As the UK pulls itself out of recession, many householders could find they are feeling the pinch financially. Those struggling to make ends meet may need to contemplate an increasingly popular way of raising additional monthly income – renting a room out to a student or young professional.
Before year or so, take on a lodger and there has been an increasing trend by homeowners to rent out a room in their house. Recent research by Santander (formerly known as Abbey) has revealed that the amount of homeowners that are now renting out a spare room has risen dramatically before year – increasing from 388,000 to 981,000. In accordance with the bank, that means that around 3% of all homeowners in britain have a minimum of one lodger.
Definitely taking in a lodger can help downturn-strapped homeowners, as the average weekly rent charged for a room is around GBP90. Plus, rental rate could be much higher, depending on where in the country you reside.
Before you rent your room here a few points you must keep in mind
– Check your mortgage if renting a spare room is let, to determine. You will need to write to your mortgage holder to tell them. Additionally contact your house insurer to permit them to know about your plans whether you have to amend your policy, and learn. Finally, you must make sure that all the safety regulations are met by your home – be fire alarms that are fitting or it gas appliances checks.
– ensure you understand the legal and financial implications of renting a spare room outside. As an owner occupier, that you do not have to enroll as a landlord. They rent out a fully furnished extra room under the Rent a Room Scheme. homeowners can make up to GBP4,250 per year tax free if
– You will have to work out in advance utilities and other expenses that are shared will be shared. You will also have to agree whether overnight visitors are allowed, together with whether you wish to welcome them into your home as a portion of the household or for your each to keep to yourselves.
– It is just not included to be tenancy should you share your home with a lodger as an owner occupier, so your lodger will never be entitled to a lot of the statutory protection given to tenants. It is best to employ a written contract stating what’s permitted and what’s not to avoid possible mistakes.