Renting out a room whilst still living in my house.?

Question

I am looking to rent a room out to help me pay a crippling mortgage my ex has left me with. Can I find a template anywhere which can give me guidelines as to the terms and conditions for the lodger. I just know that I will leave out a heap of stuff that I will later regret. Another question would be, what should I charge? (a double bedroom in a semi in dunstable) thanks to any response.

Answer 1

You do need to be careful about letting, and clear about the terms. I would suggest you use an Assured Shorthold letting agreement - see this web site for advice on a template (they charge about £35) - http://www.clickdocs.co.uk/tenancy-agreement-england.htm - as regards the agreement for a room or rooms as opposed to a whole house/dwelling let.
I would suggest you contact your local CAB (Citizens Advice Bureau) who will be able to advise you. Some CABx have free legal advisers as well - often local solicitors doing pro bono work - and you might be able to ask one of them.
There is government advice available too - from here - http://www.barking-dagenham.gov.uk/6-living/housing/private-sector/pdf/letting-rooms.pdf - which may help you.
I would strongly suggest that you do use a proper written legal agreement.
You could also approach the solicitor who acted for you when you bought your house, or most recently.
Your local Council's Environmental Health Department may also have a Local Landlord's Forum which can be a source of free and often good advice.
As to rent levels - again the CAB will have info about local rent levels, but I would also suggest you contact your local Council's Benefits Section for advice on current rent thresholds that they work to. You can get contact info about your council here - http://www.southbeds.gov.uk/contact/index.html - but I'm afraid their web site is rather poor.
You might also like to think about contacting the local University - Luton Uni is now University of Bedfordshire - try this page for info about accommodation including their on-campus costs - http://www.beds.ac.uk/studentlife/accommodation/luton - that could be a useful reference charge level for you to work to.
Also - you need to think about where your tenants will come from - consider the Uni as there is an organisation there you can turn to if you have problems with the tenant. They have an Accommodation Section. They usually also need local landlords as there's not enough Uni accommodation for all their students. The fact that students are not a long term tenant can be an advantage (no risk of a long term occupant you might not get on with) and a disavantage (you have to find a new tenant every few months).

So to summarise the key points:
Contact CAB for advice on both letting agreement and rent level
Contact the solicitor who acted for you last
Look to set up an Assured Shorthold let (good protection for you as a landlord)
Ask local Councl Benefits Section about local rent levels (bear in mind these will be among the lowest rents around - you could charge more)
Think about where your tenants will come from

Hope this may help.

Answer 2

2

Answer 3

Before renting, get a real lock on your room or where ever you keep your computer, valuables, financial statements etc. Once you have that, just spell out when the rent is due and consequences of late payments. What the routine cleaning requirements are and when the quiet time is. (like maybe you work a day shift so night parties would be limited) Rates are so relevant to the area - look at current listings for room rentals in your area for guidance.

Answer 4

Hi >
I am not far away from Dunstable, so ...
It is always worth getting an agent involved. They may well be looking at up to a max. of 10%, to cover payments, or lack of, any damages or repairs needed.
I would guess in this neck of the woods, and given rough property detail, perhaps £55-65 per week is not unreasonable.
Possibly much more, if you offer full use of kitchen facilities, garden, laundry stuff, etc. Then you want circa £70-90 per week

Check with a professional agent, to be honest, as I am guessing a bit.

Bob.

Answer 5

Hello - I have rented rooms in my townhouse for over 10 years.

As for how much, don't take anyone's advice alone. Check the big and small (Gazette) papers for rooms for rent to get and idea of the going rate and how to word your ad. That is the best way.

When talking about guidelines - that is the lease, there is not enough space here. Yahoo search leases is one way. Local Government is another resource (I got my lease from the local government and added extras for myself). Buy a book on renting.

Lastly, my main advice that I can give in a short answer is to ALWAYS require a security deposit AND first months rent BEFORE you sign the lease and give them the key. It is in this order.
1. Confirm they have the money for both the Security Deposit and First months rent so you don't waste your time.
2. Read the lease with them
3. Before signing and filling out, get both the Sec. Dep and first months Rent! I would suggest you require cash, money order or cashier check so you don't get stuck with a rubber check!
4. Sign the lease in duplicate. They get one copy and you get the other.
5. Lastly - you give them the key(s)

Oh - it is a good idea on the phone, before they come to look at the place, to tell them you require both the Sec. deposit and first months rent before they move in - this way you don't waste your time.

Also - don't rent to friends or family it will destroy your relationships or at least hurt it most of the time.

OK - the reason you require both Sec. Dep. and First Months Rent is that you will often here a number of excuses that they can get you the money or the rest of the money at this or that date. If they don't have enough money in the bank to pay you both your rent and security deposit, it means they have no reserve money, which means they live at the end of there ability to earn money. This means if they eat out too much or the cell phone runs over or they decide they want a vacation which they can not afford, guess who doesn't get paid!

Requiring the Sec Dep and First Months rent helps screen out the bottom scum that probably can't afford your place. Sorry to be tough on folks - but I have had too many people tell me bad stories. I have always been paid for 10 years except recently one person who was sooo nice - screwed me out of 6 months rent. But only time it ever happened to me. But he was sick with a bad illness, so it was a little different. But I bet he is move from place to place making promises and leaving without paying!

If they don't pay you - you can't just kick them out, it requires court and 3 to 6 months to get them out. And guess what? Do you think when they move, they tell you where they move to? The courts won't either and you will likely never see your money!

I suggest your lease say it is rented to only one person. Otherwise all kinds of folks move in and run up your utilities and wear on your place is greater - remember, renters general don't really care about your place, so the more, the more damage you will see.

Finally - Regardless of you morals, I HIGHLY suggest that in addition to the one person cause you say that they can have guest(s) sleep over no more then 1, 2 or 3 weeks for the whole year cumulatively. I hate to generalize, but those that like to have friends sleep over a lot, generally are the same ones that will later leave you without warning while staying at a friends house until they can find another place to stay WITHOUT paying you. They take turns.

If you don't have a good source for a lease - Try The Montgomery County Tenants and Landlords Assocation. They have a good lease which I believe is fair to renters and landlords alike. You can always change the stuff that you need too.

Good Luck

Answer 6

go to a stationary shop,they sell decent contracts for peoplewanting to rent a room in their private house. Check the local press to get an idea of prices. Always get a reference from a previous landlord, and contact im if you can, always require a deposit, and ensure they pay 1 month in advance. I have been lucky and go by the ethic that if I am fair a tennant will be fair back, it is not necessarily true, but has worked out for me. good luck

Answer 7

Not sure how it works with a lodger, but if you were renting a property out, an "assured shorthold tenancy agreement" is what you want. I assume it's similar for a lodger.

Answer 8

I don't really know that answer to your question, but I just wanted to tell you that I totally know what you're going through as my roomie moved out and now I'm stuck with a $1400 a month bill. I'm doing my best to pull through though. I hope it all works out for you.

Answer 9

Rent-To-Own Homes - http://RentToOwnHome.uzaev.com/?ZpXk

Answer 10

i think if you rent the room out at more than £4250 for the year (or half that if you're married) then you have to pay tax on the income... that's all i can advise you on... go on hm revenue and customs website to find out more...