Thinking of having a lodger

Chrisca50

I'm in the position of nearly having enough for a deposit for a house. When I buy it I'm thinking of letting one of the rooms to a good friend. Do you have to have to have any legal documents drawn up if you're having a lodger. Also is there a maximum rent that they would have to pay without having to inform the tax man? Thanks

SailorSam

http://www.direct.gov.uk/en/moneytaxandbenefits/taxes/taxonpropertyandrentalincome/dg_4017804

Chrisca50

Thank you SailorSam - just what I needed :T

BitterAndTwisted

This very, very hard about having a friend as a lodger. Boundaries can become fuzzy much easier than with someone you don't know well.

Also, I believe that the LandlordZone forum has a lodger's agreement template which you don't absolutely need but it might get you thinking about what you need to reach agreement on between you, just so things are very clear from the start.

G_M

LODGERS (Licencees)
A lodger (broadly) lives in the same property with their resident landlord, and shares facilities. Unlike tenants, lodgers have few rights.

The Housing Act 1988 provides definitions of 'Resident Landlord' and 'same property'.

There is advice for landlords considering taking in lodgers here:

LodgerLandlord (General information site)

Landlordzone (General advice on taking in lodgers)

Renting out rooms in your home (Government info)

Rent a Room Scheme (Government scheme for tax-free income from lodgers)

lvm

I would agree with B&T about having a friend as a lodger...think about if you couldn't live with him/her any more and had to tell them to leave. Would be a bit easier if you weren't on as friendly terms.

But...have to say that taking in lodgers was the best thing I ever did and can't believe I left it so long!

Chrisca50

Thanks G_M for all the useful websites - am sure I will find plenty of tips there