question on letting rooms to lodgers

want2bmortgage3

The reason why is I know them all and they are all entitled to the room in a shared house allowance, while they are looking for work. I am happy to share my residence and they are looking for somewhere in my area to stay. They currently share a house on the other side of town but the landlord is useless and not getting jobs done. It would be good for me as extra income, job is not as safe anymore.

SternMusik

want2bmortgage3 wrote: »

I see my figures were a bit extortionate there, and that lodging is a lot different to a tenancy! So if I was to ask say £400 for the double room between 2 people. Then £250 for the lounge room would that be more acceptable? Then I would deal with all the bills myself.

This certainly sounds a lot more sensible. Since they are your mates, why don't you ask all three if they'd be comfortable with the arrangement? I believe the couple will be entitled to the one bedroom LHA rate, so you will have to check if they can afford £400.

Note that you can earn up to £4250 per year tax free from lodgers (and that includes everything, i.e. the money they pay for bills etc). You have to complete a tax return if you get more than that in a tax year.

marathonic

What are they paying in their current place? Have you mentioned a cost of £400 for the double room?

The reason I ask is that expectations can vary widely - it wouldn't surprise me if your friend is on another forum asking questions about a double room he expects to rent from his friend for about £250 per month.

It's one thing if he has complaints about his landlord not fixing problems in a reasonable timescale. It's another having to live without a lounge at all. Perhaps, when push comes to shove, he's happy to have to wait a week for a new washing machine every few years if it means he can relax in the lounge with a beer every Friday night.

If it were me, I'd consider renting the double room for £4250 per year, using up the entire tax free allowance from lodgers and forget about the lounge rental idea. This plan would imply renting for £350 per month. This would be a more sustainable plan as the lodger is more likely to stay longer-term.

NinaSwiss

want2bmortgage3 wrote: »

I see my figures were a bit extortionate there, and that lodging is a lot different to a tenancy! So if I was to ask say £400 for the double room between 2 people. Then £250 for the lounge room would that be more acceptable? Then I would deal with all the bills myself.

You need to do some research to determine what the market rate in your area is for:

1 single/double bedroom occupied by 1 person (with no living room and inclusive or exclusive of bills)
1 single/double bedroom occupied by 2 people (with no living room and inclusive or exclusive of bills)

You can use spareroom website for this. Also bear in mind that some advertised rooms might have extra features (i.e ensuite, living room) so would ask for more money.