Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    MSE Lawrence
    Take in a lodger... official MoneySavingExpert.com discussion
    • #1
    • 16th Oct 07, 6:02 PM
    Take in a lodger... official MoneySavingExpert.com discussion 16th Oct 07 at 6:02 PM
    This is a special discussion as part of the guide to


    The ‘rent a room’ scheme means you can take in a lodger to live in a furnished room in your home, and it has a special exemption meaning you won’t have to pay tax on the first 4,250 you make each year.

    This is a huge tax break for most people and really ups the gain. Better still, as a landlord you’ll be expected to ask for a deposit and a month in advance, which means ready cash comes in quickly.

    How much? You can take home 4, 250 without paying a penny in tax; if you've a desirable property and don't mind paying income tax on anything above this, you could easily add another 1,000.

    Find out more: Read the Govt info on rent a room.

    The "Take a Lodger" Great Hunt

    I want to tap MoneySavers for their tips on finding the perfect lodger, dealing with deposits and being a good landlord. Where should you advertise? What do you need to provide, eg, duvets, food etc?


    Please feel free to add your comments, suggestions or questions

    Just click reply

    This Forum Tip was included in MoneySavingExpert's weekly email

    Don't miss out on new deals, loopholes, and vouchers

    Last edited by MSE Andrea; 15-03-2011 at 3:53 PM.
Page 1
  • Murrell
    • #2
    • 17th Oct 07, 1:57 PM
    • #2
    • 17th Oct 07, 1:57 PM
    Please note that most insurance companies won't touch you if you have a lodger and will exclude the lodgers room from the insurance.

    Thanks
    Sandra
    Last edited by MSE Lawrence; 08-12-2008 at 3:10 PM.
  • sec79
    • #3
    • 18th Oct 07, 1:15 PM
    • #3
    • 18th Oct 07, 1:15 PM
    I have rented out my spare room to lodgers, and yes some companies won't isure you, but quite a few will. You charge the lodger a bond to cover any breakages etc. Their stuff is not covered but they can always take out insurance fir their items. You are not covered for accidental damage, that is the only downside.

    I let the insurance company know when I have a lodger, the premium does not change.

    I'm with Norwich Union, and have been with other insurance firms whilst having a lodger.
  • Bogof_Babe
    • #4
    • 19th Oct 07, 4:13 PM
    • #4
    • 19th Oct 07, 4:13 PM
    If someone takes in a student for example, under the rent-a-room scheme, I believe you can only charge up to something like 84 a week without incurring tax liability.

    Two questions: (1) Could you have two students, if you had two rooms, for 42 each, or is the scheme restricted to one lodger only? (2) If you feed them, are you allowed to charge extra for that?

    I'm not thinking of doing it myself at the moment, but if ever I was left on my own it is something I might consider.
    I haven't bogged off yet, and I ain't no babe


    • Browntoa
    • By Browntoa 19th Oct 07, 8:04 PM
    • 28,564 Posts
    • 32,213 Thanks
    Browntoa
    • #5
    • 19th Oct 07, 8:04 PM
    • #5
    • 19th Oct 07, 8:04 PM
    as many people as you like up to the tax threshold
    I'm the Board Guide of the Referrers ,Telephones, Pensions and Discount Code boards which means I'm a volunteer to help them run smoothly and I can move and merge posts there. However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.


  • jessicamb
    • #6
    • 19th Oct 07, 8:17 PM
    • #6
    • 19th Oct 07, 8:17 PM
    I think the feeding part might be taxable income on any profits made
    The early bird gets the worm but the second mouse gets the cheese
  • Bogof_Babe
    • #7
    • 19th Oct 07, 8:19 PM
    • #7
    • 19th Oct 07, 8:19 PM
    I think the feeding part might be taxable income on any profits made
    Originally posted by jessicamb
    Makes me wonder how on earth they could prove it though :confused: .
    I haven't bogged off yet, and I ain't no babe


    • Browntoa
    • By Browntoa 19th Oct 07, 8:28 PM
    • 28,564 Posts
    • 32,213 Thanks
    Browntoa
    • #8
    • 19th Oct 07, 8:28 PM
    • #8
    • 19th Oct 07, 8:28 PM
    I wonder if they trawl the electoral roll ?? or council tax returns

    I've got one lodger but does not take me near the limit

    I'm sure the tax free part excludes bills etc
    I'm the Board Guide of the Referrers ,Telephones, Pensions and Discount Code boards which means I'm a volunteer to help them run smoothly and I can move and merge posts there. However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.


  • Bogof_Babe
    • #9
    • 19th Oct 07, 8:31 PM
    • #9
    • 19th Oct 07, 8:31 PM
    That's a point. If you are living alone you get 25% Council Tax discount, which you would lose on taking a lodger. That would eat well into any profit.
    I haven't bogged off yet, and I ain't no babe


    • Browntoa
    • By Browntoa 19th Oct 07, 8:34 PM
    • 28,564 Posts
    • 32,213 Thanks
    Browntoa
    I charge that as a seperate amount, but only charge them the 25% each year so i don't lose out, if you had 2 lodgers then split it between them ??

    I charge phone calls, gas , electricity as seperate from "rent"

    they cook/buy their own food, I have the space so they also have their own lounge/bathroom so they are not in my face all the time
    Last edited by Browntoa; 19-10-2007 at 8:37 PM.
    I'm the Board Guide of the Referrers ,Telephones, Pensions and Discount Code boards which means I'm a volunteer to help them run smoothly and I can move and merge posts there. However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.


