Renting out room - help/advice needed

skintchick

Hi everyone!

I have decided (reluctantly) that I need to get a lodger at least inteh short term to help me keep my head above water.

I live in a very affluent and desirable market town close to Reading which has great shops, and close to London too.

I have advertised it at £300 pcm plus bills, which is the lower end of the going rate round here for a single room, and there is also car parking which is difficult to find in my town. Plus it is a house not a flat.

I have been contacted by a guy who has just finished an MBA, and starts a job near here in October, who has asked if he can pay £325 including bills because his student loan needs paying back.

Now, far be it from me to want him to be skint, but the council tax will go up by 25 per cent - £32 - and of course there will be more usage of heating, lighting, etc.

So, what bills is it acceptable to expect a lodger to contribute to? And do you think his offer is fair?

I've not done this before so I have no idea what's reasonable!

Thanks peeps!

Leeshieus

Maybe its just cause I'm from "oop North" but £325 seems like a bloody good offer! I'd take it! Surely £325 would cover a massive chunk of your mortgage/rent? Or the majority of your bills? Last year I was renting a room for £200 and that was expensive! If the bloke is working fulltime he won't be around much to push up the cost of your gas & electricity eh?

I'd expect a lodger to contribute towards everything, ie gas, electric, water and council tax as you won't be able to claim single persons discount legally with him there (if you did anyway) but it also depends on what he has access to, what facilities will he be getting for his money - a nice size room or a shoebox? en suite bathroom or shared? control of the TV remote

I think there would be a slight increase in your bills but nothing major. Why don't you discuss it with him and say that if there are significant increases in both energy costs and council tax you will have to increase his rent accordingly, but you wouldn't do so unless informing him first or without good reason, and the rise wouldn't be huge.

Also, would you be declaring the extra money? £325 a month tax free will help you a lot.

skintchick

ER, no. £325 is cheap! My mortgage is for only a quarter of the value of the house and that is £312.

THE council tax will go up by £36. My bills (not loans or stuff like that) are £179.72 without that increase included (or the mortgage, clearly)

Oop north is v v cheap compared to south east!

Last time I saw a room round here for £200 was about nine years ago!

skintchick

Oh, and I don't have to declare the money under the Gov's rent a room scheme. They let you have up to £350 a month free.

dinkylou

Its your choice, but I dont think I would accept that, not as you re offering at the lower end of the price bracket and your bills will go up.

Its understandable that he wants to pay off his student loan but who has nt got debt they would nt like to get rid of?

I personally would wait to see if you get any other offers and then if not, take him up on it.

(Also, would you want to live with him? Is he a nice bloke?)

ms_london

Personally, I wouldnt accept it either. Its not really an option to haggle on rent & bills - see if you get any more of a response.

Alternatively meet with the guy and see what he is like face to face - if he wants to pay less already do you think he would be a pain when it comes to coughing up for other things?

Try advertising on:

www.thegumtree.com

Well done on the decision though, its easier for you to do this rather than getting a second job - let us know how you get on.

Ms_London xx

skintchick

That's how I feel, dinky. Effectively it would end up being £235 for the room if you include the bills as they are, shared halves, and that is ridiculously cheap!

The room is a small single, but the house has a lovely garden, he'd be using the living room and he'd have me as company!!

ms_london

I would advertise for what you think you should be getting, rather at the lower end of the market - especially if it is a nice house, just the two of you, nice garden, close to amenities (??) etc etc. There will be someone out there who will pay it.

Ms_London xx

Leeshieus

skintchick wrote:

ER, no. £325 is cheap! My mortgage is for only a quarter of the value of the house and that is £312.

THE council tax will go up by £36. My bills (not loans or stuff like that) are £179.72 without that increase included (or the mortgage, clearly)

Oop north is v v cheap compared to south east!

Last time I saw a room round here for £200 was about nine years ago!

Yikes! So altogether you're paying out £500+ per month? :eek: Apart from making a mental note never to move south of Birmingham, I'm thinking you are well within your rights to charge out a room at £375-£400. Like dinkylou said, advise him of this, wait and see if you get any better offers if not take him up on it.. £325 will make such a difference

skintchick

I have it on gumtree already.

He just phoned me and said he can stretch to £350 but when I explained the bills breakdown - just for heat, light, tv and water totalling £168.72 with c/tax discount - he said he thought it was expensive! :eek: I am on cheapest possible!

He is living with parents right now in the Midlands and seems to have no idea how expensive it is down here. I know a guy who rents a room in London and pays £400 plus bills.

I don't think it would work out for the reasons Ms London says. I can't be bothered arguing.

This is why I didn't want to have a lodger - they are hassle and think you are ripping them off!

Annoying thing is he will probably be earning more than me as he has an MBA and I don't even have a degree!

*sighs*

skintchick

ms_london wrote:

I would advertise for what you think you should be getting, rather at the lower end of the market - especially if it is a nice house, just the two of you, nice garden, close to amenities (??) etc etc. There will be someone out there who will pay it.

Ms_London xx

Is very nice house in Henley-on-Thames, ten minutes' walk from town centre, River Thames, station, in quiet cul de sac with parking, lovely garden that's great for BBQs. Room is a small single, but I don;t expect him to stay in it all the time.

Just me and cat to share with.

Anyone out there want it? :rotfl: