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Rent Out A Room

 

The Benefits of Lodgers

Taking in a lodger is a great way to find some good company, share your household’s bills and generate a steady flow of income.

In the current economic climate, renting out a room is becoming an increasingly popular option and presents a tried and tested way of earning money from under-used rooms in your home. Follow the 5 steps below to help ensure that you are successful in making your room for rent.

 


Step 1:  Know the Tax Implications

Under the Government’s Rent a Room scheme, you can earn up to £4,250* through renting a room before paying a penny in tax.

For more information, visit www.gov.uk/rent-room-in-your-home.

* The government will increase the level of Rent-a-Room relief from £4,250 to £7,500 from April 2016. 


Step 2: Preparation

You’ll need to ensure that the bedroom you are offering meets health and safety requirements. Have the relevant fire safety equipment and procedure on display, at least within that room. Home insurance providers will also need to be let in on your venture, as you may need to slightly alter your arrangement with them. Don’t worry though, most home insurance providers will accommodate this new arrangement with minimal hassle and at minimal cost.

Next, prepare the room itself. You might need to do a little decorating or a freshen up. Have an estimate of what you hope to charge in rent and assess how much, or how little, you need to change the room to justify that amount.


Step 3: Advertising

It’s time to start the search for a lodger.  There are always people seeking out a spare room, and thanks to the internet, you can get the news of your available room out there quickly. It is a simple matter of taking photos of the room, explaining what the room offers, and setting the price of rent.

There are a number of fantastic places online to post your advertisement.  www.gumtree.com is free, simple to use and generates a lot of traffic. Another option is  www.spareroom.co.uk, which is a specialist website that connects prospective lodgers with people who have a room to rent.

 

Step 4: Pick a Lodger

Now you have a list of interested candidates, you’ll need to conduct some telephone interviews to cut down your list of potentials. You should then meet with your shortlisted candidates face-to-face.  After all, this stranger will be living in your house, so they should be someone you will get on with. Be clear and up front about any house-rules to avoid any tensions or miss-understandings later on.


Step 5: Contracts

Finally, draw up a contract. This will keep your new-found housemate clear on everything. It should include all the financial elements, bills, payment dates, boundaries and certain services you are willing to provide, such as doing the laundry. This will avoid any debates on money or house keeping that may arise.

 

How much can I expect to earn?

The Table below shows the typical room rental prices in the UK's largest towns and cities, plus each of the London Boroughs.

 

