Page 3 | Renting out a room to a lodger

Spegit · 2023-07-11T17:29:46+00:00

We've just applied for a mortgage and things are SO much worse than when we first started down this road with selling our place and looking for a new one a few months ago. The interest rate we've managed to get is close to 6% for a 3-year fixed term and it is hundreds more per month than we expected. It's still do-able financially but I'm thinking about whether we should consider renting out a room to a lodger. It would potentially work quite well because the top floor has a bathroom and so the person could have a top floor room and their own bathroom. The house is four bedrooms and there are just two of us plus two cats and a dog. We both work from home a lot so wanted to each have a study, which we could still have. (We were looking for a 3-bedroom house but have ended up going for a 4-bedroom one.) Just wondering if anyone has any experience to share of renting a room to a lodger. Would be interested to hear any views. We're in our late 40s, no kids. It's 20 years since I was last in a houseshare but I did really enjoy it. Of course I get that this wouldn't be a houseshare... anyway, interested in any views and/or stories.

IWantOutDoI · 16/07/2023 12:05

Consider culture differences, I manage very well with most cultures but I have found the use of the kitchen is a clashing point: If they are cooking enthusiasts who spend 3-4 hrs a day cooking everything from scratch, using every single appliance available in the kitchen at the same time, I can tell you it won’t be worth having them due to the increased bills and you will be kept up until midnight every day with very little access to the kitchen.

These days I am managing better, one of the first questions I ask is if they want to cook and what kind of food (ie. Vegans are lovely but will resent finding an animal corpse in the same shelf as their quien in the fridge).

I also let my dog decide, if the prospective lodger has not a clue how to behave with dogs around, I know we are going to have some problems.

MongoFrogman · 16/07/2023 12:09

My bedroom is right next to the lodger’s, with thin walls, so I definitely wouldn’t want to hear overnight guests. There’s no prohibition on dating, she would just always need to go to theirs. Or live in a houseshare with people her own age if she wants to do whatever she wants.

I am single and don’t have guests myself either! So it makes me uncomfortable when her friends are always traipsing in and out.

MongoFrogman · 16/07/2023 12:10

IWantOutDoI · 16/07/2023 12:05

Consider culture differences, I manage very well with most cultures but I have found the use of the kitchen is a clashing point: If they are cooking enthusiasts who spend 3-4 hrs a day cooking everything from scratch, using every single appliance available in the kitchen at the same time, I can tell you it won’t be worth having them due to the increased bills and you will be kept up until midnight every day with very little access to the kitchen.

These days I am managing better, one of the first questions I ask is if they want to cook and what kind of food (ie. Vegans are lovely but will resent finding an animal corpse in the same shelf as their quien in the fridge).

I also let my dog decide, if the prospective lodger has not a clue how to behave with dogs around, I know we are going to have some problems.

What cultures / nationalities do you find make too much use of the kitchen?

Original poster

Spegit · 16/07/2023 12:11

BarbiesManicurist · 16/07/2023 11:53

I have a lodger, and I will say the following things.

we have a dog who is... a lot of dog in a small package. My biggest selection criteria has been how people interact with the dog at the viewing - you'd be surprised how many people profess to love dogs and then ignore the dog on the viewing, and that's a hard no from me. You can usually find people on Spareroom who make some mention of loving dogs, often those who grew up with dogs and miss having them. Current lodger is a vet!

second selection criteria is how well we get on as people - I always block out an hour for viewings and offer tea. If we get chatting about random stuff it is a good sign. If they're in and out in 20 minutes then it's not a match.

if you want to dip your toes in the water then consider a short term lodger. Some of them only need it for a short time (e.g. a temp contract or semester abroad; we had one where her tenancy ended but she was trying to buy a flat and get through conveyancing).

draw up a contract - we use the £7.50 template one from Spareroom. We also have a set of house rules which covers everything from not letting the dog escape out the front door to clearing up after themselves.

there's an inescapable power dynamic, but it's something I always avoid flexing if at all possible. I treat lodgers as housemates as far as possible. One previous lodger introduced me to DP and we still socialise together.

in my experience it's easiest if they bring their own kitchen implements that require washing up (pans etc), supply all their own food, but things like loo roll and vacuum cleaner bags are included in the rent (I do it all bills included).

with regards to overnight guests, I think zero guests is a bit unreasonable - you're essentially limiting yourself only to the perpetually single who don't envisage themselves dating. It's common to have a rule saying that there's a maximum number of nights they can have a visitors over, or that if they have a bf/gf over for 1 night a week then they have to go to theirs 1 night a week (being flexible for LDRs). Personally I have a rule that they have to have known guests for a minimum of 24 hours - which really means that they can't go to a nightclub and randomly pick up a stranger for a drunken ONS.

lodgers don't have zero rights, but they have far fewer rights. One of those rights is 'reasonable notice' to leave; the Spareroom template specifies it as 4 weeks if there's no fault and 1 week if they've broken the lodger agreement. Unless they've just bludgeoned the cat to death with your antique vase and ruined the Persian rug in the process, no, you cannot turf them out on the same day. I have never yet evicted a lodger.

the first £7500 per year you charge, including bills, is tax free under the rent a room scheme. Anything over that and you'll have to fill out a tax return (not as scary as it sounds).

Thank you so much for taking the time - these pointers are super helpful.

Regarding filling in the tax return, I will have to look into that as I don't know anything about it but an initial question occurs to me: do you account for any costs against the income on which you will be taxed? I mean, if the room rent is bills included, presumably you can allocate a portion of costs (energy, WiFi) to offset the tax?

OP posts:

Original poster

Spegit · 16/07/2023 12:13

MongoFrogman · 16/07/2023 12:09

My bedroom is right next to the lodger’s, with thin walls, so I definitely wouldn’t want to hear overnight guests. There’s no prohibition on dating, she would just always need to go to theirs. Or live in a houseshare with people her own age if she wants to do whatever she wants.

I am single and don’t have guests myself either! So it makes me uncomfortable when her friends are always traipsing in and out.

Oh god no, noises through the walls would be miserable. I hear you. Fortunately our set up is that the lodger would be on a different floor. Mind you, that's not to say that noise wouldn't come through the ceiling...

OP posts:

BarbiesManicurist · 16/07/2023 12:20

Spegit · 16/07/2023 12:11

Thank you so much for taking the time - these pointers are super helpful.

Regarding filling in the tax return, I will have to look into that as I don't know anything about it but an initial question occurs to me: do you account for any costs against the income on which you will be taxed? I mean, if the room rent is bills included, presumably you can allocate a portion of costs (energy, WiFi) to offset the tax?

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You can choose between using the rent a room scheme and deducting expenses - generally you'd only opt out of the rent a room scheme if you could show more than £7500 of expenses per year
https://m.spareroom.co.uk/content/info-landlords/rent-a-room-scheme/#:~:text=As%20long%20as%20you%20don,%2C%20whichever%20you're%20doing.

Rent a Room Scheme

Rent a Room Scheme. Learn how you can rent a room tax free with the SpareRoom tax break, giving you Â£7500 / year lodger allowance. How does the tax relief work? Do you have to declare your rent a room income?

https://m.spareroom.co.uk/content/info-landlords/rent-a-room-scheme#:~:text=As%20long%20as%20you%20don,%2C%20whichever%20you're%20doing.

Original poster

Spegit · 16/07/2023 12:36

BarbiesManicurist · 16/07/2023 12:20

You can choose between using the rent a room scheme and deducting expenses - generally you'd only opt out of the rent a room scheme if you could show more than £7500 of expenses per year
https://m.spareroom.co.uk/content/info-landlords/rent-a-room-scheme/#:~:text=As%20long%20as%20you%20don,%2C%20whichever%20you're%20doing.

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Thanks so much!!

OP posts:

Ourladycheesusedatum · 16/07/2023 12:38

I've now had a few lodgers.
The short term drama one he left after 6 months, I sighed with relief. He did however pay on time every time.
A two year lodger who was there to save enough money to buy a house outright. No problems with her ever. Missed her when she went.
A long term fella from Argentina, lovely man, I however needed the room back 5 years in so I went out of my way to find him another sweet set up like mine. It took months but I finally found a great place for him, hes still there. He says he would move back in a heartbeat if I could take him.

