Take in a lodger to earn some tax-free money!

Posted under Advice by Alan

If you have space in your home and want to use it to earn some money, take in a lodger!

The earning from your rented room is tax-free if it does not exceed three hundred and fifty pounds per month.

The demand for single accommodation is high. Thousands of households earn an extra income by letting out a room to college or university students or temporary or transient staff of a company.

A lodger gives you more control over the situation than a full tenant does because he does not have the security of tenure.

Some pointers for renting a room:
1.    Rent a room only if you live in the main residence most year round. If you move out, the lodger would become a full tenant!
2.    Do not let a self-contained part of the property. The lodger should have to share the kitchen or a bathroom with you.
3.    The lodger has to live in the room, not use it to run a business
4.    Before letting to a lodger, get a written permission from your landlord if you are a tenant.
5.    Inform your insurers as they may have to change the cover. Ask the lodger to insure their possessions
6.    Keep the mortgage lender informed about the lodger you take in

It is your duty to care for the lodger’s health and safety. Any furniture and/or appliances provided by you should meet the safety standards.

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