Renting a room to an ex co-worker

yvonne13_2

Hi, I was wondering if anyone could give me some tips as I will be renting out my spare room in March.

A couple of days ago an ex co-worker rang me to say that he couldn't afford the rent on his flat no more so was going to have to give up Uni and move in with his sister in Scotland.

I live in (Didsbury) Manchester and this is also where he goes to Uni so out of the blue he asked me if he can rent my spare room so I said yes and I will get back to him with cost's ect.

Today he rings me up and tell's me he has handed in his notice to his LL and he would pay me £350 a month plus deposit :eek:

I was going to check with council tax and ask around to see how much I should charge as I am unsure, I didn't really want him telling me what he thinks he should pay and I really wished he had waited until I got back to him to confirm things.

I will have to go and buy a rent book and make sure I fully understand his right's and my rights as I don't want no funny business when it comes to him paying his rent.

How long should I give him to pay the rent? e.g rent is due on the 1st each month

BitterAndTwisted

He's jumped the gun a bit, hasn't he? Are you comfortable with having the decision made for you like that?

Be assured that lodgers have few rights and little security of tenure: if you want them to go if things don't work out then out they go. Granted, this might be difficult for you if they're a friend. Try to separate friendship from a relationship with a lodger.

Take a look on the landlordzone website for information about how to deal with a lodger in your home. There's no particular need for an actual lodger's agreement (note: NOT a tenancy agreement) but there is a need to be absolutely clear about when you expect the rent is paid, what housework is expected of them, what your rules are about overnight guests, whether there's a kitty for consumables, whether the rent includes utility bills or not and so on. There is no need for a rent-book and you can charge £4250 per annum under the HMRC's Rent-A-Room scheme before you have to declare the rent for taxation purposes.

Also take a look at the easyroommate and other similar sites to see what the average rent-levels are for a share in a similar property in your neighbourhood.

This ex-workmate and student has money problems, so don't let theirs become yours.

yvonne13_2

BitterAndTwisted wrote: »

He's jumped the gun a bit, hasn't he? Are you comfortable with having the decision made for you like that?

Be assured that lodgers have few rights and little security of tenure: if you want them to go if things don't work out then out they go. Granted, this might be difficult for you if they're a friend. Try to separate friendship from a relationship with a lodger.

Take a look on the landlordzone website for information about how to deal with a lodger in your home. There's no particular need for an actual lodger's agreement (note: NOT a tenancy agreement) but there is a need to be absolutely clear about when you expect the rent is paid, what housework is expected of them, what your rules are about overnight guests, whether there's a kitty for consumables, whether the rent includes utility bills or not and so on. There is no need for a rent-book and you can charge £4250 per annum under the HMRC's Rent-A-Room scheme before you have to declare the rent for taxation purposes.

Also take a look at the easyroommate and other similar sites to see what the average rent-levels are for a share in a similar property in your neighbourhood.

This ex-workmate and student has money problems, so don't let theirs become yours.

Thank you, the reason I wanted a rent book was because he told me he wanted to pay cash and to be honest I don't want us to fall out because he claims he gave me money and I have no proof that he didn't.

yvonne13_2

I have checked easyroommate and someone that also lives in the same area is me is charging £380 a month or £88 a week, so I will not be greedy and ask for more money and I will also tell him that his minimum stay should be 5 months then a month to month basis like the other person.

jc808

£354 a month

That will bring you under the taxaable threshold under the govt 'rent a room scheme'

BitterAndTwisted

It won't if there is "the other person", this student's rent could put the extra rent right into the taxable bracket. You can ask for a minimum stay of five months but you are not in a position to demand it. Don't forget that it might not suit you to have that sort of commitment when you don't know whether this person is going to drive you mad or not. The luxury of having a lodger is that you can ask them to go at any time and they can leave if the situation doesn't suit them either. There's just the issue of the deposit which you wouldn't get away with holding onto for not enough notice being given if they want to leave. You could be glad to see the back of them, who knows?.

silvercar

Is that inclusive of bills?

Average rent in a typical Manchester student house is £300 a month excluding bills.

Students are exempt from council tax and enable you to continue to claim the single person discount if you currently do so.

agrinnall

yvonne13 wrote: »

Thank you, the reason I wanted a rent book was because he told me he wanted to pay cash and to be honest I don't want us to fall out because he claims he gave me money and I have no proof that he didn't.

It's your property, don't let him dictate how the payment is made, if you want to have a record of payments insist that he pays by a traceable method (standing order is best). If he doesn't like it then don't go ahead with it, it's not like he's your best pal that you don't want to fall out with, is it?

duchy

As you've worked with them I guess you know you can get along alright.

If they do jump the gun a bit in general (like they did about your maybe been a yes) I'd definitely invite them around for a chat about how it's going to work -house rules that kind of stuff.

My basic rules were consideration -ie don't hog the bathroom when I need to get to work and don't upset the neighbours.

The only problems I had (apart from the guy who had a pot farm in his room) was one girl who was utterly oblivious of other people -went out one NYE leaving the music blasting (I was away) on repeat. My neighbour (who was getting up at 4 to go fishing) was treated to "The Only Way is Up" on replay from 8pm til he left the next morning. Needless to say I wasn't very popular !!

WhiteHorse

Get him to sign a simple Licence agreement.

yvonne13_2

BitterAndTwisted wrote: »

It won't if there is "the other person", this student's rent could put the extra rent right into the taxable bracket. You can ask for a minimum stay of five months but you are not in a position to demand it. Don't forget that it might not suit you to have that sort of commitment when you don't know whether this person is going to drive you mad or not. The luxury of having a lodger is that you can ask them to go at any time and they can leave if the situation doesn't suit them either. There's just the issue of the deposit which you wouldn't get away with holding onto for not enough notice being given if they want to leave. You could be glad to see the back of them, who knows?.

Your right I shall ask him to give me a weeks notice then.