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In today's economy, almost everybody is either going through or knows someone who has had a home foreclosed on them. The time to buy a home is now as the market reaches the bottom and many people have turned to renting out their current home to cover mortgage expenses, while downgrading the size and cost of the home they live in. This makes sense and is a great way for a family to save money while also maintaining ownership of a residence that they have been paying on for years.

Homes that were bought during the housing boom were often purchased by people who really weren't prepared to take on a home loan. Additionally, interest rates were very high in order to make people with questionable credit eligible to purchase a home. Luckily, these homes can often be rented out at a monthly fee that will cover the mortgage on that home. People who have not lost their homes yet can get an affordable home with a low interest rate while still owning a home with an upside down mortgage. Often times people refinance to help make it easier to pay off that mortgage.

Although this is an economically smart idea, renting out your home to a stranger comes with a liability. Finding a suitable tenant for your home can be frustrating. Background checks are now available via the internet and can paint a good picture of an individual's personal history based on criminal records, residential records, marital history and more. You can use a person's name or their Social Security number (required on a rental application) to obtain accurate results to help you make an informed decision on who you may be renting to.