lease; if you keep part or all of it because the tenant did not live up to the lease, you include what you keep in that year's income; and if a so-called security deposit is to be used as the final rent payment, it is advance rent included when you receive it.

    Sources 11 · Publication 527, 'Security deposits': 'Don’t include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease'; 'include the amount you keep in your income in that year'; 'If an amount called a security deposit is to be used as a final payment of rent, it is advance rent' · Checked October 17, 2026

17. The IRS explains that Schedule E (Form 1040) is generally used to report income and expenses from real estate rentals; that if you provide substantial services primarily for the tenant's convenience, Schedule C is used; that deductible expenses include depreciation and repairs that keep the property in good working condition without adding to its value; and that it offers an interactive tool to see whether your rental income is taxable and your expenses deductible.

    Sources 12 · Topic no. 414, Rental income and expenses: 'You can generally use Schedule E (Form 1040), Supplemental Income and Loss to report income and expenses related to real estate rentals'; 'If you provide substantial services that are primarily for your tenant's convenience, report your income and expenses on Schedule C'; 'Allowances for exhaustion, wear and tear (including obsolescence) of property'; 'Expenses to keep your property in good working condition but that don't add to the value of the property'; 'Is my residential rental income taxable and/or are my expenses deductible?' · Checked October 17, 2026

18. According to Publication 527, you can deduct your ordinary and necessary expenses for managing, conserving or maintaining rental property from the time you make it available for rent, and you should separate the costs of repairs and improvements and keep accurate records.

    Sources 11 · Publication 527: 'You can deduct your ordinary and necessary expenses for managing, conserving, or maintaining rental property from the time you make it available for rent'; 'Separate the costs of repairs and improvements, and keep accurate records' · Checked October 17, 2026

19. According to Publication 527, if you rent part of your property you must divide certain expenses between the rental part and the personal part, as if they were two properties; the two most common methods are the number of rooms or the square footage; expenses that belong only to the rental part, such as painting the room you rent or liability insurance for renting a room in your home, are fully rental expenses; and a common case is the duplex where you live in one unit and rent the other.

    Sources 11 · Publication 527, 'Renting Part of Property': 'you must divide certain expenses between the part of the property used for rental purposes and the part of the property used for personal purposes'; 'The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home'; 'pay premiums for liability insurance in connection with renting a room in your home, your entire cost is a rental expense'; 'A common situation is the duplex where you live in one unit and rent out the other' · Checked October 17, 2026

20. According to Publication 527, if you rent property you also use as your home for less than 15 days in the year, you do not include that rent in income; if you rent it 15 days or more, you include all the rent and divide expenses between rental and personal use.

    Sources 11 · Publication 527: 'If you rent property that you also use as your home and you rent it less than 15 days during the tax year, don’t include the rent you receive in your income'; 'If you use a dwelling unit as a home and rent it 15 days or more during the year, include all your rental income in your income' · Checked October 17, 2026

21. According to Publication 527, it counts as your personal use when the home is used by a family member (spouse, siblings, parents, grandparents, children, grandchildren), unless it is their main home and they pay a fair rental price, or by anyone paying less than a fair rental price; a fair rental price is generally what someone unrelated to you would pay, and it is not fair if it is substantially less than rents for similar properties in your area.

    Sources 11 · Publication 527, 'Dwelling Unit Used as a Home': 'A member of your family or a member of the family of any other person who owns an interest in it, unless the family member uses the dwelling unit as their main home and pays a fair rental price'; 'Family includes only your spouse, siblings, half siblings, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.)'; 'Anyone at less than a fair rental price'; 'A fair rental price for your property is generally the amount of rent that a person who isn’t related to you would be willing to pay'; 'if it is substantially less than the rents charged for other properties that are similar to your property in your area' · Checked October 17, 2026

22. The Texas Department of Insurance warns that homeowners insurance probably won't cover the costs if someone gets hurt or causes damage when you rent your home or rooms to short-term visitors; that most homeowners insurance won't cover damage to a rental property or might limit what it pays; that you should ask your insurer whether to add coverage; that landlord insurance gives added protection and is mainly for traditional long-term leases; and that you should ask whether to add it to your homeowner policy or get a separate one. For questions, it lists 800-252-3439.

    Sources 13 · Renting out your home? Check your insurance: 'homeowners insurance probably won’t cover the costs if someone else gets hurt or causes damage on your property'; 'Most homeowners insurance won’t cover damage to a rental property, or it might limit what it pays for'; 'Ask your insurance company if you should add coverage for paying guests'; 'Landlord insurance can give you added protection. Landlord insurance is mainly for traditional, long-term leases, and may not be appropriate for short-term rentals'; 'Ask your agent or insurance company if it makes sense to add it to a homeowner policy or get a separate one'; 'Questions? Call us at 800-252-3439' · Checked October 17, 2026

23. The Texas Department of Insurance explains that renters insurance won't pay to fix the house or building, because the owner's policy does that; and that personal liability coverage pays medical bills, lost wages and other costs for people you are legally responsible for injuring.

    Sources 14 · Homeowners insurance guide: 'Renters insurance won’t pay to fix the house or apartment building. The building owner’s policy does that.'; 'Personal liability coverage pays medical bills, lost wages, and other costs for people that you’re legally responsible for injuring' · Checked October 17, 2026

24. California's tenant guide says renter's insurance protects the tenant's personal property and liability; that it usually protects only the policyholder, so a roommate needs a separate policy; and that many landlords require tenants to carry renter's insurance, specifically liability coverage, and set the minimum terms.

    Sources 5 · California Tenants (2026 edition), 'Renter's Insurance', p. 38: 'Renter’s insurance protects the tenant’s personal property from losses caused by fire or theft'; 'Renter’s insurance usually only protects the policyholder'; 'Many landlords will require a tenant to have renter’s insurance, specifically liability coverage, and will set the minimum terms of coverage' · Checked October 17, 2026

25. The California Department of Insurance says the landlord does not provide insurance for a tenant's personal property, recommends comparing prices, service and coverage, and offers its hotline and guides at 800-927-4357.

    Sources 15 · Residential Property Insurance Guide: 'Your landlord does not provide insurance for your personal property'; 'Take the time to shop around for homeowners insurance. Compare prices, service, and coverage'; 'You can call the CDI Hotline'; '800-927-4357' · Checked October 17, 2026