Renting a room out

Trollydolly_2

Just bought my first house and thinking of renting a room out.

Any tips or info i need to know before i go ahead and do it?

I would be asking approx £200 - £250 a month, is this too much for a bog standard house?? 2 bed ex council???

Do i have to pay tax on that??

Do they pay extra for bills or do i include that in the price (just not the telephone??)

HELP!!!!

Trow

How much you charge will depend on what you are including (electricity, council tax etc?) and where you live, the area you are in etc. Try looking in local papers to see what typical rents are in your area.

As for tax, you would qualify for 'rent a room relief' as long as your takings were under £4250 per year. This means that you would have no tax to pay.

HTH

Ted_Hutchinson

Rent a room scheme

Trollydolly_2

Thanks for that guys Thats really really helpful!!!

Yey!

I think it would be a good idea for me to rent a room too because it would mean extra security for my house while im working funny shifts, so i will definatly do it now!

TD xx

Iona_Penny

I can recommend this as a way to bring in extra income - for us it was a way to put extra money towards the cc debt and help get debt free. Not quite there yet but allowed us to remortgage to begin to chip away at the shortfall in our endowments with a little more security to make payments.
My only caution would be choose wisely; for a time we had students who came from language or air-training schools so felt we had a backup.
Our new guy is more long term and came through a friend and with references from his employer-charge upfront on a 2 weekly or monthly basis(dependant on how often they are paid) qnd agree at start what is and isn't included. I let on a one off charge to include electric and laundry. I have found it is easier to relax and become more generous rather than the other way round. GOOD LUCK!