Thinking about taking the plunge to rent out a spare room, here are some of our top tips!

Since the start of the economic slowdown, more and more home owners in the UK have opened their doors to lodgers in the hope that the extra income will help to maintain their mortgage payments and ultimately keep a roof over their heads!

On the flip side of the coin, taking a first step onto the property ladder is now almost impossible for thousands of first-time buyers and so the perfect match has been formed between the cash strapped homeowner and the homeless lodger.

Our Top Ten Tips for renting out your spare room

1) Do your research

The Communities.gov.uk website has a whole host of information available to first time Live-in landlords. There may be financial and tax implications and you could save money. For example, if you’re an owner-occupier, there are tax benefits as you can earn £4,250 tax-free. However, you will have to do a tax self-assessment on your rental income. Here is a handy guide.

2) Check with your lender

As they were at the forefront of the economic crises, most banks have amended their lodger policies to allow for letting out a room however, we would advise that you check with them first to make sure that you will not be in breach of your mortgage terms. Whilst you are at it, contact your home insurers too!

3) Time to de-clutter

If you have a loft in your house, now is the time to use it. Make sure the room that you are letting is clean and tidy and most importantly, clutter free. Box up all your picture frames, posters, clothes and bedding and give the room a fresh lick of paint.

4) Establishing boundaries

It is important to establish boundaries with your Lodger. For example, if you are sharing the kitchen, make sure they know which cupboard is theirs or what part of the fridge they can use. Establish what part of the house is out of bounds and what your expectations are with regards to visitors.

6) Prepare for a telephone interview

You can save valuable time by conducting your first “interview” on the phone before you meet the tenant. First impressions count. If they don’t sound right, then don’t take it forward – use your gut instinct. Have a list of questions prepared before you call the Lodger for example, questions about their employment, family, social life etc and remember to write it all down so you can re-visit your notes after the call has ended.

7) The first meeting

We would always suggest meeting the Lodger in their current digs. This would give you a great idea as to how they live and conduct themselves in their own home. You may even have a chance to meet their current landlord. Unfortunately, this is not always possible and either a meeting at your home or in a social environment will have to do. If you are meeting alone, make sure you tell a friend where you are going.

8) Put it in writing

Ensure a written agreement is signed before your tenant moves in. The biggest cause of disputes is money, so include all the necessary details, including: Deposit/rent amount and payment deadlines Which rooms/facilities the lodger is entitled to use Services you agree to provide Share of household bills Period of agreement Notice period Any other conditions unique to your situation.

9) Manage your expectations

At face value, the Lodger may seem to be the best thing since sliced bread however, no-body is perfect. You need to let your OCD tendencies lay low for a while. You cannot control the Lodgers room habits and they are entitled to enjoy the house as much as you. A good idea is to have a social gathering once in a while to air both of your concerns.

10) Be committed

Renting out a spare room is a big decision to make. You have enjoyed the privacy of your own home for many years and you may experience cold feet at the thought of a stranger living in your house. It may be comforting to know that in the vast majority of live in landlords we speak to have formed very good relationships with their lodgers and some remain good friends even after they have gone their separate ways.

Lettingaproperty.com has recently launched its new service for homeowners looking to find a lodger by advertising a spare room on some of the UK’s biggest property websites. For just £49 inc vat, you can advertise your spare room on Rightmove, PrimeLocation, FindaProperty, Zoopla, Gumtree and more for 30 days!

 

If you are a landlord and would like to know more about this service or any of the other services available please visit lettingaproperty.com or call us on 0844 567 0578.