Over the years, an increasing number of homeowners have been taking in a lodger to help supplement their income and this may well be going to continue for the foreseeable future providing competition for the traditional landlord. In fact, some time ago LV carried out some research that showed that the number of people that owned their own homes and decided to rent out a room in the property to a lodger had risen from 1.4% back in 2009 to about 2.7% in 2014.
This rising trend may well continue as the Government has agreed that someone can rent out a room in their home and not pay any tax on the income this generates up to an income of £7,500 per annum from April this year. At the moment the figure is £4,250 per annum so the new figure is a considerable increase.
Many homeowners will have taken in a lodger in recent years to help them supplement their income during the economic problems that this country went through and, for many people, still are. If you are thinking of having a live-in lodger then there are some things that need to be considered.
For instance, rules will need to be laid down such as at what time of the day can the lodger use the bathroom assuming that he or she does not have an en-suite. Can they use the kitchen at the same time as the owners and are they ever allowed to use the lounge? Can the lodger use the wireless Internet connection in the home or must they provide their own? Where can they park their car overnight? Are they allowed to bring a friend around and is that person allowed to spend the night?
None of these things are an issue in a normal landlord and tenant situation as the landlord is not living in the same property.
It is estimated that a room can be rented out to a live-in lodger in the UK for, on average, in the region of £250 per month. This is considerably less that a tenant would usually have to pay a landlord if renting out say a one-bedroomed flat where the landlord does not reside in it along with the tenant.