Pets were allowed (not snakes or rats) with discussion. I didnt want to be default carer for a pet. I didnt want to be left with an unwanted pet either. And I certainly didnt want to be cleaning up after someone else's pet.
The contract was short, it included pet stuff, cleaning stuff, rota, which cupboards etc. And a week notice from either party.

IWantOutDoI · 16/07/2023 12:42

By the way, I charge per week, it allows me to keep my two week notice tidy in case I need to ask them to leave. I have never had to though.

BarbiesManicurist · 16/07/2023 12:45

Spegit · 16/07/2023 12:13

Oh god no, noises through the walls would be miserable. I hear you. Fortunately our set up is that the lodger would be on a different floor. Mind you, that's not to say that noise wouldn't come through the ceiling...

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At this stage I would keep in mind that it's your lodger's home too. Can you guarantee the lodger will never have to listen to you and your DP?

Seeing as many house shares and lodger agreements require that if they host a partner for one night then they go to the partner's for one night, it could easily make dating very difficult and you could find yourself losing a very nice lodger for the sake of 5 mins of noise.

If you do hear anything, lie back and think of England the money.

IWantOutDoI · 16/07/2023 12:51

MongoFrogman · 16/07/2023 12:10

What cultures / nationalities do you find make too much use of the kitchen?

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Mine! I don’t but we are big when it comes to food! Probably one of the reasons I am divorced, the kitchen looked like a Christmas lunch had been cooked every single day!

Totalwasteofpaper · 16/07/2023 12:55

I had good and bad lodgers.

Lodgers made a HUGE dent in my mortgage on my first flat when i sold after 7 years i had 5 years left on the mortgage 🤩🤩🤩

Agree with not undercharging and i found the best questions to ask are:

what do your work days look like?
what do your weekends look like?

MongoFrogman · 16/07/2023 13:08

Lounge access is something to consider. Can you imagine yourself and DP sharing the lounge with this person of an evening?

(So many SpareRoom adverts declare a love for binge-watching Netflix or trashy TV. That’s my idea of hell! And my choice of what to watch might be theirs).

If not would you consider taking turns using the room, or let them use it a few nights a week to the exclusion of yourself?

Or will the lodger have a large enough bedroom or ideally a second room
where they can unwind?

It’s not necessarily the end of the world if your answers are No, No and No! You just have to find a lodger who works evenings or has a hectic outside social life.

Having a lodger who never goes near the lounge and is “happy” staying in their bedroom isn’t much of a win, in my experience, either. It makes me feel weird having someone in my home that is hiding away, and that neither of us would choose to spend time together.

But yes, thinking of the money does help!

Original poster

Spegit · 16/07/2023 13:09

BarbiesManicurist · 16/07/2023 12:45

At this stage I would keep in mind that it's your lodger's home too. Can you guarantee the lodger will never have to listen to you and your DP?

Seeing as many house shares and lodger agreements require that if they host a partner for one night then they go to the partner's for one night, it could easily make dating very difficult and you could find yourself losing a very nice lodger for the sake of 5 mins of noise.

If you do hear anything, lie back and think of England the money.

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😂 I will remember your words if the situation arises.

OP posts:

TheCountessofFitzdotterel · 16/07/2023 13:12

Re guests, you can be as strict as you like as long as you make the rules clear at the outset and accept that will limit the people you get. One of my lodgers previously viewed a house where the elderly landlady allowed ‘no young men visitors of any description’. This would have been a deal breaker for her. But when I was lodging it was for a weekly commute, I was married, there was no way on earth I would have wanted to bring anyone back so that would have been absolutely fine.
Also remember you can start with a rule and relax it. One of my nicest lodgers had a boyfriend over a lot, beyond what most people would consider reasonable, but they were no trouble, he was nice (and fixed some stuff for us in the house), we told her it was fine. Another one had her 6 year old nephew to stay sometimes, which is not something I would recommend as a blanket rule for everyone but once we knew and trusted her we were happy to agree.

