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Monthly Archives: August 2020

Things to consider when renting a room in your home

Posted on June 30, 2020 at 3:58 pm

Renting out one of your spare rooms can be rewarding in more ways than one. Aside from the extra income sharing your home with someone can bring you new friendships and companionship. There are a few things you will need to consider when deciding if sharing your home is the right thing for you.

1. Although predominately it will be a room let, you will also need to share the main facilities. Your kitchen, bathroom, and living space will also be used by a tenant.

2. Will you have to pay tax? The government offers a ‘rent a room scheme’ which means if any earnings from your rental are under £7500 per year, you will not have to pay extra tax on this rental income. There are extra rules that apply with this scheme such as the room must be furnished and you must be living in the property also, so it’s worth checking the Gov website for these rules.

3. Your lodger has rights – you must be absolutely clear on how much rent is due and when. You will also need to consider bill shares. It is best to put this all down in writing and sign a mutual agreement to save problems arising.

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