Renting a room for business use

tiamaria · 7 April 2018 at 6:42PM

OK so I presently rent a couple of rooms on Airbnb, it works well but I'm not in a tourist area so my prices are very low, hence I could do with more income, like most of us i guess! I have liability insurance which covers my Air guests.

My friend needs a job and is a qualified Massage Therapist. He has the skills - & I have a spare room! are there any obstacles I need to look out for if I allow him to use one of my spare rooms for a percentage? It should be easy but Life experience tells me that nothing is ever that simple...

Owain_Moneysaver · 7 April 2018 at 8:08PM

It could be classed as change of use and require planning permission. As it involves a number of clients visiting your house it is likely to invalidate your house insurance as there's an increase risk of theft or public liability.

The fact that it's your friend renting the room to use for his business is an added complication.

Have you considered contractor accommodation or Monday-Friday lettings which may give you a more steady income compared to 'tourist' style one or two night guests.

If it is change of use and planning permission is required, you may also get into issues with Capital Gains Tax, business rates, business waste disposal and water charges, etc.

Renting a room for business use

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