Rent-a-room scheme if you are renting :-)

WIAWSNB

Hi.

If someone is renting a property, can they then rent out one of the spare bedrooms under the RaR scheme, if it's ok with the owner?

Ta.

Alderbank

Short answer: yes.

The Govt says you can can opt in to the scheme at any time if you’re a resident landlord, whether or not you own your home.

'Resident landlord' means you must live there yourself and share some facilities with your tenant(s). The scheme does not apply to accommodation converted into separate self-contained flats.

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

WIAWSNB

https://forums.moneysavingexpert.com/discussion/comment/82094730#Comment_82094730

Thank you - that's promising.

sherlock228

yes, from the tax perspective, you can claim RAR if you are a resident tenant

but as you rightly say, your own LL may not permit it, so you need their permission.

and of course that does make you a LL in your own right but as the other person is your lodger that does water down many of the LL compliances you would otherwise need to follow:
- you do not need to protect any deposit you take
- you can evict with "reasonable" notice (eg. same day depending on actual circumstances)
- but you are still required to provide a safe environment, including, if applicable, the annual gas safety check

WIAWSNB

https://forums.moneysavingexpert.com/discussion/comment/82095034#Comment_82095034

Thank you. Yes, the current tenant is resident and on the CT register.

TroubledTarts

Is that not called subletting, most tenancies have clauses about this as well as all over 18 living in the properties must be declared to the landlord.

I would suspect you need the landlords consent but whether or not they can legally refuse these days who knows. I hope it's the case they can refuse this kind of setup.

As a landlord we would refuse the request but then if it was done under the radar we might never know.

FlorayG

It's allowed if the landlord is aware and gives permission however I'm not sure of the then legal status of the lodger; would they become a "permitted occupier"?

Alderbank

https://forums.moneysavingexpert.com/discussion/comment/82095752#Comment_82095752

No. Legally, a permitted occupier is completely different from a lodger.

Perhaps you are thinking of the term "excluded occupier" which can be applied to a lodger?

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82095059#Comment_82095059

https://forums.moneysavingexpert.com/discussion/comment/82095752#Comment_82095752

there is zero legal position between ultimate LL and the tenant's lodger

the contractual relationship is between tenant and lodger and therefore you are correct that the lodger would be a permitted occupier in relation to the LL if the LL has given permission to their T of course (if not then ultimately they would be a trespasser)

Therefore, the LL can only take legal action against his own tenant and must leave the tenant to sanction their lodger. Hence it most certainly is in the interests of the LL to ensure that any permission given by them to their tenant is clealry communicated and the tenant understands their responsibility (and exposure) if the LL must take action against the T due to actions of the lodger.

TroubledTarts

I can see this being abused by couples on benefits. Suggest they have split up and one rents a room.

Interesting and maybe it is already happening without LL's knowing a thing about it.

FreeBear

https://forums.moneysavingexpert.com/discussion/comment/82096031#Comment_82096031

DWP keeps an eye open for this sort of fraud. It isn't very difficult to match names to the same address and start asking questions.