  • blowingbubbles
    I'm a lodger, the relationship with my landlord is very much no questions asked, I pay him I stay in the room. I don't say nothing to noone nor does he. According to the council I'm still at my old address (I have contacts ) and thats how it will stay while I'm here.

    One piece of advice is make the rent all inclusive as if I was offered a room with all separate bills I would run a mile considering I could find a room tomorrow if I liked. (again more contacts) Just take a deposit before moving in.
    From my experience let the lodger buy his/her own food, give them a cupboard, shelve or 2 in the fridge and a shelve in the freezer and lay down the rules straight away to avoid tension at a later date.

    Also bar students most lodgers will have troubled lives from my experience but normally nice enough people.


  • Pjcity
    Good bit of info regarding lodgers is that they don't have any protection to remain in the property they are regarded as licence holders NOT Tenants.... If you want them to leave you get them out very easily..... DON'T GIVE THEM A TENANCY otherwise they do have greater security of tenure which could take a lot longer to evict them......

    For further info see Shelter.com
  • Youngy
    Does the rent chargeable up to 4250 have to be inclusive of bills?

    ie, can you charge the maximum and then add bills on top? Are most lodger agreements inclusive or exclusive of bills? If exclusive is it fair to split all down the middle? Just looking for views, thanks
  • kevintiobraid
    Re the insurance, I had no problem. Rang up Norwich Union and told them I had a lodger. All they wanted to know was whether she had a criminal record, thats all. No extra premium to pay.
    I charged monthly rent all inclusive. The easiest way to do it, but potential for abuse (think electric heaters or geeks with tons of electric equipment).

    Re the tax free amount you can declare....beware, I've heard that if and when you sell your house, if you have declared lodger income, you may be liable for capital gains tax on the profit you make from the sale, regardless of whether you've gone over the threshold or not.
  • Leo267
    When I lodged as a student (some years ago now I admit) most landlords/ladies included breakfast in with the rent. I can't remember the reason I was given at the time... I think it was something to do with laws regarding eviction or tax. Does anyone remember what that was about and if it still applies? My lovely landlady said we (she took in three male students) could eat all the breakfast cereal we wanted... I don't think she could believe it when we ate a giant box of Weetabix between us every day!!!! We had Weetabix for every meal!
    • seven-day-weekend
    • By seven-day-weekend 24th Oct 07, 12:51 AM
    • 24,889 Posts
    • 44,804 Thanks
    seven-day-weekend
    We've had lodgers on and off throughout 36 years of marriage and now our son has them.

    As regards the person who says you can 'only' charge £84 pw, our son's lodgers are charged nowhere near that much and their rent is all inclusive (apart from food and telephone). They are lodgers, not tenants, you can't charge them as much as a tenant.

    One pays £15 more than the other as he has a much bigger room and a Freeview box. They share kitchen and bathroom with my son, sometimes the lounge (but that is up to the individual landlord).

    We've always found it a good way to make a bit of extra money and have never had any problems with insurance.

    We've remained good friends with several of our ex-lodgers and I am even Godmother to the daughter of the two who married each other!
    Last edited by seven-day-weekend; 24-10-2007 at 12:54 AM.
    I am a Job Club Coach in Association with CAP
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
  • Pandora123
    Here is info on a bit of a different spin on lodgers... those which stay Monday to Friday only.

    Rise of the midweek renters

    Last edited by Pandora123; 31-10-2007 at 5:42 PM.
    I want to move to theory. Everything works in theory.
  • Beate
    That's a point. If you are living alone you get 25% Council Tax discount, which you would lose on taking a lodger. That would eat well into any profit.
    Originally posted by Bogof_Babe
    Yes but students do not have to pay council tax so if you took a student as a lodger, your share of the council tax would fall to 50%, or am I mistaken?
    Reclaimed thanks to this site:
    175 Abbey Mortgage Repayment Fee, 170.03 Capital One Bank Charges 418.07 Lloyds TSB Bank Charges, 2,671.55 Mis-sold Endowment Policy, all for OH

    Member No. 1 of the "100 free films in 2012" FMUK club! Seen 131
    Member No. 1 of the "100 free films in 2013" FMUK club! Seen 69 so far
  • Hardup Hester
    I pay full council tax as I live with my hubby, so taking in a lodger doesn't affect my council tax. We've had a few lodgers over the last few years & most have been ok, though we have also had a few nutters, lol.
    Our lodger has their own bathroom & bedroom & we all share the kitchen, or they can eat with us, my current lodger is such a fussy eater she now sorts her own food out.
    When I'm next looking for a lodger I'm going to try for a Monday to Friday one first, though I'm not sure how much call there is in Reading. I have a wireless router so will offer the room with wireless access.
    I would prefer to have my house to myself at the weekends as I find I can't relax with blaring music, screeching phonecalls & having my pc taken over.
    I have a set of groundrules for the lodgers, but the current one has trouble remembering them.

    Never let success go to your head, never let failure go to your heart.
  • Keldin
    Here is info on a bit of a different spin on lodgers... those which stay Monday to Friday only.

    Rise of the midweek renters
    Originally posted by Pandora123
    It is fairly common for IT contractors (and I imagine other contractors as well) to take short term contracts away from home and stay over during the week.
    I normally look for a cheap but decent B&B that will do a reduced rate for booking 4 nights at a time but a weekday lodging would work as well especially if some of your luggage can be left over the weekend.

    K
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

146Posts Today

2,526Users online

Martin's Twitter