Rent A Room:
Over
the last few weeks I have had numerous requests for more information on
renting a room. After thinking that this would be quite an easy
subject to cover I have actually managed to find very little information
on the matter. I was asked what would happen if the tenant refused
to leave? So, below is some information that I have managed to put
together.
The Government does
actually have a Rent-a-Room scheme. This is an ideal way to earn
extra income from your spare room and what’s more is that the income as
long as it does not exceed £4,250 per annum is tax free. I
suggest contacting your local Inland Revenue Office and they should be
able to provide you with more literature. The room must be in your
permanent place of abode.
The lodger has no rights
over the property at all. The law looks upon them as paying
guests.
You should still
reference the “Lodger” prior to letting a room to them.
You must be sure that they can afford to pay the rent, but perhaps more
importantly in this instance you need to make sure they are of the right
calibre. The last thing you want is to see all your belongings
going away on the back of a lorry.
It is advisable to set
out the terms of the letting. This can be done in the form of a
letter and you must set out the deposit amount and under what terms you
are entitled to make deductions, whether the rent includes bills and
what the notice period will be. I believe that two weeks is
usually enough.
Furthermore, check that
your mortgage company allows you to take in lodgers and consult your
insurance policy.
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Legal update: 16 October 2026
The Rent a Room tax threshold in this older article is no longer correct. Under the current scheme, qualifying furnished accommodation in the landlord’s main home may generate up to £7,500 a year tax-free, or £3,750 if the income is shared. Lodger rights also depend on the living arrangements.
Read the current Rent a Room rules. Update by Simon Burrage.
