Lodgers... Implications and Effects

spud4life1974

Hello all, I am currently out of work due to the recession and in a bid to keep the mortgage company happy I am thinking about taking in lodgers.

Can anyone tell me where I stand, what I need to do legally (telling the mortgage lender, local authority, etc) and how this will effect me?

Thanks!

BitterAndTwisted

Lodgers have no formal rights and can be asked to leave whenever you decide so I don't believe you are under any obligation to inform your lender. The only implication where the Local Authority are concerned is to notify them to cancel your 25% single-occupancy discount.

If you are receiving more than the annual maximum according to the Revenue's "Rent-A-Room" scheme you need to declare it as income and it will be taxable.

Jowo_2

The landlordzone website has good info on the rent a room scheme and advice on how to find a lodger, taxation and so on.

Owain_Moneysaver

You need a gas safety certificate.

You must tell your house insurers (buildings and contents).

In Scotland, if you take in more than two lodgers (unless they are a couple) you will have to register as a HMO with the local council.

G_M

Tell your insurer or you may invalidate your insurance.

Check tax here.

Have a 'lodger agreement' so both parties know the rules: are bills included? what about phone? access to whole property? cleaning/washing up etc: what do you expect? overnight guests yes or no? things like this can be taken for granted but can quickly sour a relationship.

Useful Q & A here.

At the end of the day though you can eject a lodger from your home easily.