renting out spare room - what to consider

Rambosmum

There is always the chance that you could end up with an axe-wielding maniac, but in the 5 we've had, we haven't come across one yet.

Are you going to be renting the room or will they have access to common areas as they please? Ours can, but generally don't, but we are a couple which might put them off.

The TV licence covers their room if there isn't a lock on the door (one you lock or open with a key, a bathroom type lock is fine).

Worst we've had is a smelly lodger, but she lost her deposit as I had to replace the curtains, repaint and hire a carpet cleaner to get the smell out, she only lived with us 4 months.

We googled a lodger agreement and amended it to suit. We made sure there was a 'fair usage policy' on the utilities as they were included in the rent.

We didn't inform our lender though I did call them and ask if we got a lodger would we need to, and they said no.

Our lodger does smoke, but he does not smoke in the house (I have a very good sense of smell and I would know) and we made it very clear in the agreement that suspicion of smoking would result in forfeit of the deposit, and as lodger deposits don't need to be in a scheme that is legal.

We have a notice period of 1 month to be given before the rent is due but with a clause that we can evict with 24hours notice if required and left it pretty open ended as to why such as suspicion of criminal activity, breaking of the lodger agreement etc. In reality it would have had to have been abuse or stealing for us to use it, and in the 4 years we've been doing it we never have.

moneyistooshorttomention

TranceNRG wrote: »

So did anyone actually inform their lender????

errrr...nope.

I didn't regard it as any of their business. In fact I reckoned they should be glad I was doing so because it meant I had more income available to pay the mortgage.

lee111s

TranceNRG wrote: »

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.

I never informed me lender officially, although when applying for the mortgage it was a kind of a nudge and a wink from the MA of the lender who said it doesn't really matter.

I did take out insurance with a lodger though.

iainscomputer

moneyistooshorttomention wrote: »

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).

Everyone has mobiles these days, I haven't even used my own landline in years!

G_M

Rambosmum wrote: »

.......
Our lodger does smoke, but he does not smoke in the house (I have a very good sense of smell and I would know) and we made it very clear in the agreement that suspicion of smoking would result in forfeit of the deposit, and as lodger deposits don't need to be in a scheme that is legal.

.......

Some sensible comments Rambosmum, but I have to take issue with this!

The legality of deductions/forfeiture of the deposit is not affected by scheme registration. What I suspect you mean is: "suspicion of smoking would result in an appropriate charge on the deposit, and as lodger deposits don't need to be in a scheme that is easier to accomplish. "

You would still need to justify the cost (ie cost of dry-cleaning curtains whatever), and the lodger could still dispute the deduction if they felt it was unfair, via the courts if you could not mutually agree.

circulartriangle

Wow, so many replies, thanks everyone! Incidentally, I just spoke to my lender who said they wouldn't need to know/give permission if I had a lodger, only if I was renting out the whole flat - basically what people had suggested here.

Soundgirlrocks - I liked your houserules! I had been thinking it would be enough to ask someone just to be considerate but I suppose one person's idea of considerate isn't necessarily another's...

circulartriangle

So, it seems I was getting ahead of myself a bit - have spoken to the property management company and apparently having a lodger is against the terms of the leasehold (although renting out the whole flat isn't...!). How annoying!! Another point to consider if anyone else is in the same position...

gazter

circulartriangle wrote: »

So, it seems I was getting ahead of myself a bit - have spoken to the property management company and apparently having a lodger is against the terms of the leasehold (although renting out the whole flat isn't...!). How annoying!! Another point to consider if anyone else is in the same position...

Dont take their word for it. Check your lease. They might not want you to, but that isnt the same as you not being allowed.

Paste the part of your lease that says its forbidden and lets see.

lee111s

I wouldn't have said a word. Who are they to say you can't have someone live in YOUR home?

What if you get a partner who moved in with you and they help towards bills? Would they say they couldn't move in? Essentially the same cirucumstances of having a lodger. IMO, it's none of their business and I'd get a lodger in.

They'll never know and I very much doubt there's anything they can do about it.

circulartriangle

I just asked hypothetically if I'd need to ask their permission. I did wonder how they'd know if I did rent out a room, but it's possible a neighbour might report it...

It says under the covenant:
Not to underlet or part with or share possession of any part of the Flat (as distinct from the whole) or any part of the Parking Space in any way whatsoever.