Living between two homes - advice needed

mcb88

I own a flat in Manchester and I am moving in with my partner who lives just outside Greater Manchester. 

I want to keep my flat as I travel a lot for work and also work late in Manchester so might choose to stay over in my spare room on occasion.

I am planning to rent out the main room, whether that's AirBnB (or similar), Theatre Digs, or a long term tenant (/lodger?) I haven't quite decided yet. 

I'm not too interested in making any profit from this endeavour. All I want to ensure is my costs are covered for my mortgage, bills, and upkeep of the flat. In short, whatever money is made from renting I want to equal the outgoings to run the flat.

Any advice?

Flugelhorn

the one thing that is worth checking on is whether someone is really classed as a lodger if you aren't living there - not sure how that works but does affect their legal rights.

certainly a relative moved to a new area and got a similar arrangement through spareroom - the owner was living elsewhere most of the time so "lodger" got free run of the house etc for much of the time - suited both parties

theartfullodger

As you will be genuinely living with partner it willbe an AST not lodger.  Get educated! Cheaper than the alternative.

mcb88

What's an AST...? 

SiliconChip

Get educated, as artful says. (Assured Shorthold Tenancy).

https://www.gov.uk/tenancy-agreements-a-guide-for-landlords/tenancy-types 

And as it'll be an AST it wll be your tenant's home, not yours, so you will have no right to access the property without giving the appropriate notice, and even less right to stay there. I don't really think renting is the correct solution for you, it would be better to sell, put the money in a high interest account, and use the interest to pay for a hotel/B&B for the occasional nights you need to stop over.

theartfullodger

Could be an AST for just the room plus access to common areas.  But then you'd probably be liable for council tax.  Issues of utility bills of course etc etc etc 

Get educated in how to be a landlord and landlord/tenant law 

Cheaper than the alternative (ignorance....) - unless you're not bothered about ever getting possession back...(seriously...)

Good luck......

km1500

this all hinges on whether your Manchester flat remains your main residence by this I mean it is the place where you receive your post where the tax people and credit card people and bank accounts are registered and where you are registered to vote on the electoral register. you also need to spend time there sleeping etc

it's also means of course what you mean by moving in with your partner do you mean you are transferring your main residence there or do you mean that you're going to just spend quite a lot of nights there whilst keeping your flat in manchester as your main residence.

if the Manchester flat remains your main residence then you can have a lodger there without any problems other than the fact it seems they might be there on their own for rather a long time. you must ensure that the lodger only has access to their room and the kitchen and the loo (and the sitting room if that is what you want) and that they do not have access to the other rooms and particular your bedroom thus there is no question of the flat being only occupied by them at any one time

it would be good to get some legal advice on this otherwise you could find yourself locked out of your flat with no redress

propertyrental

As explained above, it hinges on where you 'main home' is.

A 'lodger' (Excluded Occupier) has few rights ad can be evicted easily.

A' tenant' with an Assured Shorthold Tenancy has a lot of rghts and cannot be easily removed.

There are also rules for both regarding eg size of deposit you can take plus other factors, and a lot of additional rules for a tenant.

see

Post 2: Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new tenant protection (2015) plus the Homes (Fitness for Human Habitation) Act 2018

Post 3: Deposits: Payment, Protection and Return.

Post 4: Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

Post 5: Rent increases: when & how can rent be increased?

Post 6: Repossession: what if a LL's mortgage lender repossesses the property?

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

Post 9: Letting agents: how should a landlord select or sack?

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

sheramber

If it is an AirBnB who will clean teh flat and wash bedding at end of stay?

Remember you wil lbe due to pay income tax on your profit. The Capital repayment part of your mortgage payment is not an allowable expense. The interst part is only allowed as a tax credit at 20%.

You may be due to pay Capital Gains tax when you eventually sell.