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Thread: Benefits of a lodger

  1. #1
    Senior Member Lighttouch's Avatar
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    Benefits of a lodger

    It's hard to believe that I've had a lodger for 14 months.

    From a financial point of view it makes sense to rent out a spare room.

    The Government has a housing shortage. So they give financial inducements to people through their 'Rent-a-room' scheme. Before you ask the only non-means tested benefit I get is DLA.

    She was on the ball about Council Tax as she is considered to be a 'disregarded person' so I don't loose my single person discount.

    She's very considerate and easy to get on with. She empties the bins, keeps the kitchen in order, makes endless cuppers and helps out timing shoe laces if my fingers have had it and bringing shopping in.

    As a result I dropped her rent £30 a month and as she is deliberately not working as she's conducting her own unfair dismissal claim she's about to start claiming the Carer's Allowance until the end of June. At the beginning of June she's moving abroad.

    Incidentally the income you make is tax free up to £7,500

    Check it out https://www.gov.uk/rent-room-in-your...-a-room-scheme

    Incidentally the best place to advertise for a lodger is here http://www.spareroom.co.uk

  2. #2
    Senior Member Lighttouch's Avatar
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    Sad to say she's soon to move on. Think I'll have a lodger free zone for a while - perhaps wait until those energy bills start to rise in late October!

  3. #3
    Thought she was going beginning of June. So she is still with you then.

  4. #4
    Senior Member Lighttouch's Avatar
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    There's been lots of twists and turns about the timing of moving on. Certain things didn't happen so she had to wait a little longer.

    She only needs to give a months notice and I'm flexible too.

    God it's raining again - look on the bright side - it's good for the plants!

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    Yeah there's pro and cons. My son is in a house share at the moment, which is proving "interesting". Not too many details as it ain;t my life and walls have ears. He gets on fine with the other tenants. The landlord however is a bit of a nutjob. Seriously, this is the conclusion of most ppl who meet him!
    Long story short: if your letting a room in your property and you own said property. HAVE A CONTRACT. If you are a teneant READ it carefully before you sign it. This protects both parties. If you got house rules - for instance....feeding the cat, no walking round stark naked, emptying the bins...spell them out before said person moves in.

    LT you can also consider Airbnb (though maybe AFTER the building work!)

  6. #6
    Senior Member Lighttouch's Avatar
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    Reddivine you are right - you do need some rules but common sense prevails.

    If you share a landlords house and have use of a bedroom, kitchen, bathroom etc and the landlord lives in for most of the time then the lodger is known as an 'excluded occupier' and as such as few rights.

    The landlord needs to make it clear whether it's a periodic aegree5ment e.g. no set deadline to move out or a fixed term agreement e.g. six or twelve months.

    Live-in landlords don't need to be part of the 'landlord deposit scheme'.

    When notice is given by either the landlord or lodger - reasonable notice has to be given. For example if a lodger pays weekly rent then a weeks enough notice.. If a lodger prefers to pay weekly they should get a weekly rent book.

    If they pay monthly a month's notice is considered reasonable and a rent book isn't needed.

    A live-in landlord doesn't need to issue an agreement but it's wise to do so in case anything goes pear shaped so at least you can refer to something in writing

    Once notice has ended a landlord can ask you to leave and the lodger has no right to live there. If the lodger doesn't move out the locks can be changed and the belongings put outside. The5 landlord can use give verbal notice.

    It's far better to inform lodgers what their rights are before they decide to move in.

    I know that it all sounds very formal but prevention is better than cure if you see what I mean!

    RD -= Airburb - I might look into it once all building work finishes. So I guess you're planning on being my first Airburb house guest! LOL This could be the 'Youreable' accessible 'place to stay' for disabled people wanting to visit Manchester.

  7. #7
    Senior Member Lighttouch's Avatar
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    So Autumn is here just having my path jet washed of algae and sprouting weeds to make it safer to walk on. My place has been spruced up inside and maybe I should be looking for another lodger. I could do with extra cash for the 'wet room fund!'

    Spotted a potential lodger on Spareroom.com

    She popped around on Sunday for a natter and check me and the rooms out. Time flew and she was here a few hours. Very nice lady, chilled out and easy going. She's not in a real rush so will probably find something cheaper - we'll see.

    She's very creative and loves colour and painting. Can you believe I've roped her in to decorate my kitchen as her decorating rates are so reasonable - ideal!

  8. #8
    Lightouch, I am really please that things worked out for you but forgive me if I say that yours was not a common situation. Most lodgers are not regards as disregarded people so a single person may lose their single person's council tax discount. Also for means tested benefits the lodger's rent counts as income (although not all of it).

    But, if you were receiving HB then you would be eligible for an extra bedroom 'allowance' in the HB calculation.

    For Universal Credit the rules are completely different!

    All I am saying is that for anyone considering taking a lodger you must 'do the sums'!!!

  9. #9
    Senior Member Lighttouch's Avatar
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    You're right - do your sums first before taking a lodger. Through the Government's 'Rent a Room' scheme you can earn up to £7,500 tax free income from rent. A single lodger can bring in about £4,500 over a year.

    Although I'm retired I won't get a State Pension for another 7 years and I'm not eligible for any benefits other than DLA and the Single Person's Council Tax Rebate even with a lodger as they are disregarded.

    This works for me as I don't need to hire help around the house - they pay me for the privilege instead. lol

    It's not for everyone - you do need to be easy going and non-territorial to live peacefully.

  10. #10
    Senior Member Lighttouch's Avatar
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    Well, my potential woman lodger paid her deposit the other day. She moves in officially mid October but I'm letting her drop off boxes so the move-in is gradual. At weekend I was introduced to a couple she's friends with who helped to clean out my garage and sort it out. It's never looked so clean or orderly!

    She adds a little extra spark and brings loads of bouncy energy into my life - so bubbly and funny. She's very much a people person.

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