How much should I charge my lodger to work from home?

sheramber

Does he have commuting costs?

My DIL saved £10 a day parking costs WFH during lockdown but my son cycles to work so his saving was negligible.

Presumably he is buying his own lunch supplies so what does it cost to cook a lunch?

Weekends will be no differnt to waht they have been up to now, so 5 days extra for cooking lunch.

I would suggest you charge the HMRC rate of £6 pw.

If he has to WFH he will be bills to claim tax relief for that amount.

You cannot out a cost on losing your sole occupancy during the day. Money give you it.


The alternative is to ask him to find other lodgings , but do you want to start with sone new and unknown?

TheJP

So here's my 2 cents,

1. If you have an agreement, re-check it to see if it clearly states that the lodger cannot work from home. You may want to re-draft one that outlines that they either can't work from home or if they do its a flat rate of £X per month additional.

2. I dont see the costs being much different but popping the kettle on a few times, additional power for laptop/electrical devices etc. You can also be clear around heating usage but if you are home in the day then i dont see that being an issue unless you never put the heating on.

3. The amount of people WFH since covid has increased massively and as far as im aware it has no effect or additional cost on insurance unless they are running a registered business from your home.

4. You need to decide if this is non-negotiable for you and if you are prepared to end the agreement and find a new lodger. This could cost you in lost rent and be stressful to find a suitable lodger and the potential of diluting the pool of they can WFH.

FreeBear

Chocolatebiccies said:

35har1old said:

Chocolatebiccies said:

elsien said:

Chocolatebiccies said:

Veteransaver said:

Chocolatebiccies said:

elsien said:

Ayr_Rage said:

Having someone working from your home will most probably affect your home insurance, you need to check your policy.

What makes you think that? If it’s just bog standard office work from home it doesn’t make any difference to the insurance. 

They are more concerned about businesses operating from the premises, which isn’t quite the same thing.
Working from home made no difference difference to my insurance at all.

I can’t see it’s going make much difference in terms of costs. Your Wi-Fi will stay the same. Yes there might be an extra light on but if it’s and energy saving lightbulb that’s not going to make a huge amount of difference. Heating – presumably the room is warm anyway? A few extra cups of tea? And using an ordinary laptop for office work isn’t going to bump up the electrics a lot. 

You are presuming an increase which isn’t necessarily going to be the case. 

I think you need to clarify in your head what the real issue is because it’s coming across that you just don’t want him in the house all day and the money side is a bit of an excuse. 

So the bottom line is, is he a good enough lodger to put up with the change? You could agree on a trial basis and see how it goes, but don’t make it about the money if that’s not the real reason because that just confuses things. 

I am a single mum and so the extra burden of extra finance or expense to me does worry me.

I don’t really want him working from home because I already work from home and I feel like my home will no longer be my home.  But I do like him.

I just need to make sure I won’t be out of pocket for letting him work at home.

The extra electric cost will be pretty negligible, unless he's running a bitcoin mining rig or gaming rig from his bedroom, the average laptop might use about 2-300wh per day, ie less than 10p. As you are there anyway then presumably there won't be any extra heating costs.
If his employer makes him work from home they should (though don't have to) pay him an allowance, and if not he should claim a tax rebate.
So from monetary perspective £5 a week should more than cover it and he'll likely be saving on commute costs/lunch costs too., but I feel your main concern is the fact he will be around the house all day. Which is understandable, I get annoyed enough when my kids are hanging around the house all day!
Is there nowhere nearby that rents a desk out, or a library/cafe he can go and work from, at least some of the time?

Thank you for your reply, it’s been reassuring.

There are a few hot desk trendy office spaces around but they are very expensive to rent.

I use Wetherspoons. You obviously can’t take confidential calls, but buy one tea and get free refills and they don’t seem to care how long you’re there for.
Slightly different situation because I have to use them when I’m out for the day as it’s too far to return home in between work visits but I can be there for three hours without anyone batting an eyelid. 

So you could still chuck him out for the occasional afternoon as part of the deal.

Wow, that’s a thought! I guess he could even go to a coffee shop 

Do you have a lodger agreement?

