OK, this may not be everybody’s cup of tea, but renting out a spare room can generate a lot of needed income. By letting out one of your rooms you could be generating yourself about £600 a month!
Taking on a Lodger
So if you want to rent out one of your rooms, here is a quick guide on taking on a lodger for the first time:
Starting with the basics:
What Is a Lodger?
A Lodger is someone who rents out one of your rooms of your house, but they do not have any exclusive rights to any of your property. However, you can give lodgers additional services such as meals, cleaning and laundry which can be included in the agreement but is not compulsory.
Who Can Take in a Lodger?
Most council tenants and home owners should be able to rent a room out for lodgers. There are however, a few things that you need to take into account before taking on a Lodger. You may need to ask permission from your local authority if you are a council tenant. If you have a mortgage on your property, you may need to have permission from the mortgage company. In both cases you would need to contact your insurance provider.
Benefit Claimants: if you are claiming benefits you may lose some of the benefits – so it is always best to check this out first.
What Do I Need to Provide?
In its simplest form you would need to provide a furnished bedroom, also the use of facilities and some communal areas. As mentioned before additional things such as cleaning and meals can also be included.
How Much Can I Charge?
This really does depend on where you live and the type of property that you have. A good place to check is www.sparerooms.co.uk , this will give you a good idea of how much to charge.
Can I Evict a Lodger?
If you don’t like the Lodger, all you need your spare room back, then it is easier to evict a Lodger than it is a tenant of a property. You will though, have to give “reasonable notice” if you intend to evict the Lodger. It is always best to have a written agreement between you and be Lodger(s).
Recommended reading so that you know all the ins and outs of the Debt Process
How to Find a Lodger?
On-line flat sharing has now made it easier than ever before to find a new Lodger. Once again such sites as the one mentioned above will be able to advertise your room to prospective lodgers.
Will I Pay Tax Were Having a Lodger?
The government has a “Rent a room” scheme, where you can earn up to £4250 tax-free for taking in a lodger. Providing you do not burn more than this you do not have to declare it.
So if you do have a spare room, you could be earning some greatly needed additional funds. For further information why not check out www.sparerooms.co.uk