Location Typical Weekly Rent: Lower End Typical Weekly Rent: Middle End Typical Weekly Rent: Higher End
Aberdare £50 £68 £80
Aberdeen £82 £104 £128
Airdrie £76 £83 £89
Antrim £51 £60 £76
Ayr £56 £65 £82
Ballymena £43 £53 £65
Bangor £57 £66 £71
Barking and Dagenham £77 £94 £122
Barnet £102 £116 £125
Barry £61 £69 £93
Bath £71 £83 £99
Belfast £52 £58 £81
Bexley £98 £108 £140
Birmingham £50 £59 £75
Blackburn £55 £71 £79
Blackpool £65 £77 £85
Bolton £62 £73 £88
Bournemouth £74 £91 £113
Bradford £47 £72 £89
Brent (Wembley, Brent Park, Kenton) £80 £107 £138
Bridgend £67 £78 £89
Brighton £82 £92 £102
Bristol £81 £93 £140
Bromley £101 £111 £118
Caerphilly £56 £67 £79
Cambridge / Milton £84 £103 £131
Camden £122 £146 £194
Canterbury £77 £90 £106
Canvey Island £80 £98 £111
Cardiff £58 £72 £86
Carlisle £60 £72 £92
Carrickfergus £70 £80 £90
Castlereagh £49 £54 £75
Chelmsford £71 £94 £113
Chester £79 £89 £100
Chesterfield £70 £89 £99
Cleveland £61 £83 £101
Clydebank £52 £79 £82
Coatbridge £65 £76 £85
Colchester £67 £93 £110
Coleraine £45 £51 £55
Colwyn Bay £65 £74 £86
Coventry £61 £72 £81
Craigavon urban area £44 £61 £71
Crawley £78 £88 £101
Crewe £68 £75 £79
Croydon £102 £111 £117
Cumbernauld £51 £67 £74
Cwmbran £65 £79 £98
Darlington £59 £67 £80
Dartford £96 £103 £116
Derby £64 £79 £91
Derby £60 £71 £86
Derry £44 £60 £70
Doncaster £64 £70 £82
Dudley £74 £80 £87
Dumfries £75 £80 £86
Dumfries £66 £75 £80
Dundee £50 £70 £81
Dunfermline £79 £89 £105
Durham £71 £85 £97
Ealing £100 £115 £170
East Kilbride £67 £79 £89
Eastbourne £78 £93 £103
Edinburgh £70 £80 £109
Enfield £91 £110 £130
Exeter £63 £84 £99
Falkirk £81 £90 £105
Galashiels £55 £62 £72
Glasgow £63 £76 £86
Glenrothes £72 £76 £89
Gloucester £70 £80 £92
Greenock £78 £80 £85
Greenwich £91 £130 £156
Guildford £92 £111 £118
Hackney £87 £103 £122
Halifax £53 £71 £84
Hamilton £66 £76 £89
Hammersmith and Fulham £122 £153 £191
Haringey £98 £122 £156
Harrogate £78 £92 £109
Harrow £88 £104 £125
Havering (Rainham, Romford, Hornchurch) £84 £94 £102
Hemel Hempstead £77 £94 £107
Hereford £78 £87 £98
Hillingdon £78 £101 £143
Hounslow (Brentford) £86 £110 £134
Huddersfield £47 £53 £65
Ilford £87 £96 £123
Inverness £77 £87 £97
Ipswich £60 £81 £100
Irvine £60 £73 £85
Islington £110 £159 £180
Kensington and Chelsea £118 £157 £188
Kilmarnock £53 £73 £85
Kingston upon Hull £65 £75 £82
Kingston upon Thames £85 £112 £145
Kirkcaldy and Dysart £59 £69 £76
Lambeth £116 £146 £177
Lancaster £64 £85 £98
Leeds £61 £70 £74
Leicester £51 £60 £70
Lewisham £93 £110 £148
Lincoln £60 £70 £86
Lisburn £51 £56 £59
Liverpool £70 £76 £90
Livingston £71 £89 £118
Llandudno £65 £78 £91
Llanelli £67 £78 £86
Luton £61 £76 £90
Manchester £58 £70 £81
Medway £77 £83 £92
Merthyr Tydfil £48 £70 £80
Merton (Wimbledon, Mitcham, Morden) £103 £127 £173
Middlesbrough £54 £75 £95
Milton Keynes £80 £90 £109
Motherwell £64 £75 £96
Neath £62 £72 £81
Newcastle upon Tyne £54 £67 £84
Newham £80 £109 £130
Newport £58 £64 £76
Newry £60 £65 £75
Newtownabbey £58 £67 £77
Newtownards £44 £52 £78
Northampton £74 £88 £100
Norwich £62 £82 £98
Nottingham £51 £64 £80
Oldbury/Smethwick £62 £70 £83
Oldham £74 £78 £80
Oxford £87 £107 £136
Paisley £45 £67 £92
Perth £60 £71 £83
Peterborough £73 £85 £97
Plymouth £68 £78 £90
Pontypool £45 £57 £69
Pontypridd £51 £68 £79
Poole £68 £88 £109
Port Talbot £57 £68 £80
Portsmouth £73 £86 £114
Preston £58 £83 £100
Reading £75 £91 £108
Redbridge £77 £96 £127
Redhill £93 £107 £127
Richmond £116 £144 £164
Romford £82 £100 £125
Rotherham £66 £72 £78
Rutherglen £67 £76 £89
Salisbury £82 £95 £118
Sheffield £53 £67 £84
Shrewsbury £76 £92 £101
Slough £58 £74 £95
Southall £88 £100 £118
Southampton £66 £86 £107
Southend-on-Sea £70 £80 £90
Southwark £106 £143 £169
St Albans £92 £110 £145
St Helens £56 £71 £85
Stevenage £78 £90 £117
Stirling £64 £73 £81
Stockport £60 £88 £93
Stoke-on-Trent £55 £64 £70
Sunderland £50 £77 £100
Sutton £92 £113 £166
Sutton Coldfield £73 £85 £115
Swansea £51 £60 £81
Swindon £60 £74 £90
Taunton £66 £84 £112
Telford £77 £88 £106
Tonbridge £89 £95 £110
Torquay £75 £90 £99
Tower Hamlets £123 £143 £214
Truro £85 £97 £113
Twickenham £90 £113 £131
Wakefield £68 £83 £92
Walsall £69 £82 £96
Waltham Forest (Walthamstow) £87 £112 £132
Wandsworth (Putney) £113 £149 £182
Warrington £66 £89 £113
Watford £67 £91 £115
West Bromwich £57 £61 £75
Westminster £139 £186 £235
Wigan £53 £71 £83
Wishaw £63 £76 £88
Woking / Byfleet £98 £111 £140
Wolverhampton £65 £81 £93
Worcester £62 £75 £85
Wrexham £67 £82 £94
York £70 £75 £82 

Message for Editors:

- The values above have been derived from an analysis of three separate national room rental information sources.

- The information was collated during March 2014.


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