on ESA & affected by bedroom tax - trying to work out how to manage renting a room

povertytrap

hi, I'm on ESA (WRAG) and currently am in a two bedroomed flat and as my son has gone to uni and will be moving out of halls of residence in the future, I will be deemed to have a spare bedroom.

I'm trying to work out all the hoops to go through in order to cover my costs with renting a room.

Already it seems I would be no better off, as I would lose single persons council tax benefit - which would be approximately £88 per month - and I can only keep the first £20 of rent each week which is £86.66 per month.

Also, if I rented out the room I would have to pay extra for home insurance and for wear and tear & furnishings, so at this point I would be worse off. Is there any way I can recoup the cost of these?

As far as charging for other bills - electricity (i have no gas) and water meter costs and phone - I wondered how it would be best to arrange a charge for these?

At the moment my electricity is averages out at £61 per month but I am extremely careful with it - I'm currently looking into here on the boards what the best option would be to provide heat for the spare bedroom, given that there is currently a convector heater there and am thinking about buying an oil filled radiator.

But how would I charge for it? I'm having trouble getting my head round how to work out the cost of a person's electricity useage and am worried about getting landed with a big bill I can't afford.

My water costs are billed approximately quarterly through the Housing Association I rent with and work out to be currently about £20 per month.

Am I being too picky in how I'm working this out and is there an easier way?? Can I just charge them for bills based on half my current outgoings?

I realise that this is a rental question, but because of the restrictions on me placed because I'm on benefits I posted it here in the hope that other people might have some experience or knowledge of the best way to go about things. Thanks for reading.

paddedjohn

Why not try and find a 1 bed property?

povertytrap

paddedjohn wrote: »

Why not try and find a 1 bed property?

I've looked into it, and the rent isn't that much difference for having two beds (although I wouldn't get my housing benefit reduced), but basically my flat is in an ideal location (very close to town and shops but very quiet) and has its own outside space. If I move, I wouldnt get any outside space because I've checked what's available - and the flats that I've looked at so far have needed work on them.

At the moment I can step outside my door and walk 5 minutes to a supermarket open till 10pm which is very handy. On top of this there's a remote chance my son might come back in the future - although its too early to say.

When universal credit comes in, in the future, I might be better off because I believe they disregard the income from the room when they make their calculations. (Hope i've got that right). Also, if/when I take on some kind of work when my health improves I might also then be better off living on a part-time wage and renting the room.

I've been thinking about it a great deal and just wanted to see how this could work. But if its really stressful and not financially viable then it might not be the best option.

pmlindyloo

Does your son return home regularly?

The rules are that if he returns home within 52 weeks and intends to return home after university then you are allowed an allocated bedroom and should not be subject to any HB reduction.

See here:
http://www.nelincs.gov.uk/resident/benefits/am-i-entitled-to-housing-benefit-or-council-tax-benefit-/housing-benefit-under-occupancy-frequently-asked-q/#mychildisawayatuniversity

povertytrap

I believe the rules are changing and I spoke to a worker from the council and its been confirmed by my landlord that once he moves out of halls of residence they will consider his main address to be the shared house that he rents with other students and I will definitely not be elegible for housing benefit for his room.

Sorry, I'm a bit pressed at the moment and don't have a link to verify this, but I'm sure that this is the case.

Dunroamin

Regarding the bills, you could either charge a lodger a rent inclusive of all bills or you could do what most flat sharers do and charge an exclusive rent and then split utility bills 50/50 as they arise.

povertytrap

Dunroamin wrote: »

Regarding the bills, you could either charge a lodger a rent inclusive of all bills or you could do what most flat sharers do and charge an exclusive rent and then split utility bills 50/50 as they arise.

If I split the utility bills, would I need to show proof each month to the lodger of the bills that I receive? (sorry if this is a silly question) - its just that for water I only get billed quarterly and can't get a bill printed out monthly - I would only be able to work it out based on averages and I can't request a meter reading because its done through my social housing landlord. Also for electric I've gone for a direct debit scheme where they bill me online because its cheaper and they average out the bill based on last year's readings.

Also, could I split the internet bill, phone bill & tv licence, & council tax with them, or would that be considered my responsibility to pay?

Dunroamin

I've only shared properties where the bills were split as they came in. With the situation you describe, I think it would probably be better to go down the inclusive route, which many people would prefer anyway.

butler_helen

We went all inclusive and had a tough time with £150+ bills monthly for gas/electric. However, it was a very cold winter and we weren't reliant on the rent for anything other than keeping b&q in business buying paint!

However, when we researched the lodger market, bills included in rent was the norm. With a few exceptions of course. You could always take a deposit for bills from the start - based on previous months and return what wasn't use when they leave? We have also done that previously.

povertytrap

Thanks for your replies. What I'm having trouble getting my head round is that the government won't let me keep anything over twenty pounds, so if i set the rent above that for the lodger will they allow me to offset bills and if they would, which ones? It seems if they wouldn't that they're making it impossibly hard to do this.

pmlindyloo

I do not want to labour the point but all my reading tells me that if your son intends to return home, is not away longer than 52 weeks and is not receiving HB at his university place then you are entitled to a room for him.

The legislation is here:

http://www.legislation.gov.uk/uksi/2006/213/regulation/7/made

I am willing to be proved wrong but as far as I am aware this has not changed although I believe it may be reduced to 6 months under Universal Credits.

Of course I do not know if your son is near enough to return home on a fairly regular basis and I do not know if he intends to return home at the end of university but I would be inclined to challenge the information that you have been given.

The other point is that you would not be able to 'let' his room while he was away.

It is also on Shelter's website. Perhaps a call to them may clarify things as I may have 'missed' something.