Original poster

Spegit · 16/07/2023 13:12

MongoFrogman · 16/07/2023 13:08

Lounge access is something to consider. Can you imagine yourself and DP sharing the lounge with this person of an evening?

(So many SpareRoom adverts declare a love for binge-watching Netflix or trashy TV. That’s my idea of hell! And my choice of what to watch might be theirs).

If not would you consider taking turns using the room, or let them use it a few nights a week to the exclusion of yourself?

Or will the lodger have a large enough bedroom or ideally a second room
where they can unwind?

It’s not necessarily the end of the world if your answers are No, No and No! You just have to find a lodger who works evenings or has a hectic outside social life.

Having a lodger who never goes near the lounge and is “happy” staying in their bedroom isn’t much of a win, in my experience, either. It makes me feel weird having someone in my home that is hiding away, and that neither of us would choose to spend time together.

But yes, thinking of the money does help!

We don’t have a TV. And won’t be getting one. I guess they will need to watch in their room if they’re into TV.

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TomorrowToday · 16/07/2023 13:16

@Spegit how much are you going to get
Per month?

heartofglass23 · 16/07/2023 13:25

Do it.

It's basically free untaxed money.

As long as you don't mind the hit on privacy.

Original poster

Spegit · 16/07/2023 13:29

TomorrowToday · 16/07/2023 13:16

@Spegit how much are you going to get
Per month?

Not yet sure - need to explore the local market a bit more but initial thought is will ask for £850/month. It’s a large room with own (not en-suite but just next door) bathroom.

OP posts:

Original poster

Spegit · 16/07/2023 13:30

heartofglass23 · 16/07/2023 13:25

Do it.

It's basically free untaxed money.

As long as you don't mind the hit on privacy.

Well I expect I will have to pay tax because will go over the £7,500 tax-free allowance.

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MongoFrogman · 16/07/2023 13:37

£850 is a lot to expect a lodger to pay, even in London. How does that compare to rooms currently for rent in your area on SpareRoom?

Lodgers generally expect to pay less than if they were renting a room in a flat or houseshare with people their own age. Partly that’s because they’ll expect bills to be included, but also for there to be a live-in-landlord discount!

However - if there’s a real shortage of rooms perhaps you’ll find someone who’ll pay the same amount even though they’re a lodger.

BarbiesManicurist · 16/07/2023 13:48

MongoFrogman · 16/07/2023 13:37

£850 is a lot to expect a lodger to pay, even in London. How does that compare to rooms currently for rent in your area on SpareRoom?

Lodgers generally expect to pay less than if they were renting a room in a flat or houseshare with people their own age. Partly that’s because they’ll expect bills to be included, but also for there to be a live-in-landlord discount!

However - if there’s a real shortage of rooms perhaps you’ll find someone who’ll pay the same amount even though they’re a lodger.

If it includes bills, that's not horrendous for London. OP says she's in SE zone 3.

On Spareroom, filtering by en suite, bills included, all week, live in landlord around Beckton shows rents ranging from £800-£1399 per month, so £850 would be on the lower side.

BarbiesManicurist · 16/07/2023 13:49

PS if it's their own dedicated bathroom I'd advertise using the en suite tickbox and explain in more detail in the advert.

Flipple · 16/07/2023 13:54

Wow- £600 a month extra a month is a lot of cash to help with the COL or to help pay off the mortgage…

MongoFrogman · 16/07/2023 14:04

BarbiesManicurist · 16/07/2023 13:48

If it includes bills, that's not horrendous for London. OP says she's in SE zone 3.

On Spareroom, filtering by en suite, bills included, all week, live in landlord around Beckton shows rents ranging from £800-£1399 per month, so £850 would be on the lower side.

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Ah yes, I forgot the detail of it being en-suite.

It always seems to me that young professionals with decent salaries all want to live in SW postcodes though, so I’m not sure who there’ll be for it in zone 3, SE.