renting out spare room - what to consider

circulartriangle

This is just an idea I'm thinking over and would be really grateful for any input/issues I've not thought of.
I own a 2-bed flat with a mortgage and am struggling financially. I live alone and have done for 3 years so it would take a bit of getting used to having someone else here, but on the other hand sometimes I feel I'd welcome the company! I work from home using this bedroom as my office so if I got a lodger, obviously I would have to work either in the living room or my own bedroom or possibly see if my parents would let me use their spare room as an office.

I realise I would have to pay the full council tax (although presumably only for the number of months I had a lodger, e.g. I could change back to having a single person's discount after a few months if I was by myself again?).

Has anyone else been in a similar situation with any experiences they could share with me?

thanks for reading!

Cisco001

Check if your mortgage lender allow lodger
Check if your insurance company allow lodger.
Gas certificate if you has gas appliance in house.
Draft Lodger agreement
Draft house rule

lee111s

I rent a room out and it's great. You get a good amount of money for essentially nothing. Yes you pay a little more council tax and utilities may go up (probably not even £10 a month) but you have that bit of company.


If you're willing to live with someone else it's a good way to up your income. If you're struggling financially, then really, it's a little sacrifice that it well worth making.


I don't "need" the money from a lodger however, having an extra ~£300 a month allows me to have a couple of nice cars as oppose to one, and 2-3 holidays per year. A sacrifice well worth making!

RAS

Hi

You may be able to find a Monday - Friday lodger? That gives you some privacy at weekends.

Alternatively if you are prepared to limit your incoem to the Rent a Room Allowance, you mght only do it for some months a year so you do not have to pay tax on it. That's a bit more complex on the Single Person's Allowance.

Someone I knew did it on an irregula basis, providing a room for visiting companies at the local theatre. You need to be a bit more tolerant with this; they can come in buzzing at midnight after a perfomance but it is only for a few weeks at a time.

circulartriangle

Thanks so much for your replies, everyone, great food for thought! People with experience of letting out a room, have you drawn up an agreement yourself or is it sensible to get a solicitor to draw something up?

If anyone else has any thoughts or experiences, please do weigh in, I'm still at the mulling-it-over stage!

TranceNRG

lee111s wrote: »

I rent a room out and it's great. You get a good amount of money for essentially nothing. Yes you pay a little more council tax and utilities may go up (probably not even £10 a month) but you have that bit of company.


If you're willing to live with someone else it's a good way to up your income. If you're struggling financially, then really, it's a little sacrifice that it well worth making.


I don't "need" the money from a lodger however, having an extra ~£300 a month allows me to have a couple of nice cars as oppose to one, and 2-3 holidays per year. A sacrifice well worth making!

I'm in the process of buying a flat in London and thinking of getting a lodger/flatmate to help with the mortgage/bills.

I asked my MA whether I had to inform the lender and he said he couldn't advise on that as the lender might not agree to it (lodger might get squatters rights, If I was't able to keep up with repayments and property got repossessed). I think what he was saying is that if I keep it quiet, then there shouldn't be a problem

Did you inform your lender? Insurance company?

Cheers.

RAS

Bear in mind that a lodger as few if any rights; you can ask them to leave giving reasonable notice. Shelter suggest that if they pay weekly, or monthly that is the period of suggested notice but unless you write that into a lodger agreement, you can actualy give a few hours notice if things go pear-shaped. Some posters on here have done just that and got rid when necessary.

What you need to think about the issue about how you want to live.

What are you relaxed about and what bugs you?

How are you about friends coming, for the evening or overnight?

That is really personal stuff. Write what you would really want and then check back if it is reasonable?

TranceNRG

As someone who has lived in shared accommodation for over 10 years, I think it's absolutely fine as long as you have good flatmates. Make sure you interview a few and pick someone who's a professional, considerate and that you think you will get along with.

circulartriangle

Good points! I'm not overly obsessed with tidyness but I know I would get annoyed if someone left the bathroom in a mess or didn't wash up their dishes etc so I'd need to think about putting that kind of thing in a list of house rules I guess!

Cisco001

circulartriangle wrote: »

Thanks so much for your replies, everyone, great food for thought! People with experience of letting out a room, have you drawn up an agreement yourself or is it sensible to get a solicitor to draw something up?

If anyone else has any thoughts or experiences, please do weigh in, I'm still at the mulling-it-over stage!

There are a few lodger agreement sample on web. Google it & edit to suit yours.

moneyistooshorttomention

The very first thing that came to my mind was that, if you are a non-smoker, it might be as well to buy a packet of cigarettes and an ashtray and offer one to prospective tenants when you interview them.

Voice of experience time - as I always used to state on my advert that they must be a non-smoker. However, that didn't stop several smokers applying for the room and then subsequently smoking in my house and they continued to do so (even when I reminded them they had replied to a "non smokers" advert).

Offering them a cigarette and seeing the reaction would have been an easier way to deal with that. If they accepted, then I wouldn't have taken them on. I would have avoided those smokers "sneaking in" as lodgers under a "false banner" iyswim.