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Splitting housing costs
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sevenhills
Posts: 5,938 Forumite
I will be renting myspare bedroom out soon, just wondered what is a fair method of calculating the price.
If you own the house, how would you split the costs with a partner or lodger?
I pay £300 per month mortgage, but not sure that is relevant.
If you own the house, how would you split the costs with a partner or lodger?
I pay £300 per month mortgage, but not sure that is relevant.
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Comments
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Is it a large bedroom?
Does it have en suite?
Check it against other prices in your area on spareroom.co.uk
https://www.spareroom.co.uk/Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time0 -
Most people don't split or share costs. They charge the local going rate.
However, you can take whatever approach you like to calculate a price & may end up subsidizing your lodgers or pricing yourself out of the market.
Depending on what you charge you may have to pay more income tax or have any benefits impacted. MOST UK adults get some benefit, I'm not implying anything about your good self.0 -
sevenhills wrote: »I will be renting myspare bedroom out soon, just wondered what is a fair method of calculating the price.
If you own the house, how would you split the costs with a partner or lodger?
I pay £300 per month mortgage, but not sure that is relevant.
Which is it, a partner or a lodger as they are very different things?
A partner can be anything as it's whatever you agree. Typically though what your costs are is relevant as you choose something fair bearing in mind they aren't building equity so perhaps should pay less than you, but would need to pay to live somewhere so just half the bills is a little low. However opinions differ and there's isn't one right answer.
A lodger is a business arrangement and your costs are irrelevant. You look at what you are offering and what is the going rate in the area. Then decide what you'll accept and see if someone you woukd be happy to live with accepts that.Don't listen to me, I'm no expert!0 -
You look at what you are offering and what is the going rate in the area. Then decide what you'll accept and see if someone you woukd be happy to live with accepts that.
I have had some interest on spareroom.com but none has been succesful.
I have now paid £100+ to spareroom for them to promote my room and that allows anyone to contact me. I am wondering if £300 per month is too cheap.
I have a dog, which may be a negative to some renters, but I live in LS27 which is an ok area, but not a city center.0 -
The size of the room, furniture in the room, dounle bed with storage underneath, wardrobe double ( mirror fronted) chest of drawers.
Good quality photos and a floor plan.
Use of the garden, lounge/Kitchen and if parking is available all count.0 -
there are currently 19 ads for rooms in Ls27sevenhills wrote: »I have had some interest on spareroom.com but none has been succesful.
I have now paid £100+ to spareroom for them to promote my room and that allows anyone to contact me. I am wondering if £300 per month is too cheap.
I have a dog, which may be a negative to some renters, but I live in LS27 which is an ok area, but not a city center.
all are priced between £300 - £500 pcm
if you have had no interest at £300 then raising your price is not going to help matters. Your lack of takeup is down to other factors - did you get any feedback at all?0 -
Why not look up LHA room rate and use that as your minimum? Then add say £15 a week for bills?Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
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Your lack of takeup is down to other factors - did you get any feedback at all?
I did have one person view, so I put the others off, then he backed out because of allergies and me having a pet.
I have had a message today, although the person seems younger than I was looking for.
The LHA is £62.310 -
* check the market rate locally
* take into acount size of room
* consider whether you are restricting your lodger to bedroom/bathroom and kitchen (at set times?) or giving free rein of whole house (can charge more)
* decor, heating, facilities all affect what you can charge
* is there off-road parking? Wifi?
* are you charging on top for utilities/council tax or all-inclusive?
* do you expect the lodger to share cleaning? Whole house?Just their room?
* food? Will you share basics (tea coffee, washing upliquid)? Share the cost or they just use what's there? Or buy their own
* can they have visitors? Overnight?
All the above affect the overall 'market value' as the above will all affect how attractive your property is compared to others locally.
Did you say 'dog'? Well, at least your lodger won't go hungry......0 -
You really need to sell this room to a new lodger and I'm not sure that you're doing that right now.
No one needs to know your personal circumstances, but they do need to know about things like what the rest of the house is like, if they have free run of the lounge and kitchen, is there a bath and/or a shower, what's the parking like, what sort of wifi? The list goes on.
Look at what other adverts have included, try to sound professional and add a few photos of the rest of the house.0
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