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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To charge my lodger more?

51 replies

PeanutOil11 · 11/01/2022 13:21

Hi Everyone,

Cross-posted from Money Matters for traffic

I got a lodger in about seven months ago and am charging a set monthly rent that includes all bills. In hindsight, the amount I am charging is a bit low, but just wanted to get someone in at the time and wasn't thinking :/ Got the lodger, as need the extra money for bills, mortgage, etc. Anyway, my energy bills (as will be the case with everyone) are shooting up in a month or so's time when my fixed tariff ends. Is it reasonable to ask my lodger to pay more? How would you approach this conversation? He is on a monthly rolling agreement. I want to approach this sensitively and fairly.

Thank you for your advice :)

OP posts:
LaBellina · 11/01/2022 13:24

Just show them the difference in costs and explain the situation. They could say no and this wasn’t initially agreed.
That leaves you with the choice of considering to end the agreement with them
and find someone else. I think the key to approaching this situation is clear, open communication about the costs.

MorningStarling · 11/01/2022 13:28

I think it's too soon to increase the rent, you should wait until they've been there a year. Even then you shouldn't increase it dramatically, maybe 5% or so.

HairyScaryMonster · 11/01/2022 13:35

It's fine to increase on a rolling contract, don't forget it's expensive now as it's winter, make sure the extra is appropriate for summer too.

MsMarch · 11/01/2022 13:40

If I had my rent increased after just 7 months, I'd be pretty angry. I think at 12 months you can increase it. If necessary, more than would be ideal but if you can highlight and show increased costs, then you might get away with it. Or the lodger might tell you to get stuffed.

DogDaysNeverEnd · 11/01/2022 13:49

What kind of increase are you thinking?

ScaredOfDinosaurs · 11/01/2022 13:58

It's a business decision. Approach it as such.

How desirable is the room? Would you be likely to get another one quickly if he opted to leave?

MatildaTheCat · 11/01/2022 14:03

How much is the lodger impacting on your bills? If they are home all day while you are out then yes, they will be adding to the bill. If you are both there or both out then not so much.

Even a week or two with no lodger will take a while to recoup if you look for a new person. Also from what I hear a good lodger is worth hanging on to.

Dozycuntlaters · 11/01/2022 14:05

You can't really increase it after 7 months, I think you should leave it till 12 months are up. Also, is what you are charging the market rate, and how much are you wanting to increase it by?

Original poster
PeanutOil11 · 11/01/2022 14:10

Thanks, all. Useful advice.

@MsMarch Am prepared for that. It would be a hassle if he moved out, but could deal with it. Noted about the 12 month point, though. Maybe I should just grit my teeth and wait until then to have the conversation/raise it. In that case, do you think it would be fair of me to impose limits on use of heating, etc.?

@ScaredOfDinosaurs In past, it's only taken me circa 2 weeks or so to get someone in. I'd rather not have to get another person in though, as I do get on OK with him. I also think it would be a pain for him, as he is very settled in now I think with all his stuff, etc.

@DogDaysNeverEnd 10%. Currently charging £400, so would increase to £440.

OP posts:
CliveThighs · 11/01/2022 14:10

How pleasant is he to live with? Does he always pay his rent on time? Etc. Because you could risk having him leave if you increase the rent, and will that be worth the risk?

Personally I'd wait another 5 months and then discuss a rent increase explaining that costs have increased since he signed the contract.

MsMarch · 11/01/2022 14:18

@MsMarch Am prepared for that. It would be a hassle if he moved out, but could deal with it. Noted about the 12 month point, though. Maybe I should just grit my teeth and wait until then to have the conversation/raise it. In that case, do you think it would be fair of me to impose limits on use of heating, etc.?

Honestly, no. It might be that this is a useful lesson to you in getting a lodger. Think more carefully about costs and, if you want to put restrictions in place, highlight those at the time of signing the contract. It's not really appropriate to move the goal posts. So if you do, that's fine, but he might then choose to move the goal posts and move out. Which sounds like you accept that.

LampLighter414 · 11/01/2022 14:18

People are just pulling 12 months from the air. Many full tenancies (never mind lodging agreements and houseshares) can be only 6 months.

I don't know what agreement you have signed if any, but assuming there is no specific or prohibitive terms about rent changes, I think you are right to be able to ask whenever you want. If they don't agree and its a concern, serve notice and you can re-advertise at a new price.

