Letting a room - What do I need to do/Who needs to know?
Discussion
Hi all,
I have just moved into my first property, a 2 bed apartment.
I am thinking of renting out the 2nd bedroom...if I do, who needs to know?
My mortgage is with HSBC, (short of looking myself..) is there likely to be anything in the mortgage agreement to say that I can't let a room? Do I need to inform them, and what if they say it isn't on?
Is there some sort of deposit scheme now, where I have put the deposit somewhere?
Anyone else who would want to know? Council would so that they can add another 25% to my council tax bill...
Would I need to get any other sort of insurance policy?
Thanks!
I have just moved into my first property, a 2 bed apartment.
I am thinking of renting out the 2nd bedroom...if I do, who needs to know?
My mortgage is with HSBC, (short of looking myself..) is there likely to be anything in the mortgage agreement to say that I can't let a room? Do I need to inform them, and what if they say it isn't on?
Is there some sort of deposit scheme now, where I have put the deposit somewhere?
Anyone else who would want to know? Council would so that they can add another 25% to my council tax bill...
Would I need to get any other sort of insurance policy?
Thanks!
Rent-a-room scheme.
RaR shouldn't affect your mortgage. You'll lose your single occupancy discount on your Council Tax. Don't know what the deposit schemes requirements for RaR are as effectively you're taking in a lodger not a tenant. Other bills you can also share.
Unless you're after silly money in which case you'll need to sort out tax liabilities too.
RaR shouldn't affect your mortgage. You'll lose your single occupancy discount on your Council Tax. Don't know what the deposit schemes requirements for RaR are as effectively you're taking in a lodger not a tenant. Other bills you can also share.
Unless you're after silly money in which case you'll need to sort out tax liabilities too.
Edited by mk1fan on Tuesday 4th August 12:33
mk1fan said:
Rent-a-room scheme.
RaR shouldn't affect your mortgage. You'll lose your single occupancy discount on your Council Tax. Don't know what the deposit schemes requirements for RaR are as effectively you're taking in a lodger not a tenant. Other bills you can also share.
Unless you're after silly money in which case you'll need to sort out tax liabilities too.
Excellent, thanks! I think the limit allows something like £354 a month rent (£4250 p.a.), which I would be more than happy with. I assume this also includes all bills?RaR shouldn't affect your mortgage. You'll lose your single occupancy discount on your Council Tax. Don't know what the deposit schemes requirements for RaR are as effectively you're taking in a lodger not a tenant. Other bills you can also share.
Unless you're after silly money in which case you'll need to sort out tax liabilities too.
Edited by mk1fan on Tuesday 4th August 12:33
I can do without a lodger financially, so I don't need to charge anything ridiculous...
...just enough to keep topping up the TVR fund
, and have someone else aroundI'll call HSBC to double check they aren't going to get upset if they find out later though!
On the Tenancy Deposit Protection scheme I am not sure whether this applies to having a live in lodger or not, I assume it does...do I then count as the 'Landlord'?
http://www.direct.gov.uk/en/TenancyDeposit/index.h...
Check out here as well as direct.gov and get the guide.
http://www.rentaroom.co.uk/
When you speak to the HSBC mention that it's a lodger you're looking to get in and not a tenant.
You'll be a Landlord with either a tenant or a lodger so always bear in mind that it's a business first and a friendship (if any) second whilst they're in your home.
http://www.rentaroom.co.uk/
When you speak to the HSBC mention that it's a lodger you're looking to get in and not a tenant.
You'll be a Landlord with either a tenant or a lodger so always bear in mind that it's a business first and a friendship (if any) second whilst they're in your home.
Edited by mk1fan on Tuesday 4th August 13:53
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