How much to charge lodgers gf?

BitterAndTwisted

I think what your actual costs are are irrelevant. What is pertinent is what their costs would be to rent somewhere else together which is of an equivalent standard.

What I think would be fair is to charge in the region of an additional 50% on top of the £350 the lodger is paying now. Once they've split the £525 between them it comes out to a very reasonable £262 a month each. That should cover any additional costs and compensate you for having another person in the house. To be honest, two couples sharing the same property can be rather problematic.

bristol_pilot

Just to clarify the tax situation...under the rent-a-room scheme the first £4,250 of the TOTAL PAYMENT per year is tax-free. You cannot get around this limit by declaring some of it rent and some of it bills.

klizw

yeah that makes sense, I think I'm underestimating rather than overestimating though, I'm calculating G&E at only £100 where its more like £150 and I think council tax works out a bit more than £200 too. I think that the rate we are charging our lodger at the moment is more than reasonable for our house and I think that is making it more difficult

spugzbunny

BitterAndTwisted wrote: »

I think what your actual costs are are irrelevant. What is pertinent is what their costs would be to rent somewhere else together which is of an equivalent standard.

What I think would be fair is to charge in the region of an additional 50% on top of the £350 the lodger is paying now. Once they've split the £525 between them it comes out to a very reasonable £262 a month each. That should cover any additional costs and compensate you for having another person in the house. To be honest, two couples sharing the same property can be rather problematic.

Yes I agree with this. That covers your costs plus compensates for having the other person. It's not far off what you OH wants either. I think £600 would see them off tbh!

Either way it looks like you will be into tax issues. Probably best to talk to your OH again before you say anything.

klizw

bristol pilot, I think £600 pm is reasonable for 2 people to share a room here with all bills included, I think we have been undercharging up until now though as I had wanted to charge more initially but hubby overruled, now he wants to charge more! cant win! I'll look more into the tax situation but if thats the case I can just get my lodger to put some of the bills into his name and work it out that way.

spugzbunny

it's interesting though because I always thought lodging would be a lot cheaper than renting in a shared house because you don't really get a 'home' yu get a room and someone elses home.

have you looked into the cost other lodgers pay? I'm sure if you wait around here long enough you'll find out.

Anyone a lodger?

just to say - for example OH and I pay around £775 for 2 bedrooms in a 3 bedroom house (rent and bills). On top of those 3 bedrooms we have a 4th single which is anyones spare for visitors to stay in.

bristol_pilot

klizw wrote: »

I can just get my lodger to put some of the bills into his name and work it out that way.

This is fraud.

klizw

the Direct Gov website has information about tax and says that bills, insurances, building repairs etc are allowable expenses

klizw

Also interest on my mortgage. That wouldn't be fraud if he is using the electricity and gas and lives in the home, he doenst need to be the home owner to pay the bills!

klizw

Spugzbunny, he very much has a home here, he doesn't just have his room, he has the run of the house as much as myself and my husband do