Renting out spare bedrooms - advice / pitfalls

Catplan

Hi all

Firstly hope this is the correct place to post this. Currently thinking about renting out spare bed rooms. I’m on my own in a 5 bed property. I’m considering renting out a double with en-suite, and a double room. Kitchen dinner, living room dinning room would be shared. I’m aware of the rent a room scheme and the 7.5k allowance.

im just at the information gathering stage and do need to tidy up a few bits around the property before advertising. Just looking for hints and tips of those doing it / with previous experience of doing similar.

If it matters I’m based in Scotland I’d be living in the property, mortgage is paid off but understand I’d need to inform insurance and council tax as currently single occupancy.

MovingForwards

Shelter has a lot of useful information.

breaking_free

Catplan said:

Kitchen dinner, living room dinning room would be shared. 

Nice of you to provide dinner and a dinning room (presumably your guests can make as much of a din in there as they like)  Sorry, couldn't help myself.
Seriously though, https://www.spareroom.co.uk/ has a lot of useful info so that should be your first port of call.

TBagpuss

I'm not familiar with the ruls in Scotland but endorse the suggestion to look at the website for Shelter to check that you are comply with any legal requirements, and that you are fully aware of your responsibilities.

Setting aside the legal requirements, on a practical level I would consider things such as:

• What notice period will you want? you will need to weigh the benefits of being able to get someone to leave promptly if it isn't working out against  the benefits of having more notice and fewer void periods

• . House rules - you don't want to have too many, but give some thought to what things are important to you, or where you may want to set boundaries . e.g. visitors, overnight visitors (allowed at all? how often? how many? do you need notice?) , smoking (is it allowed at all? If so, where?)  expectations around noise (e.g. no loud music before/ after certain times.) cleaning of the bedroom / shared spaces (what is the lodger responsible for? - is it just wiping down the tub after having a bath or are they expected to share the regular cleaning, for example)  parking,  if / where laundry can be dried / aired etc. 

• Practicalities around sharing - it sounds as though you will be sharing your kitchen, dining room and living room, and presumably bathroom for the non-en-suite room. So think about the practicalities, such as what storage /fridge space you will provide for each lodger, what the expectations are for things like cleaning up after cooking/eating, whether there are anything things which are off-limits or any restrictions about types of food tec. (don't assume that things which seem obvious to you are obvious to everyone - you may think it goes without saying that you clean up as you go along, and wash up and put everything away as soon as you finish eating - others might be comfortable with leaving things longer (or vice versa)  Some if these things may come under house rules, some don't need to be expressly written down, but it's sensible to discuss expectations (and listen to those of the potential lodgers ) before you move in together! 

• Especially now - think about whether you or the lodgers may need to work from home, and whether that changes anything - things such as usage of broadband or other utilities,   . whether it affects your insurance etc.

• How will you resolve any issues?

Remember it s a two way process. You are sharing your home and looking to make some extra money, but the lodgers will also be living there and it's likely that you will also have to make some compromises. 

RAS

Check the regulations regarding HMOs nationally and locally, as more than three tenants live there, it could be an issue/need licensing. 

Slithery

If you let out 2 or more rooms you may be liable for a CGT bill when you sell the property.

Catplan

Thanks and yeah spareroom.co.uk was first port of call, I may just rent out the en-suite room based on the above.

Mojisola

Catplan said:

Thanks and yeah spareroom.co.uk was first port of call, I may just rent out the en-suite room based on the above.

It would be better to start with one lodger while you get a bit of experience and learn what you can put up with.

[Deleted User]

RAS said:

Check the regulations regarding HMOs nationally and locally, as more than three tenants live there, it could be an issue/need licensing. 

Scotland has the same HMO rules regardless of which council area you live in. 3 unrelated people, not including a resident landlord, would require a HMO licence. 

[Deleted User]

@Catplan, lodgers in Scotland aka common law tenants required a minimum of 28 days notice to end a contract. I seem to recall a thread where a resident landlord had managed to give the common law tenant a contract such that it automatically kept renewing for another 12 months due to the poor way it had been written and tacit relocation so avoid doing that because that landlord wanted to evict but was having a hard time doing so because of the !!!!!! contract. 

https://scotland.shelter.org.uk/housing_advice/renting_rights/common_law_tenancies/about_common_law_tenancy_rights

zagubov

Lover_of_Lycra said:

@Catplan, lodgers in Scotland aka common law tenants required a minimum of 28 days notice to end a contract. I seem to recall a thread where a resident landlord had managed to give the common law tenant a contract such that it automatically kept renewing for another 12 months due to the poor way it had been written and tacit relocation so avoid doing that because that landlord wanted to evict but was having a hard time doing so because of the !!!!!! contract. 

https://scotland.shelter.org.uk/housing_advice/renting_rights/common_law_tenancies/about_common_law_tenancy_rights

I think it might be this thread here, which is a salutary warning to all. Don't be vague.
https://forums.moneysavingexpert.com/discussion/comment/76686530#Comment_76686530