Real-life MMD: Should I go without for the sake of my live-in tenant?

dimbo61

First of all she is NOT A TENANT she is your Lodger as you live in the property.
If she is unemployed she can claim benefits and is allowed Housing benefit or Local housing allowance so look at the shelter website for each council

http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/housing_benefit_if_you_are

You are allowed upto £4250 tax free if renting a room
If the Lodger has no job she needs to get down to the Job centre and apply for benefits NOW

AliBaliBee_2

Treat others as you would be treated yourself! Imagine what you would feel like if you lost your job and were in her circumstances lodging somewhere. What would YOU expect to happen?

Find out more about benefits. See what impact officially registering her at your address would have, for just now while she's claiming and also for later as she will be employed again.

If it was me that lost my job and we knew each other well, i would hope that you would let me stay while looking for a job for a defined period of time. I would be claiming benefits and that would include housing benefit for giving to you. If there was a reason that i couldnt (eg you would have your benefits cut if they found out you had a lodger) then you would have been gaining from me/the state for the duration of my stay with you to date, so all the more reason that you should let me stay for a while. You dont get something for nothing these days.

However, if we didnt know each other that well and this was a financial only arrangement then i think the fair thing to do would be as someone else suggested, if you're paid rent in advance then when that runs out thats that. But if you couldnt afford to pay her back her deposit then how can you kick her out, so you may have to let her stay until the month or whatever that amount would cover is up also.

Work out all your options, write them down, and give proper consideration. Meanwhile start selling stuff to supplement your income, follow all the money saving tips to cut your costs and start making home made vegetable soup which costs buttons and is really filling with a couple of slices of bread. !!

zannaht

We have a friend living with us paying rent and claiming housing benefit no problem.
She needs to apply and go from there. They just asked us for a letter confirming what she was paying. They only pay £65 per week though.
Tax wise for you it comes under the rent a room scheme, so isn't taxed unless you are charging over £85ish a week.

Fujiko

AliBaliBee wrote: »

Treat others as you would be treated yourself! Imagine what you would feel like if you lost your job and were in her circumstances lodging somewhere. What would YOU expect to happen?

Find out more about benefits. See what impact officially registering her at your address would have, for just now while she's claiming and also for later as she will be employed again.

If it was me that lost my job and we knew each other well, i would hope that you would let me stay while looking for a job for a defined period of time. I would be claiming benefits and that would include housing benefit for giving to you. If there was a reason that i couldnt (eg you would have your benefits cut if they found out you had a lodger) then you would have been gaining from me/the state for the duration of my stay with you to date, so all the more reason that you should let me stay for a while. You dont get something for nothing these days.

However, if we didnt know each other that well and this was a financial only arrangement then i think the fair thing to do would be as someone else suggested, if you're paid rent in advance then when that runs out thats that. But if you couldnt afford to pay her back her deposit then how can you kick her out, so you may have to let her stay until the month or whatever that amount would cover is up also.

Work out all your options, write them down, and give proper consideration. Meanwhile start selling stuff to supplement your income, follow all the money saving tips to cut your costs and start making home made vegetable soup which costs buttons and is really filling with a couple of slices of bread. !!

I have read and re-read this post but still cannot decide if you are being serious! An unofficial (whatever that means) lodger suddenly finds herself out of work and wants you to help her out by foregoing some of the rental income on which you say you rely. Doesn't this woman have any savings or any family to help her?

As to the suggestion that you, the landlord, should have to start selling your possessions and living on vegetable soup because your income has been reduced through no fault of your own - well, you really must be joking.

If you really feel you would like to help your tenant, make it clear that it will be for a specified time only, say one month and after that she will have to leave. I'm not sure whether she would be entitled to housing benefit since this seems to be an unofficial arrangement, but it is worth a try.

LimeLight

I've recently arrived into the same position as the op's lodger.
I rang my landlord and she lowered the rent as far as she could but made sure she could still pay the mortgage and said it will go up again when I sort out my income.

