Day 16 – Should you take deposits and use an inventory?
Inventories and deposits tend to go together. Again, these are things that not all lodger landlords will bother with. However, when letting a stranger into your house, there is no harm in being careful. A deposit is a payment taken for the landlord to hold against any damage to the property or breakages. If when […]
Day 15 – Should you use a lodger agreement?
Taking in a lodger is not the same as taking in a tenant, and a formal lodger agreement is less essential. Many lodger landlords never use a formal written agreement, and operate on a handshake and mutual trust. However although this is fine when things are going well, if there are any problems, it is […]
Day 14 – Should you have house rules?
When you decide to take in a lodger, you need to keep very much in mind that this is a financial business relationship. You should therefore treat it that way right from the start. This does not mean that you should not be friendly with your lodger (although see Day 18). However, you must be […]
Day 13 – What about rent and housing benefit/LHA?
Rent Today’s topic is in many ways the most important, as for most people the main reason they are renting out a room is for the rent. The first thing to consider is how much you are going to charge for your room. This will depend upon many things, among them: the location of your […]
Day 12 – What checking and referencing is needed?
Making a decision After the interviews (discussed on Day 11) comes the decision! It is important to choose carefully, as this person will be sharing your home. This section looks at checking and references. Remember that this is a business relationship. Although it is important that you like them, you are not looking for […]
Day 11- How do you interview new lodgers?
The interview This is an important part of the selection process. However, remember that prospective lodgers will also be checking out *you*, so put your best face forward and make sure the house is nice and clean and welcoming. It is often a good idea to have someone whose opinion your trust with you when […]
Day 10 – How do you draft adverts and deal with enquiries?
This section deals with the practical aspect of advertising for and finding a lodger. However first, a warning. Safety first We have already touched on security issues in the section on insurance. Before you launch into drafting out your advert and inviting strangers into your home, you need to be very aware that criminals often […]
Day 9 – How do you find lodgers?
After all the preparation, we are now finally at the stage where we can start looking for our lodger. Here are some suggestions: Friends and family Although it may seem unfriendly, it is often best to avoid taking in a friend or family member as a lodger. Particularly if you have not had lodgers before […]
Day 8 – What about Tax and Council tax?
Tax One of the nice things about taking in a lodger is that you can earn up to £7,500 (previously £4,250) tax-free under the government’s Rent a room scheme. The main downside is that some allowances, such as the Landlord’s Energy Saving Allowance (under which landlords can claim back the costs of buying and installing energy-saving […]
Day 7 – Will taking in a lodger turn your property into an HMO?
HMO issues There are three things you need to know: Whether your property is already an HMO, or Whether by taking in lodgers you will create an HMO, and Whether, if your property is an HMO, you will need to get a license 1. Is your property already an HMO? This may be the case […]
