Renting a basement apartment or spare room appears to be a simple way to earn a little extra cash.

Download a standard lease from the Internet, put a rental ad in the paper, and you're in business, right?

“There's more to being a landlord than simply collecting the monthly rent check,” says Richard Roll, president of American Homeowners Association. “Before you rent your home, be sure to understand your responsibilities and minimize your financial risks.”

First, check with your local zoning office to make sure your property can be rented. Some localities prohibit subletting by homeowners.

Be sure to thoroughly inspect the property prior to the tenant's arrival. Of course, you're responsible for making sure the faucet doesn't leak, the refrigerator is running, and that the air conditioning or heating is working.

But you also need to document the condition of the apartment and furnishings, in case of any damage by your tenant. Take photographs or a video of the apartment and all property covered by the rental agreement. Then do a walk-through with the tenant and inspect the property together.

Make sure that the lease contains a damage provision, for other than ordinary wear and tear, and a damage deposit.

Well ahead of entering into a lease, review your homeowners insurance. Some things to consider adding to your coverage:

If your rental property is furnished and still has some of your stuff, add personal property coverage.

Liability coverage will insure you against claims for loss or injury by your tenant.

Loss of income provision will cover you for lost rent, in case your property has to stand vacant.

Heighten your safety awareness and follow precautions. Check the smoke detectors every six months and maintain a record of each time you replace the batteries.

For information on any aspect of buying, owning or selling a home, go to http://www.ahahome.com , the web site for American Homeowners Association. Please credit American Homeowners Association as source when using this material. If you do NOT wish to receive the “AHA Home Tips” click reply and type REMOVE in the subject field of your e-mail.