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Enquiry - Lodgers

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  • FreeBear
    FreeBear Posts: 18,195 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 19 July at 8:45AM

    I was thinking of charging £600 for rent to help pay for my mortgage then split the utilities (council tax, electrics, water, wifi and insurance) in half. That in total per month would be £750 roughly for the lodger. 

    I reviewed rooms to let on Spareroom in my area and discovered that furnished rooms were being rented for £500 - £550 excluding bills so am undecided.

    When I was renting a room, I used Spareroom to get some idea of what the "going rate" was in my area. The rent+bills rooms are primarily aimed at students, whilst the all-inclusive, more for the professionals.
    I then sat down and did a rough calculation of what my running costs were (gas/electricity/water, council tax) and pitched minimum rent to cover a reasonable share. Any "profit" was then put in to repairs & improvements. Doing it that way avoided any possible claim that the lodger was contributing to the household and making a claim on any increase in equity.

    By all means, do your sums and comparisons to come up with a reasonable figure, but I'd strongly recommend making it an inclusive rate. That way, there is no arguments over gas/electricity bills or having to chase for the extra money. Just make sure that your Lodger's Agreement has a clause allowing for charging for excess usage* and also regular rent reviews.
    *) Excess usage is very important if you have an EV charging point !
    Her courage will change the world.

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
  • Antithermal1723
    Antithermal1723 Posts: 10 Forumite
    First Post
    I definitely shouldn’t have used maintenance in regards to deposit, instead I should’ve said repairs if there have been damaged caused by the lodger 😅. 

    So in terms of deposit, that can be used for unpaid rent or is this only for repairing any damages that they’ve caused if that were to happen. I’m now aware that the deposit cannot be used for maintenance as that’s my responsibility 
  • RAS
    RAS Posts: 35,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Depends what you put in your contract.

    The other thing to absolutely make clear is notice period. If you are dealing with your bestie, this might be negotiated, by agreement because you know quite a lot about each other. In other cases, stick to a week each way. Your bestie might want a month like a rental, or might prefer the flexibility of a fortnight? Discuss.
    If you've have not made a mistake, you've made nothing
  • Antithermal1723
    Antithermal1723 Posts: 10 Forumite
    First Post
    Definitely! In my draft lodger agreement to relation to amendment of agreement, either parties should give a month’s notice period prior to termination of agreement. I was going to suggest two but if the relationship was to go sideways and wait two months to move out, that may be awkward haha.

    I’m asking loads of questions which I am so sorry about. I’m very new to this lodgering idea also 😅

    so in terms of the £7500 rent a room scheme, does that include rent and utilities that have been paid by the lodger? I’m assuming council tax is separate as that goes to the government? 
  • RAS
    RAS Posts: 35,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    A month's notice living with someone who you've discovered has a substance misuse problem, has been aggressive or financially abusive or just installed their partner is a long time. Ask for rent weekly and offer a week's notice, either way.
    If you've have not made a mistake, you've made nothing
  • Voyager2002
    Voyager2002 Posts: 16,251 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    RAS said:
    A month's notice living with someone who you've discovered has a substance misuse problem, has been aggressive or financially abusive or just installed their partner is a long time. Ask for rent weekly and offer a week's notice, either way.

    Things are somewhat different when the lodger is a best friend and former flatmate.

    Until last week I had an old friend as a lodger. I did not take a deposit, and there was no formal notice period. There were no issues around his departure.
  • sheramber
    sheramber Posts: 22,440 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Would your best friend not pay for any damage she caused?


  • Antithermal1723
    Antithermal1723 Posts: 10 Forumite
    First Post
    Update:

    I’ve decided to rent the room for £550 as it’s similar to the price according to spare rooms and our bills will be split in half. I’ve drafted a lodger agreement so that’s out discussion are in writing and it just covers my back (was advised to create one after speaking to a friend who also has a lodger aha). 

    The £600+ rent is crazy! I’m not sure why that figure even came to mind because I wouldn’t do my friend wrongly. 

    I really appreciate all your advice and feedback, it’s reassured me :) 
  • FreeBear
    FreeBear Posts: 18,195 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    RAS said:
    A month's notice living with someone who you've discovered has a substance misuse problem, has been aggressive or financially abusive or just installed their partner is a long time. Ask for rent weekly and offer a week's notice, either way.
    I have a clause in my contract that allows for immediate termination without notice. Typically in the event of the police being called, discovery of drugs, or theft/misuse of personal property. Perhaps I should add violent or drunken behaviour to the list.
    Yes, it is onesided that some may consider to be a b***ard clause, but I need to consider personal safety.
    Her courage will change the world.

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
  • Antithermal1723
    Antithermal1723 Posts: 10 Forumite
    First Post
    Oooo gosh! Have you encountered a bad lodger before? Luckily I know my friend very well and they don’t involve themselves with anything drug or crime related. 

    What other rules do you have in your agreement? 
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