Take in a lodger... official MoneySavingExpert.com discussion

HannahC

Any recomendations for insurance companies that are okay with lodgers? My current one is not, so if I find a lodger soon I will need to change provider.

Any suggestions welcome thanks.

carebear1976

harryhound wrote: »

Is it two postal addresses? No
Does it appear as two properties on the voters register? - No
Has the tenant bothered to register? Not sure, but would be at the same address in any case.
Are they both claiming single person Council Tax? No - "landlord" is married so paying full CT and is charging a rent inclusive of all bills.
Does it look like one property? Its on one plot (in the country with one driveway but there are two buildings).
Does it have more than one "front" door. Yes - one on each building.
Does the tenant or the neighbour have any reason to try and "shop" the landlord to
the tax man? Don't believe so, but they have mentioned that they were entitled to HB in their previous property (which was in a different council area), but don't think they can get it at this property (or at least don't want to push it in case they get the landlord in trouble). If they wanted to explore this further there is always the possibility the HMRC could find out, so would prefer to keep everything above board to prevent any problems.
How old is the landlord? 65. Does he qualify for the addition of age allowance to his personal allowance? Haven't heard of that before - but have just googled it and looks like his is as he's 65 - does that mean he has a personal allowance of £9k?
Just how much additional tax is at risk? Maybe not much if he gets the age-related allowance. As the property is in joint names with his wife (who is 63 but still working), I guess they would have to split the income down the middle and she would pay basic rate on her half though. Still, after deducting expenses like council tax, electricity, maintenance maybe that wouldn't be so bad either.

Thanks Harryhound - I've annotated above. Do you have any ideas on how to work out the expenses they could deduct (in terms of things like decorating, carpets, the new cooker they put in last month)? Really appreciate this!

carebear1976

Vickisaver wrote: »

Where do you think I should advertise my room, I'm not having much luck on the sites I've chosen so far!

Vicki

Not sure exactly where you are (I'm in the Glasgow area too), but are there any universities or hospitals around where you live - maybe you could advertise there?

Reiki_Sue

Hi

I have just spent about an hour wading through this lovely thread. I have a perfect lodger (i.e. pays his rent on time and who doesn't have any negative impact on me or my lifestyle) but unfortunately he has decided to move out.

I spotted a South African gentleman looking for a room and have made contact with him to view the room. This then reminded me of some articles i had read in the past about different nationalities and cultural differences between them. Obviously this is stereotyping nationalties but it did make interesting reading e.g. i understand that Japanese lodgers are generally quiet and reliable. The articles covered Americans, Asian, various European countries cultural ways of living/lifestyles, but nothing was mentioned about South African or Australian lodgers and i'm sure i have read things years ago. Any ideas where i can find such information?

Cheers
Reiki Sue x

harryhound

carebear1976 wrote: »

Thanks Harryhound - I've annotated above. Do you have any ideas on how to work out the expenses they could deduct (in terms of things like decorating, carpets, the new cooker they put in last month)? Really appreciate this!

Sorry for the delay, I missed your reply.
I think legally speaking, as there are two front doors that is not "rent a room"
so its a matter of conscience and a bit of a grey area..
It looks like you have managed to find this:
http://www.hmrc.gov.uk/incometax/personal-allow.htm
There is also a nasty poverty trap involved in the second column of the above table, where the additional allowance gets clawed back. Such pensioners find themselves paying the highest (marginal) tax rates in the kingdom. Presumably this would not be a problem.
I think the pension supplement is a means tested benefit, so could be at risk but I don't know being a young 62:D. Any body else know?
Capital purchases in preparation for the business activity of being a landlord do not qualify for tax relief but normal maintenance once the business is under way does.
It is a bit like running a car - the tax man will accept detailed accounts or 40 pence a mile; similarly the tax man will allow 10% of the rent as a flat rate for such expenses.

As the property is not totally self contained there could be issues about the tenant paying their share of the utilities etc. which would need to be agreed and perhaps handled on a cash basis.

credit_crunch_dad

Hi
We recently let a room to a couple of friends. Had a horrible experience - they shouted at my wife, insulted us. We are a little bit timid and not assertive. We gave them a nice room with brand new decorations. But they filled the whole kitchen and two refrigerators with food, were playing music loudly, paying rent late and asking us not to use the bathroom. We will be very grateful if you can suggest whether we should let a room or not. And how to manage difficult boarders. My wife has blood pressure and had some heart problem. We are both middle aged but timid. Will appreciate any help though this mail may be late for the thread. Many thanks for your advise

Andy_Hamilton

To be honest I would not rent a room to a couple! Having a lodger is give and take but living with 2 people (linked people) in your own home may be too much.
Stick to renting to a single person or to a monday-friday person, your much more likely that they will fit in with you.
Don't settle for the first person even if money is tight, find the person who you would be happy to share your home with.
As for rules, your in charge and you either have to be assertive or put up with poo. Talking is always a good start.

Head-Out-Of-Sand

bikerangel wrote: »

How about if they eat their food with their mouth open - if this bugs you in a friend imagine living with the person and listening too them every night. Or slurping their tea/coffee.

Ha ha OMG have you set up secret cameras in my house?!?!!

This bugs the hell out of me, to the point where I can't be in the same room as people eating - I did think I was just neurotic but found out that there's actually a name for it - "Misophonia" or Selective Sound Sensitivity Syndrome (OK, I am probably quite neurotic as well...)

My longer-term lodger is a very polite eater (and often stays at his GFs) but the newer lodger seems to have some kind of sinus issue and has a permanently blocked nose. Have you ever listened to a mouth-breather eat noodles?! _pale_

Have learned to manage it by working around said lodger's cooking/eating habits and hiding in my room...therapy would probably be a better move but more expensive :rotfl:

Ballymackeonan

Friends of mine have a possibility of renting a room to a charity who would use it as accommodation for their workers or visitors as required, rather than putting them up in B & Bs. So the rental would be to the charity rather than to a series of lodgers. They've had long-term contacts with the charity, so know it's legit and that they would probably get on well with the "lodgers".

But does this meet the criteria for "rent a room" or does the room have to be rented to an individual? Has anyone any idea - I've looked at the Revenue website but can't see anything like a precise definition of lodger!

harryhound

I think the charity would expect to be invoiced. That invoice would appear in their expenses claim with the charities commission if not HMRC as well.
I would class it as running a B&B and thus earned self employment income?
Anyone else got any thoughts?