Do you have a spare room in your house or flat? You could earn a 2nd income, tax free, by renting out your room.
How much could I earn?
According to house-share website Spareroom, the UK average room rental is around £590 per month. The London average is around £710. Under the government’s Rent a Room Scheme, you are allowed to earn up to £7,500 per year (£625 per month), tax free, for renting out a room.
Can I rent my rooms?
If you have a mortgaged property, check the terms and conditions of your lender. If you are renting, check your lease or tenancy agreements to see if you are allowed to sub-let. If you own your home outright then you’re good to go.
Who do I need to notify?
- Your Insurance Provider – Let them know that you wish to take in a lodger and check that your policy covers this. If not, you may need to upgrade your policy. Any increase can be reflected in the rent.
- The Local Council and Benefits Office – If you are receiving benefits, you should inform your local benefits office to find out how they will be affected before going ahead.
How to get FREE advertising and find lodgers and housemates quickly
The best way to reach the largest audience and at the lowest cost, is to advertise on the internet. With web sites like Easy Roommate and Spareroom you can advertise for FREE. Your ad will be much more effective than in a newspaper, as these sites specialise in house and flat sharing, so the people viewing your ad will be actively looking for somewhere to rent. They also have registers of people looking for rooms who will be notified as soon as you advertise your spare room. You can even search for interested tenants in your area and contact the ones you prefer.
Am I ready to share my home?
Remember, you will be sharing your home with someone new and allowing them access to key parts of your home, i.e. lounge, bathroom and kitchen. So, if you are used to your personal space and privacy, you should think carefully before taking in a lodger. Consider the additional wear and tear on your home too. Give some thought to how durable your furnishings are and consider changing items such as the spare bed so that it can withstand the rigours of renting.