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Lodgers & letting a room - how is it done?
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Should the deposit be protected at all? If not, how would the lodger feel about this?
No. It doesnt need to be protected. Remember, you have all the power in the situation. You are the landlord, they are living in your house. If they arent happy with the agreement they can try elsewhere, who also wont be protecting the deposit either.0 -
If you have a BTL property you are renting out, can you use the rent a room scheme on your residential property ?Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0
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Thank you! Where could I find template contracts for lodgers please?
I know it's probably a matter of a personal choice, but I will ask anyway. I have a choice of renting out a room to lodgers and staying in the same flat, or renting out the whole place to tenants and finding a smaller place to rent for myself. I think both options lead to comparable financial benefit - save for the tax treatment.
Which one would you prefer and why?
It depends how much you'd prefer to live alone as letting the whole place and renting elsewhere is the riskier of the two options. Reasons include the fact you can't move back when you feel like as both you and your tenants will have initial fixed terms and notice amounts to give, plus if your tenant doesn't want to go you may have to evict through the courts. Your home won't be your home any more as you'll be giving someone else exclusive occupation. You'll need permission from your mortgage lender or to change to a btl mortgage, plus you'll need to tell your buildings insurer. If your tenant doesn't pay rent for a while you'll need to have enough money to cover your mortgage and rent. You'll need to declare the income to the HMRC and probably complete a self assessment form each year.Don't listen to me, I'm no expert!0 -
actually the correct figure is (was) £4,250Tax implications are the first £4,200 tax free. You dont need to notify hmrc if you are going to be under that threshold.
but as from 6 April 2016 the budget has increased the annual allowance to £7,500
https://www.gov.uk/government/publications/rent-a-room-relief-increase0 -
If you look at Spareroom.co.uk you can find a lodger and all the information you require, including a contract you can download, lots of advice there.0
Regular savers earn 6% interest (HSBC, First Direct, M&S) 
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