How much to charge lodgers gf?

klizw

Jowo, I know what your saying but they wouldn't want to rent a scabby 1 bed flat, if they were moving out they would want somewhere nice which would obviously cost them more. The other thing was that we were considering letting out the other room but wouldn't want that many people in the house so won't do that if she moves in so we would lose money that way.

bristol_pilot

As the gf is moving in in 'a few weeks' I suggest you have the 'money conversation' asap as there may be widely differing expectations on both sides (if the posts on this thread are anything to go by).

In my area decent flats cost typically £250k to buy and can be rented for £550pcm. Faced with potentially paying £600pcm as a lodger, I think most people would go for their own place even if the total outlay was a bit more.

PasturesNew

klizw wrote: »

PasturesNew - I know the bills wont go up by a great deal but surely she should still pay a quarter of the bills and council tax? So it should be added up and divided by 4 as there will be 4 living here in total? then add on whatever we decide for rent?

If you do it that way, then yes. I was just looking at how much it'd cost you extra for another bod.... assuming that the lodger's bills were all inc.

On that basis I'd say then: half what the lodger's rent is + 1/4 of the bills.

klizw

I know, I have just been putting it off because my husband is away and I want him to do it haha, I'll speak to him in the next couple of days about it

PasturesNew

klizw wrote: »

Jowo, I know what your saying but they wouldn't want to rent a scabby 1 bed flat, if they were moving out they would want somewhere nice which would obviously cost them more. The other thing was that we were considering letting out the other room but wouldn't want that many people in the house so won't do that if she moves in so we would lose money that way.

Watch out for the new HMO regulations that came in in April. As the home owner, beyond two lodgers you might need a license. Check your local rules so you're not acting illegally.

For many now it's:
- more than 2 unrelated people in one house = license
- owner + more than 2 lodgers in one house = license

But if you were keeping it to her/him, then you would be losing the potential higher income of another person in the other bedroom at full rate.

klizw

Pastures new - I think that would actually make it more than the £250, rent would be £175, plus £50 council tax, £25 G&E = £250 and then we have phone, insurances etc. I just keep thinking its too much though but my husband thinks thats fair, easy for him when I'm the one that has to have the discussion about it!!

bigbigmamamoo

there is also the tax issue to consider, under the rent a room scheme, the amount you charge now is non-taxable, if you up it you will have to pay tax on it

spugzbunny

klizw wrote: »

Jowo, I know what your saying but they wouldn't want to rent a scabby 1 bed flat, if they were moving out they would want somewhere nice which would obviously cost them more. The other thing was that we were considering letting out the other room but wouldn't want that many people in the house so won't do that if she moves in so we would lose money that way.

I'm a bit confused! If lodger is paying say 1/3 of council tax at £120 so £40. If another person moves in that become 4 people at £120 so £30 each. His contribution should reduce but overall it will go up together? Is that what you mean?

If I were you I'd sit down and do a decent calculation. you want to make sure you are not worse off or ripping them off. Do you know what the cost of bills (Gas & Elec I assume) went up by when he moved in? That would be a good basis for the additional cost of bills for her. Then re-calculate cost of bills that will not change across 4 people.

That saying, I think a reasonable and quick calculation would be .. He pays £300 in rent? I pay roughly £100 for bills in a shared house so on that basis I would say he is £200 rent, £100 bills. On that basis I think she should pay half the rent and the same bills less a bit due to reductions in shared cost such as council tax as above. £475 sounds reasonable to me.

BitterAndTwisted

I have a horrible feeling that the picture in the minds of lodger and g/f is that they will be sharing the current rent of £350 a month with perhaps a token additional payment to reflect the extra hot water for baths and showers plus the extra laundry. Are they aware that you have been considering renting out that third room to another lodger and perhaps being able to charge an additional £350a month?

Horrible situation to be in considering your lodger is also a friend.

spugzbunny

Does he pay £50 council tax becasue that is 1/3 of £150 a month?