TBagpuss

If she is a lodger then she should be able to claim housing benefit - you will need to provide a letter confirming that she is your lodger and what the rent is.

If you are considering asking her to leave, how long will it take you to find another lodger? You'll be without the rent money until you do, so you may be better off financially letting her stay at least short term.

What i would do is sit down with her and come to an agreement - for instance
- She must apply for HB immediately (assuming she is eligable) to pay (as much of) the rent as possible, as soon as she can
- She must continue to pay her share of the bills etc so you are not subsidising her day to day living costs
-You will review the situation after a month.
- If she cannot find work and pay the full rent within an agreed time, she agrees that she will cooperate so you can find a new lodger (i.e. make her room available for viewings, keep it tidy and clean etc)

Also think about what you could realistically afford without getting into finacial difficultoes yourself, and be honest with her - that way , she can see you are tryiong to help her but can;t, rather than seeing you as just being unwilling to help.

As others have said, if she is a good lodger and someone you can live with, it's worth keeping her if you can, as you may find any replacement is less congenial, or that you cannot find another lodger straight away.

Also, if you do agree to temporarily reduce the rent, make sure you keep a clear record signed by both of you showing that you have not reduced the rent but have rather agreed to wait for the arrears.

goldtop

I hope by unofficial tenant it does not mean that you have not been declaring to the council that you don't live alone and therefore should not have been entitled to the 25% discount. Because if she is the only lodger there then under the rent a room scheme you would have had no income tax to pay. I can see no other obvious reason why it would be unofficial.

I would suggest she signs on and sees if at the same time she can claim some sort of housing benefit. On the presumption you took a deposit off her at the beginning suggest that this covers her for the next month and that hopefully she will be sorted by then.

zzzLazyDaisy

rob_s0 wrote: »

Absolutely not. If you try and evict your tenant and they've been living there without any contract (and therefore you're unlikely to have been declaring the income), they have the upper hand as they can shop you to the authorities for it.

Sorry but this is nonsense.

The person is NOT a tenant, but a lodger. OP can have a lodger quite legally, without declaring income, under the rent-a-room scheme which has a tax free limit of £4250 per annum. There is no requirement to provide a contract to a lodger, who is a bare licensee and can be asked to leave at any time.

Personally, if this is a business arrangement to provide you with additional necessary funds over and above your normal income, then I would ask her to leave.

Assuming she is in receipt of JSA and that you are declaring her for council tax purposes (ie you are not unlawfully claiming the single person's discount) then she may be eligible for LHA at the room in a shared house rate - which won't be megabucks but will help towards the lost rent (she will need a lodger contract to claim) and you should also get her to sign an agreement that she will reimburse you for any shortfall not covered by the LHA as soon as she obtains paid employment (though that won't necessarily stop her from doing a moonlight)

If she is a friend first and a lodger second, then you may take a different view of the situation.

sazaccount

I think you should speak to the Lodger first. Sit down and go though the finances first. They may not know that the rent is relied on. Find out what is realistic for them to pay. which may for you be slightly less than normal but is a fair amount for them to pay.
As others have stated what about housing and other benefits that can be obtained for unemployment?
However I would make it very clear how long this arrangement could go on for eg 2/3 months then if nothing has changed in the circumstances. Then they would have to move out.

Mishomeister

gloriouslyhappy wrote: »

If you trust her enough to share your house with her, then sounds like you should try to work with her during this time when she needs your help. But, it would be smart to put things on an official footing, get things in writing, for both your sakes, and maybe she could claim housing benefit which would be paid to you so your own finances would be easier. Under the 'rent-a-room ' scheme, you can earn a fair amount (currently £4,250) before you'd owe any taxes.

But, really, get things in writing soon! Saves so many hassles down the line, for both your sakes!

Paying tax is not the only reason to have an unofficial lodger. You need a consent to lodge from the bank and you m1ay not want your bank to know you have a lodger.