DogDaysNeverEnd · 11/01/2022 14:18

That's a pretty big increase but is it in line with how your bills are going up? If you undervalued, not taking the bills into account I think you should accept you made a bit of mistake. If the cost of file has jumped £100 (assuming it's just the 2 of you) then I think it's fair. It's really up to you, don't be out of pocket covering someone else's spends. You could also talk about ways to minimise the bills.

slashlover · 11/01/2022 14:19

Have your energy bills gone up by £960 for the entire year? Did you take readings for the entire year and average it out for a years worth of usage?

DogDaysNeverEnd · 11/01/2022 14:20

Fuel not file i.e. gas a lekky

JamieFrasersBigSwingingKilt · 11/01/2022 14:22

Being a lodger is different from a tenancy. This lodger is on a rolling monthly contract which means he can give notice any month, as can the OP. I don't know for sure but do posters saying 'wait a year', etc. recognise that fact, or are they conflating general terms for an assured shorthold tenancy?

Energy cost rises are/will be massive. Having a lodger is meant to be financially advantageous to the homeowner. I'd explain the facts to the lodger and explain why you're planning on increasing the rent and by how much. You could always give him, say, 2 months' notice of the price increase to soften the blow. He's also within his rights to try and negotiate a smaller price increase too. It's up to you, OP, to see if that would work for you.

itwasntaparty · 11/01/2022 14:25

They're in a rolling contract so can change the terms.

You can't impose limits on heating!

Justkeeppedaling · 11/01/2022 14:26

If you get a new lodger, I'd suggest doing it on a 50/50 bill share basis rather than all inclusive. Or if the lodger isn't with you at weekends, say, then you could drop that to 60/40 or whatever you deem appropriate.

With your current arrangement you will feel the pain if the lodger leaves lights on when they are out, buys his own electric heater, etc etc You need to give him some incentive to keep the bills down.

Asi1 · 11/01/2022 14:28

@LampLighter414

People are just pulling 12 months from the air. Many full tenancies (never mind lodging agreements and houseshares) can be only 6 months.

I don't know what agreement you have signed if any, but assuming there is no specific or prohibitive terms about rent changes, I think you are right to be able to ask whenever you want. If they don't agree and its a concern, serve notice and you can re-advertise at a new price.

No, not out of thin air.

Any rent increase after 6 months need to be agreed with the lodger. And 1 rent increase is allowed in a 12 months period.

Ariela · 11/01/2022 14:28

Can you do research and work out how much your electricity/gas is likely to go up to once on new rate? Then you could pre-warn him as in 'after next month, it's looking as though my fuel bills will go up by x% which is £y amount as my fixed deal ends, and I'm told to expect the variable rate to go up again in April when the cap rises. I know I charge you a very reasonable below average rent, but this means I have no spare capacity to cover this type of increase so I'm just letting you know I will have to share the cost of this with you'

TInkyWlnky · 11/01/2022 14:28

If he's on a monthly rolling contract then it's fine. I'd give him a months notice that it's going to have to increase. It's not an unreasonable amount you are increasing it to.

Original poster
PeanutOil11 · 11/01/2022 14:30

@MatildaTheCat He is normally out a couple of days a week, but he does wfh all day when he is in, so there is that. Agree re losing out while someone new moves in (a lot more than any money I would recoup through increased rent!).

@CliveThighs He is nice enough. The only thing that annoys me is that he is not very clean.

@MsMarch It's definitely a lesson, but I don't agree that I should have to say everything up front. If the costs spiral out of control then it's fair enough that I raise it (noting that he could decide to move out). If he has the heating on all day and prices have doubled then I don't think that it is out of order for me to raise it and either impose limits or charge extra. I'd provide notice.

@LampLighter414 Agreed. It's six month min term then rolling monthly after that (so a standard lodger agreement).

@DogDaysNeverEnd At this stage, it's looking like the cost will double. The good advice for me from your message and from other posters is that I need to really look at the increase in cost and make a fair assessment of how much of that is down to his energy use.

OP posts:
Ponoka7 · 11/01/2022 14:30

After 7 months a rise in rent is fine. 10% is less than everyone who pays the fuel bills is facing. Can he easily afford that?

Original poster
PeanutOil11 · 11/01/2022 14:35

@JamieFrasersBigSwingingKilt This is the solution that sits best with me.

@Ponoka7 Absolutely. He has a very well-paid professional job (much better than me!). I'm not quite sure why he took the place in the first place tbh . I think he could have gotten something much nicer (and more expensive).

OP posts:
Ponoka7 · 11/01/2022 14:38

Then go through the costs and tell him of the increase and why. Another rise shouldn't happen for six months, so get your figures right.

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