Renting out a spare room can be a great way of earning some extra cash, but some people are put off by the perceived complexity of the process. However, renting to a lodger can be a fairly straightforward affair, and there is government help to make the endeavour more profitable. Since housing remains in high demand in the UK, this legislation also eases pressure on the nation’s accommodation problems.
Responsibilities and rent
As a landlord, you are responsible for keeping the property safe and in a good state of repair. You can take advantage of the government’s Rent a Room scheme, which enables you to make up to £4,250 profit a year, tax free. As a live-in landlord you also have the additional potential benefit of being able to end the tenancy earlier than if you rented out the entire property.
There are two types of tenant – an ‘excluded occupier’ and a tenant with ‘basic protection’. The former is someone who shares a living space with you or your family, while the latter does not, and has their own space for cooking, washing and living etc. If you wish to end a tenancy with an excluded occupier, this can be done more quickly than those with basic protection. Those with basic protection may have to be given a longer notice period, and if they refuse to leave you may need to go to court to evict them.
More information on renting out a room can be found here: https://www.gov.uk/browse/housing/landlords
Becoming a live-in landlord can be an effective way to earn an additional income from your property, and with the government’s Rent a Room scheme, it can mean you keep more of the profits. As always, it is advisable to get your property insured. You can obtain a home insurance quote which can include up to 4 tenants from Click4quote.com, who will respond promptly with a competitive quote.