No we don’t…

That is rather unfortunate. I've always had a lodger's agreement and a set of house rules attached (nothing too demanding, just basic things like doing washing up after eating, no naked flames, no smoking inside).

Most of my lodgers have been out of work for various reasons, so I'm used to having one in the house all the time. That said, it has just been me and the cat for the last year, and there hasn't been any noticeable change in energy consumption (well, maybe 100kWh down over the year).

With a lodger working from home, there needs to be a discussion about noise and how it would impact on your own WFH. Any increase in utility bills is likely to be minimal unless he is running fan heaters & aircon units.

landsbeyondthesea

Unless you already agreed with your lodger that they could only be at home outside working hours you shouldn't be charging them anything extra. If they decided to take a week of annual leave and spend it in their room, would that be cause for an increase?

FlorayG

@Chocolatebiccies the bottom line is, it's your house, he's only a lodger, he pretty much has no rights.
If you don't want him WFH ( and I would absolutely not have it with any of my lodgers, they are either annoying you about the house all day or sitting silently in their room with you wondering what on Earth they are doing all day) then just say so. Every time I've had to get a new lodger I've had this worry about what they will be like and every time they have turned out to be nice people and I've been sad to see them go ( every one left because they moved on to a different job, not because of anything here). One did work from home for a short while and as I said it didn't feel right to me.
If you genuinely don't mind him WFH then what it actually COSTS is irrelevant. It's the inconvenience and annoyance to you. I think an extra £100 a month completely reasonable when you think of how much this is saving him. It's your house, you can charge what you like
If he 'baulks' at the amount you suggest just shrug and say "Sorry, but this is a change to our original agreement and that's what it needs to be otherwise sad to see you go but you need to  find somewhere else, please" and do NOT argue the costs with him

ThisIsWeird

Chocciebiccies, you've given us a good overview of your situation, and your relationship with your lodger.
Don't forget why you have a lodger in the first place - it's presumably to help make ends meet, and not for the company. 
You are lucky to have found someone you like and get on with. He is equally lucky to have what is clearly an ideal lodging for him, with all his cleaning needs met, and also with a nice person he gets along with. So far, so very good.
But he now is asking for a significant change to these conditions, and that needs you to be completely honest about the pros and cons, because there are both.
Pros: additional rent. And, um, er, that's it. 
Cons: slightly increased utility bills (easily taken care of by increased rent).
Loss of privacy. How do you currently spend your time at home? Presumably with Radio 4 on at a reasonable volume for most of the time? Bursting into song during Desert Island Discs? Spending the first hour of some mornings walking around in just your dressing gown? Taking a slow nuddy stroll from the shower to your bedroom? Feet up and some carp daytime tele? Tap dancing? Do you have girlie friends around at times where you have coffee and a loud chat (not trying to stereotype...)
All of that will likely have to change. It will no longer be solely your home during the day.
You need to be 100% clear with yourself - and then him - about how acceptable you will find these changes, and how prepared you are to compromise on them. Some folk would find it completely unacceptable; others will take it pretty much in their stride. Most, I think, would balance the pros with the cons, and find it 'acceptable' if it was made worth their while.
You need to sit down and think this through.
Other Q's - where will he be working in your home? Folk on here seem to presume it'll be in his bedroom. If so, great for your privacy, but not so good in having an extra room to heat - I presume you currently don't keep heating bedrooms during the day? But what if he wants or expects to use the dining table? 
More Q's; what is his work? Any idea what company he works for? And, any rough idea what he earns - very rough?
How does he currently commute? And, therefore, how much does his commute cost him, both in time and money? What will he save from this exercise?
Two things ring bells at the mo'; he is seemingly anal about calculating the minutia of the running costs. And, he baulked at what must be a reasonable £50 starting point!
Could you tell us what he currently pays, C-B?
So, think it through. Consider seriously what impact it could - will - have on your quality of daily life. Work out what you would find 'acceptable' as a result - eg, where he can work from, how loud you can play music. Whether you can hoover your home when you want to. How will you tidy his room if he's in there working? etc etc, and get ready for an honest chat. 
The extra utilities cost will likely be minimal - but not to be ignored - but I fear he doesn't understand the personal impact of what he is asking, and how it will impose on your quality of life. You need to make that clear to him - exaggerated if you need to (about singing and dancing!), so he 'gets it'.
Cuppa time.

