'Boommates' Are Catching On

Not a month goes by in which my wife and I don't look to Linda Wiens for inspiration. She's not only been a good neighbor across the way for more than 20 years, she also owns the same house style as ours. About 16 years ago, she converted her basement into an apartment. It helps her to pay her property taxes and maintenance costs with the bonus of having two housemates.

Despite perusing multiple retirement relocation locales from Minnesota to Florida, my wife and I do not want to leave our beloved community and yearn to stay in our home of 25 years. When we look across the street at Linda's set-up, it sparks more than inspiration. It triggers some rethinking of our planning going forward. Home sharing increasingly seems like a reasonable option.

As home prices rise and property taxes and insurance bills soar, it's become ever more difficult to age in place. As a result, home sharing and renting to "boommates" — roommates of the baby boom generation — has grown in popularity. While there's no reliable estimate of how many Americans are eschewing relocation for staying in their homes, the housing market has created a tipping point for those who choose not to cash out their home equity for a new domicile.

Initially spurred by the generous idea to offer affordable housing to community farmworkers, Wiens, single and 82, said she simply wanted to "have my house used in a better way — it was too much room for one person."

Wiens has had one or two women boarders at a time over the last 15 years: One housemate, who works for a nonprofit, now lives upstairs; the other, a massage therapist, lives in the basement. Her upstairs boarder, who shares the kitchen, has agreed to do some kitchen and bathroom cleaning. Both women pay rent on the first of the month, which is needed income for Wiens, a retiree who received a heart transplant in 2009.

There are a bevy of factors fueling the rise — and need — for home shares. In the past, empty nesters typically sold their big suburban or city homes to downsize to smaller quarters, usually in the SunBelt. Yet with home prices hitting a record high across the board for the second month in row in June, even retirement-friendly housing can be pricey. That has created incentives for both retirees who want to stay in their homes and domicile seekers who need affordable places to rent.

The growing U.S. housing affordability gap makes home sharing a viable option for millions. According to Front Porch, a housing nonprofit, the average income for a homeowner looking to share a home with another roommate is just slightly over $46,000, while the income of an average housing seeker is around $40,000," making it an ideal situation for Boomers to rent the room in their house," reports Changing America.

Nick Stuller, CEO of the financial services company BenFi in Middlebury, Connecticut, sees the growing appeal of boommates. Although not facing imminent retirement, he and his wife know people who share their homes.

"One older gentleman we knew had a large home and started to rent it out," Stuller says. "His renter didn't make a lot of money, but for him it's good, stable income. And when he had some health issues, she was there to call an ambulance."

Stuller says one safeguard is essential for home sharers: "You need to do background checks on prospective renters. You need to know who's on your property." There are many services that can check criminal and credit histories.

One keystone of home sharing is a written agreement detailing what is expected of the renter. When Wiens pondered this document, she came up with a minimal set of guidelines. If her boarders were to be the last to return to her home after 10 p.m., for example, they would need to call or text her, lock up and turn off the lights. Kitchen sharers were expected to clean and put away dishes and utensils.

"You can make as many rules as you need," Wiens suggests, "but they should be up-front, clear, fair, agreed-upon and work for how you want to best live with a stranger. If your boarder runs afoul of your guidelines, you need to be able to face that up with them, make the options clear and follow through."

What do you do when a boarder breaks or refuses to abide by the rules? You have to be firm. When Wiens took in two formerly homeless renters a few years ago, one tenant wasn't calling when she came home after 10 p.m., which was one of the rules in her signed agreement.

"There were other issues, too," Wiens adds. Although she initially felt she was doing the right thing, she realized that taking on unhoused women was a bad idea for her. They had too many problems that Wiens was unable to deal with over time.

Of course, before you consider home sharing, you'll need to assess what you need to do to your home to make it rentable. Do you need a separate entrance? Will renters share kitchens and bathrooms? If not, what do you need to install and how much will it cost? Will they share cleaning duties?

Before you call contractors, though, ask your local homeowners' association, municipality or county if local zoning and building rules permit renting out home space.

One fundamental decision in the boommate process is asking yourself (and your partner/spouse) whether your goal is purely income driven or you want to share your space for other reasons. Maybe your area is unattainably expensive for homebuyers or renters, or you just want to offer boarding for local college students or essential workers.

It's important to know why you want to share your home before you set ground rules. You may recall Polonius's advice to his son in Hamlet ("to thine own self be true"). Wiens boils this maxim down to asking yourself these questions:

• Why are you renting out space? To help someone? To make better use of your space? To earn money? Other? If it's to help someone, don't get upset if other expectations are not met.

• What are your habits, particularly ones that you would not want to see upset? Based on what you are and aren't willing to live with, "you have to establish criteria on what you will and won't tolerate," she says. "How will you live together?"

Besides the additional income and potential companionship of a compatible roommate, there's another unseen benefit of home sharing. You can reduce your carbon footprint by staying put because there is no need for moving trucks or out-of-state flights. Just home sweet home — provided that your guests are a good fit and the relationship doesn't sour.