How do I find out the market rate for renting a room out to a lodger?

sourpuss2021

artyclarty said:

I know it is not what you asked but double-check your council's rules on HMOs. I live in a university town so there are a lot of issues with substandard accommodation so stricter rules have appeared over the last few years. If there are more than 2 households living in one dwelling, you must have a licence and comply with HMO regulations - fire doors, hard-wired smoke and CO alarms, gas safety, ECIR regs etc. So we ended up just having one lodger and we used the spare room as an office/2nd living space.

He’ll be fine having exactly two lodgers so long as he owns the property.   It would need to be three or more lodgers to become an HMO.

Curiously if OP was himself renting with permission to sublet, then he wouldn’t be allowed to take in two lodgers because it would put the owner/head landlord in breach.

dimbo61

So you can earn £7500 tax free under the Rent a room scheme.
I read an article in the mail this morning where the average rent across the country is now over £600 a month as a tenant !
While London rents are over £900 a month rents in say Stoke on Trent they  were £420 
So vast range.
Is it a big double room ? Double bed or at least 3/4 as no one wants a single cheap bed with thin mattresses and metal frame.
Ensuite bathroom will always be nice
Parking, Wifi

propertyrental

Always have a contract (licence, not tenancy) and keep to weekly (or monthly if you must) rolling. No fixed term. 
And a short notice period. If things don't work out you don't wat to be stuck with someoe long term!

Read:

Post 10: Lodgers: advice & links for landlords & lodgers

NibblyPig

Thanks for the advice, one reason for asking is that I know some people that might be looking, and they asked me how much, and I said I don't really know.

I've checked with the council about 2 lodgers. I don't think 1 or 2 would make much difference regarding disruption, I will try to get just one to start with though.

As for CGT, I really don't know how to do the calculations. Where I live even one lodger would put me above the rent a room threshold, two would of course incur extra tax (and I'm at the 40% bracket) but I don't know the implications for CGT, about whether it's worth it in the longer term.

I have two very large double rooms, both furnished with king size beds, one of them has an ensuite but both are on the top floor with the master bathroom between them.

My room is on the ground floor. I only go up to the top floor to shower and brush my teeth, which is why it's just wasted space.

I do own my house. I also think the value of my house will go up quite a bit going forward as it's in Bristol city centre and they're redeveloping the entire area around me.

propertyrental

Two lodgers and you may lose Private Residence Relief when you sell and hence be liable for CGT. See

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64702