Renting rooms out - advice guides??

cameron99999

Hi all,

I am in the process of buying a 3 bedroom flat which i will be living in. However i plan to rent out the other two rooms and am looking for advice on regulations paying tax etc.

Is there any useful "all in one" guides online that could guide me on the process so that i dont miss any legal requirements etc?

Any advice tips would be gratefully received.

Thanks
Cameron

Mojisola

This gives advice to both sides, including a sample agreement -
http://england.shelter.org.uk/get_advice/sharing_and_subletting/lodgers

simplymegreg

Why give a lodger exclusive occupation of a room and thereby exclude yourself from a part of your own house which you live in? I wouldn't use this agreement.

xylophone

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

HappyMJ

simplymegreg wrote: »

Why give a lodger exclusive occupation of a room and thereby exclude yourself from a part of your own house which you live in? I wouldn't use this agreement.

It also has a clause saying no less than 28 days notice which gives a lodger more rights than they need.

A lodger does not require any notice at all. If you don't want the lodger any more due to behaviour/cleanliness or any other issue you could give them "reasonable" notice which could be a day...or even a few hours in the case of a criminal offence being committed by the lodger.

Personally I'd collect rent weekly for the upcoming week and if they can't pay that is considered immediate notice and they should leave ASAP. In reality on failure to pay I'd do a condition check of the room and if there is no reason to deduct anything from the deposit I'd give them a week to make up the arrears and if they don't they can leave and I'll keep the deposit for that last week of rent.

ryanandsue

Beware of any lodgers called Carla!

Yorkie1

Have you checked that the lease of the flat allows you to rent out rooms?

Have you checked whether letting out 2 rooms to separate individuals will constitute an HMO in your area and thus need licensing in some way?

G_M

I've never heard of a lease that prohibited lodgers.

LODGERS (Licencees/Excluded Occupiers)
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' (S31 & Schedule 1 (10).

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)

21 tips (Tessa Shepperson's Lodger Landlord website)

Mojisola

Yorkie1 wrote: »

Have you checked whether letting out 2 rooms to separate individuals will constitute an HMO in your area and thus need licensing in some way?

I don't think a property is counted as as HMO if the owner is living in the house - isn't it only if you are renting out a property and living elsewhere?

kinger101

Mojisola wrote: »

I don't think a property is counted as as HMO if the owner is living in the house - isn't it only if you are renting out a property and living elsewhere?

You're allowed two non-family lodgers before you're classed as an HMO. So it won't be a problem letting two rooms to single people. But renting a one room to a couple, and the other to a single, could be.

http://www.spareroom.co.uk/content/info-landlords/will-taking-in-a-lodger-turn-my-home-into-an-hmo

Though I'd certainly advise against renting to couples to avoid balance-of-power problems.

G_M

HMO and lodgers

The new classification will apply to live in landlords who take in more than 2 unrelated lodgers. If more than 2 unrelated lodgers live with a landlord then the landlord may have to apply for planning permission
For more detailed information on these changes (including a great downloadable in-depth guide) visit the Resident Landlords Association page- (the downloadable guide is at the bottom of the page).

ain't google wonderful???

http://www.hmo.org.uk/do-i-have-an-hmo.html