If you have a spare room and want to make some extra cash, then consider if you could benefit from having a lodger. A lodger is someone you aren’t typically related to who will pay to rent a room in your home – but most often, they will share the bathroom and kitchen with you.
If you have more space and multiple bathrooms, then you can offer (and charge) more.
Photo by MOHD AZRIN on Unsplash
Do I need permission to have a lodger?
If you are a homeowner and you have paid off your mortgage, then you are free to have a lodger. If you are still paying your mortgage, then you will need to have a conversation with your lender and read through all of the details to make sure you are free to have a lodger.
Sometimes a private tenancy will mean that you are not allowed to have a lodger.
Read through all of the paperwork and agreements that you have from your landlord to make sure that you do that legally.
Remember that having a lodger and subletting are different in that lodging is when the person gets meals, shared space, and a bedroom. Subletting happens when the person on the lease rents out the property while they are not there – this can be part or all of the property.
Benefits
If you claim any benefits that pertain to housing benefits, job-seeking benefits, disability benefits, or others – they may be impacted by the lodger.
Assuming the lodger is paying a weekly or monthly amount, a certain amount will be ignored when calculating your benefits.
If you enjoy a single-person council tax reduction, then this will need to be changed to your council tax.
Clean and Tidy
It is your duty to make sure that everywhere that is shared is as clean and tidy as possible. You take the landlord’s role, which means you are responsible for fire safety regulations and that anything that lodger uses is up to safety standards.
You should ensure that you have lodger house rules so that you know who is responsible for what and when.
Immigration
If you don’t know your ledger well, then it is essential that you run some checks before you sign any agreement with them. It is up to you to check the immigration status of your lodger.
It is vital that the person that rents a room from you has the right to stay in the country. Keep in mind that if you have been taking rent from someone who potentially doesn’t have the right to remain in the country, you are at risk of getting a fine or worse.
Ensure that you check things like passports and other IDs and get references.
What do I need to provide for a lodger?
You must give a furnished room, use of other shared amenities such as the kitchen and bathroom, and a key to the main entrance door for your lodger (not a bedroom door key).
You can decide if you want to provide meals for the lodger and laundry and cleaning services too.
Ahead of having any lodgers in your home, it is important to make sure the house is ready: 5 Ways to Give Your Home an Update Without Renovations.