Can I use rent a room scheme?

Blue_Carbon

I own a property and let a family member live there, however I live elsewhere with my parents. 

The family member pays for utilities and mortgage, but I don't charge any extra rent. 

If I was to start charging some rent would I qualify to use the rent a room scheme if I don't use the property as my main residence? 

MaryNB

Blue_Carbon said:

I own a property and let a family member live there, however I live elsewhere with my parents. 

The family member pays for utilities and mortgage, but I don't charge any extra rent. 

If I was to start charging some rent would I qualify to use the rent a room scheme if I don't use the property as my main residence? 

You already charge your family member rent if they're paying money to cover your mortgage. Do you have a regulated BTL on the property? A tenancy has already been established since they pay rent, I hope you have a formal agreement in place. 

Sounds to me like another person living there wouldn't be a lodger under the rent a room scheme, they'd be another tenant. 

theartfullodger

You have an AST with this family member, regardless of what any paperwork says.

No, rent-a-room is for landlords genuinely living in same property.

Are you declaring ALL the mortgage contributions and paying tax for what your relo pays as rent, as that what it is.  HMRC fines and penalties can he painful (quite right to).

As presumably you've not got and have no proof of servicing all the necessary paperwork, you'll likely have a position where any attempt to evict using s21 would find it was invalid.

Does tenant's payments go up when mortgage interest rates go up?

Humbly suggest you get some training in being a landlord.

Slithery

You already charge rent and as the property isn't your main residence you can't use the rent a room scheme.

Are you declaring this rent and paying the correct tax to HMRC?

Is there a written tenancy agreement and did you provide all of the information that you're legally obligated to to your tenant before they moved in (EPC, GSC, how to rent booklet, electrical report, etc etc)? If you've failed to do this then it may prove impossible for you to ever evict them.

I suggest you read...

New landlords (1)

New landlords (2)

canaldumidi

Blue_Carbon said:

I own a property and let a family member live there, however I live elsewhere with my parents.

So non-resident landlord
The family member pays for utilities and mortgage, so chargng rent  but I don't charge any extra rent. well the amount of rent you charge is irrelevant so far as your question is concerned.

If I was to start charging some rent you already charge rent presumably equal to yoru mortgage payments  would I qualify to use the rent a room scheme if I don't use the property as my main residence?

Clearly you will need to declare the rent you are already charging to HMRC.

Rent-a-room scheme (as the name implies!) is for resident landlords providing a room, not a property.

Rent-a-room scheme applies to lodgers, not tenants.

Assuming this is England, have you complied with all the tenancy requirements? See the links in Slithery's post above.