renting out spare room - what to consider

moneyistooshorttomention

Another thought is re phonecalls. In this day and age its possible to have an all-inclusive tariff that covers all standard phonecalls up to an hour in length.

Now that would have been a blessing when I took lodgers in, rather than a coinbox phone to start with for them to make calls on and finding I experienced some theft from them using my personal phone. Itemised phonebills stopped that thankfully, and I kept a record of my phonecalls and that meant that all other phonecalls were obviously theirs then and I would give them a bill for whatever they had spent each month when the phonebill came in and invite them to check the itemised phonebill if they wished (ie so that they could see for themselves).

With one of these modern-day inclusive tariffs, then I'm guessing you can still get an itemised phonebill and follow the same "If its not mine - its theirs" practice, but at least you wouldn't have to make a note of many numbers at all called by you (as most would fall within that all-inclusive tariff).

duchy

I think you first need to decide if you are renting just the room or if there is an expectation they will be using the living room too.

A friend of mine works from home and has a lodger -she works in her bedroom as she feels it would be unreasonable to expect the lodger to tiptoe around whilst she is working. It works very well as there is mutual respect and consideration.

The best lodger I ever had was a nurse who had lived in shares before- as she worked shifts we both got some time in the flat alone and we weren't both fighting for the bathroom at the same time. The worst |I had was also a nurse who had never lived away from home before so was inconsiderate and selfish.

Soundgirlrocks

Ive been renting my spare room out for over a year now and the extra money comes in really handy, and its nice having someone else around. Ive taken the approach of keep it simple, bills inc. Ive got a lodgers agreement from the web and amended it to suite my needs. Interviewed a few and gone with people liked. Im on my third lodger now as the room is a pretty small single and a bit far out (Zone4) it appeals to people first moving to London as a bit of a launch pad place but that suites me. Ive don't have a list of house rules, just two, be nice to the dog & don't be a d**k, seems to work out if there is a specific issue I talk to them - current lodger kept putting the heating on, I politely ask her not to unless it had dropped below 18, but offered to get her a thicker duvet if she was cold at night (she wasn't she is just used to a warmer climate) It just had't occurred to her that it would have much affect on the bills. At the end of the day as the owner the power is with you, and most people are decent.

katejo

I have had lodgers for about 7-8 years. The longest stay has been 3 years. It is worthwhile. I will make the following points:

• You don't usually need to inform your mortgage lender. Mine only needed this for a tenancy.
• You do need to inform your insurer as some don't allow it. Ones which do include Aviva, Nationwide and Direct Line. There may be more
• re. council tax: You may find that you only get your discount back (after lodger moves) if you provide the new address of your departing lodger. My council refused to believe me.
• You won't lose your CT discount if you have a lodger who is paying council tax at their main address elsewhere or is a full time student with exemption. They will have to provide proof of this.
• If your lodger has their own TV in their room, they will NOT be covered by your licence if they watch live broadcast. I can provide you with the email from Capita which says this if you want. Lodgers are only exempt if they are family.

It is worth doing. I use my extra income for home improvements which I couldn't afford to do from my salary alone.

katejo

Soundgirlrocks wrote: »

Ive been renting my spare room out for over a year now and the extra money comes in really handy, and its nice having someone else around. Ive taken the approach of keep it simple, bills inc. Ive got a lodgers agreement from the web and amended it to suite my needs. Interviewed a few and gone with people liked. Im on my third lodger now as the room is a pretty small single and a bit far out (Zone4) it appeals to people first moving to London as a bit of a launch pad place but that suites me. Ive don't have a list of house rules, just two, be nice to the dog & don't be a d**k, seems to work out if there is a specific issue I talk to them - current lodger kept putting the heating on, I politely ask her not to unless it had dropped below 18, but offered to get her a thicker duvet if she was cold at night (she wasn't she is just used to a warmer climate) It just had't occurred to her that it would have much affect on the bills. At the end of the day as the owner the power is with you, and most people are decent.

I had one last spring who simply didn't believe in wearing a pullover indoors. He wanted to walk round in t shirt and shorts in all weather. He would put up the thermostat to 24 C which was unbearably hot for me. I got rid of him in May. When I mentioned increased bills, he made it clear that that was my problem not his. He paid me rent so he could then do what he wanted!

RAS

Which would be a good thing to clarify before renting out.

Either point out that bills are x and any excess will be added to the rent or deducted from the deposit or specify temperatures.

Ask for references from the LL before last and even the one before that.

My other thing would be to avoid anyone who has not "lived away from home" previously.

TranceNRG

So did anyone actually inform their lender????

G_M

I know of no mortgage lender who cares about lodgers. Tenants, yes. Lodgers, no.

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 (21 tips from solicitor Tessa Shepperson + General information site)

Landlordzone (Various articles on taking in lodgers)

Renting out rooms in your home (Government info)

Rent a Room Scheme (Government scheme for tax-free income from lodgers)

gazter

katejo wrote: »

• If your lodger has their own TV in their room, they will NOT be covered by your licence if they watch live broadcast. I can provide you with the email from Capita which says this if you want. Lodgers are only exempt if they are family.

.

We;ve had this conversation before, yes it will a tv license will cover a whole household.

Nowhere on this link does it say you need a tv license for a lodger, family or otherwise, and Capita are irrlevant.
http://www.tvlicensing.co.uk/check-if-you-need-one/for-your-home/tenants-and-lodgers-aud2

gazter

TranceNRG wrote: »

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.

Yes, by picky! My best lodger ever has just left after twelve months. He has been like part of the family. Couldn't have asked for a better guy.

Never be suckered in by hard luck stories.