Take in a lodger... official MoneySavingExpert.com discussion

Badger_Lady · 7 December 2008 at 11:02PM

With renting, I'm sure you'd have to discuss it with your landlord / letting agent. Some actively encourage or discourage sharers... some don't allow "subletting" (which is what your arrangement would normally class as). If they're on the tenancy, you'd probably be equally liable depending on your contract, which could make things tricky if you pay more or less than an equal portion of bills...

poisondwarf1 · 10 December 2008 at 9:51AM

Joyful wrote: »

I would suggest taking 6 weeks deposit from a Lodger. Mine gave me 4 weeks and after the first pyt did not have the next months. I gave him notice and used the deposit for the rent. The problem was I had nothing left to take off phone bills which I had asked him not to make! I had major probs with him- my first foray into taking a tenant. I have gone back to Foreign language students and after getting 1 from a school for 6 weeks I then got his friend for 10 weeks and now I am getting HIS friend. Looking like I am getting a reputation for talking a lot! LOL

Hi

I've had lodgers for years now and I put a lock on the phone as I had a massive problem with one once who was phoning Australia and New Zealand without my knowledge and had left by the time the bill came in! Grrr

harryhound · 10 December 2008 at 11:43AM

nikkie wrote: »

I have been both a lodger and a landlord so decided i'd have a go at maybe parting with some advice! hope this helps someone!
...
...
...

me. Remember- you can evict someone so if it's not working, don't fight it- end it! both yourselves and the tennant will be happier in the long run.

N xx.

Brilliant post nikkie,

Can I just add a couple of thoughts:

Call it an old fashioned system, but I got "lodgers" to sign post dated cheques. (If a direct debit bounces, you have to get involved in the if's and but's.
A cheque is a bill of exchange, a promise to pay, the lodger has to get involved in the if's and but's).

I use Firefox - it has a plug in spell checker that works on postings like this, 'cos my spelling always has been rubbish;)

Harry.

huggermugger · 10 December 2008 at 11:54AM

hedgewitch wrote: »

My prospective lodger has brought me a form from the council - mostly for her to fill in but a bit for me as well. One question on both parts puzzles me, it asks whether the lodger is related to the landlord and what the relationship is. Does anyone know why they need to know this, and what difference it makes? Can a lodger not be the landland's daughter, nephew, cousin or anything else? Will they not get housing benefit if they are lodging with a relative and paying rent?

Not sure what the exact rules are but I know that Housing Benefit try to exclude paying for close relatives this quote from the CAB website sums it up:

"In some situations, the local authority may treat you as if you are not responsible for paying the rent, even though you have to pay it and you will not get Housing Benefit. This will be the case if you have a rental agreement the local authority thinks is ‘non-commercial’, for example, because it is not legally enforceable.

You may be excluded from Housing Benefit by this rule if you pay rent to a close relative who lives in the home, or to a former partner for the home where you used to live together. It can apply if you pay rent to a company or trust that you have some connection with. It can also apply if you (or your partner) used to own the home and your ownership ended within the last five years.

The local authority may also apply this rule if they think the rental arrangement has been set up only to get Housing Benefit (this is called ‘taking advantage of the Housing Benefit scheme’). The local authority may say your arrangement ‘takes advantage’ if you are an adult living in someone else's household and you start to pay them rent."

harryhound · 10 December 2008 at 12:01PM

jeremy.felix6 wrote: »

I used to take in lodgers nearly 20 years ago and if I remember rightly the allowed earnings are the same now as they were today - why have they not risen to keep up with inflation? And what would they be now if they had? Should all you landlords be lobbying the government on this? Perhaps it would also take pressure off some of the ridiculous perceived 'need' to build some of those extra millions of dwellings?

If I remember correctly it was set up back in the days when M. Thatcher had 3,000,000 on the dole (before putting them on the permanent sick was used as a way of cooking the figures).
Now that the country is heading back into a worse mess, upping the "lodger" allowance would provide accommodation much cheaper than the local council can.
It will keep a significant number of mortgage payers in their homes.
The velocity of circulation of this cash will keep shops from going bust.
Now that the country has stopped building houses and importing fancy foreign stuff for renovations - extensions, across a widening balance of payments gap and a falling currency:- That is a Win, Win, Win, Win, situation suggestion, costing us tax payers very little.

Harry.

Feel free to add a few more Wins

Good for global warming, another Win:D

puddings_2 · 10 December 2008 at 12:59PM

I'm single in a 3 bed house and rent 2 of those rooms out to lodgers (and have done so for the past 18 years)
We share a bathroom kitchen and lounge.There are locks on the bedroom doors (though 2 out of the 3 of us dont use the locks)

I prefer an informal arrangement rather than signed agreements etc.

My insurance is with Norwich Union who are happy to accept up to 2 paying guests but exclude theft from the property if theres no proof of forced entry.

On average lodgers tend to stay for 2 or 3 years. I've only ever kicked out 2 people. I usually find friends of friends who are looking for somewhere to live. Otherwise I put an small advert in the local paper "property to let" and usually get dozens of phone calls so I can then be a bit picky.

Ideally look for people that will be out of the house a lot: (I had one chap rent a room and he was only here two or three days a month - the rest ofthe time he was at his girlfriends such easy money and no hassle!)

I know £ varies a lot because of location but I'm in Blackburn and charge £50 per week for a single room and £300 per month for the double room. I put the rent up every two years by 10%.
That includes everything - gas, electric, poll tax, internet the lot

I work from home so I'm usually around to keep an eye on things, so Ive never had a problem with people phoning Australia or anything like that.

Anybody thinking about renting out a room (so long as you dont have kids) DO IT!

yvonne101_2 · 10 December 2008 at 2:46PM

I would recommend that landlords always get references from the landlord previous to the current or most recent landlord as their references will be more accurate i.e., they will not have any interest in 'getting rid' of their current tenant.

MSE_Lawrence wrote: »

This is a special discussion as part of the guide to

Boosting Your Income

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 of 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 and then read other
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

[threadbanner]BOX[/threadbanner]

sdooley · 10 December 2008 at 3:30PM

I would recommend advertising in newsagent's windows over ads on the internet. Less timewasters as the people who see it are looking locally.

Errata · 10 December 2008 at 5:57PM

My niece in London lives in a one bedroom flat which she's buying. She's taken a lodger by turning both the sitting room and the bedroom into 'bedsits', she has one and the lodger has the other one.

bikerangel · 10 December 2008 at 10:38PM

I have taken in several lodgers over the last six years and found it very useful to save money for home improvement so would recommend it; but have some questions you should ask yourself if you are new to this:-

Are you a bit 'Kim and Aggie' on the cleaning front if so your lodger might not be. (I found one lodger emptying the loo brush holder in the drain in the street!!!! Another cleaned the kitchen floor with washing up liquid.)
As they will not be paying the bills directly, how will returning home to 'Blackpool Illuminations' make you feel? On the same line, what about if they want a bath every second night - if no else needs the bathroom of course.
How about if they eat their food with their mouth open - if this bugs you in a friend imagine living with the person and listening too them every night. Or slurping their tea/coffee.
Recycling ... are you saving the planet well they might not be, but make an effort for appearances, how would you feel having to check all the recycling.
Breakages, spillages...... of communal items, food or beverage spills - a good supply of cleaning products is essential.

This is just the tip of the iceburg, but I have found non accusing honesty and bluntness the way to resolve any issues or potential misunderstanding. But, don't let me put you off

.
So far have paid for a new Bathroom, Central Heating and have £6k saved for more, as well as replacing the car. :j

Take in a lodger... official MoneySavingExpert.com discussion

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free