Bigphil1474

What does he do on a wet weekend in January? Presumably he's at home? If the lodging is for 7 days a week I'm not sure whether he is working at home or having a day off to watch Homes under the Hammer makes much difference. If there's no extra cost in utilities then you are charging him for the privilege of using his home when he wants to?

There'll be a bit of leccy possibly - although he could charge his laptop overnight and use it on battery during the day, maybe a bit of extra lighting in the winter. If you are home all day do you heat the whole house? Personally, I'd just say you'll go with the government rate (£6 per week), and on a trial basis. If you don't like it, then it'll have to stop. 

ButterCheese

Chocolatebiccies said:

I floated the idea of around that figure and he baulked. I am not a confident enough person to assert myself in these sorts of situations, I wish I was.  But I am a bit of a pushover.  I struggle with difficult conversations and dread them.

My old landlady was like that.  She was not confident or knowledgable about what things cost (no offense!),  e.g one night I was cleaning the gas hob and must have accidentally knocked one of the knobs, so a tiny bit of gas was escaping.  She left me a note the next morning to say "gas left on all night - not happy".  After I apologised, I calculated how much a trickle of gas would have cost, which 20 years ago was about 30p at the very most.  Once she was happy she was not going to get a "massive bill", it was fine.

I think the money side is not going to be an issue, maybe £10/month would be fair to absorb the extra electric, plus a bit for the inconvenince of it.  But you have to consider what it is you want.  You said you liked him and want to keep him as a lodger, well that is worth a lot for a start.  If he's in his room all day, will it really affect you that much?  I doubt he will be running around the house all day helicoptering if he's working.  If he were to leave, you could get a string of orrible selfish people and then you'd wish you kept him.

So it sounds like it all comes down to the idea of him being there all the time, which is scary because it's new to you, but all you have to ensure is that he doesn't take the mickey - explain when and where you want privacy but ultimately that will depend on what you said at the time of renting.  So is he bound to stay in his room or can he sit in the lounge and watch TV etc?  When I rented rooms, I was free to use the lounge etc but I always stayed in my room because whatever the landladyw were watching, I had no interest in.

elsien

ButterCheese said:

Chocolatebiccies said:

I floated the idea of around that figure and he baulked. I am not a confident enough person to assert myself in these sorts of situations, I wish I was.  But I am a bit of a pushover.  I struggle with difficult conversations and dread them.

My old landlady was like that.  She was not confident or knowledgable about what things cost (no offense!),  e.g one night I was cleaning the gas hob and must have accidentally knocked one of the knobs, so a tiny bit of gas was escaping.  She left me a note the next morning to say "gas left on all night - not happy".  After I apologised, I calculated how much a trickle of gas would have cost, which 20 years ago was about 30p at the very most.  Once she was happy she was not going to get a "massive bill", it was fine.

I think the money side is not going to be an issue, maybe £10/month would be fair to absorb the extra electric, plus a bit for the inconvenince of it.  But you have to consider what it is you want.  You said you liked him and want to keep him as a lodger, well that is worth a lot for a start.  If he's in his room all day, will it really affect you that much?  I doubt he will be running around the house all day helicoptering if he's working.  If he were to leave, you could get a string of orrible selfish people and then you'd wish you kept him.

So it sounds like it all comes down to the idea of him being there all the time, which is scary because it's new to you, but all you have to ensure is that he doesn't take the mickey - explain when and where you want privacy but ultimately that will depend on what you said at the time of renting.  So is he bound to stay in his room or can he sit in the lounge and watch TV etc?  When I rented rooms, I was free to use the lounge etc but I always stayed in my room because whatever the landladyw were watching, I had no interest in.

Possibly less to do the money and more to do with carelessness and potential gas explosions? 

horsewithnoname

the insurance won’t be an issue unless customers/clients are visiting, or there is anything that might up the risk, such as expensive stock or equipment on the premises. 

Just someone with a laptop won’t affect your insurance in my experience.