Advice for Resident Landlords

Advice for Resident Landlords

This page is for resident landlords who rent out rooms in their home, or anyone looking to rent out a room in their home.

(If you are a non resident landlord, please visit the main Landlord section.)

This page will look at the following:

  • Am I allowed to rent out a room?
  • Will taking in a lodger affect my income?
  • Being a landlord

 

Am I allowed to rent out a room?

If you rent your home or have a mortgage, you must seek permission from your landlord/mortgage lender before taking in a lodger (please refer to your tenancy/mortgage agreement).

NB: Your insurance premium could be increased if you rent out a room. It is advisable to check with your insurer before taking in a lodger.

Will taking in a lodger affect my income?

Any rent you receive is classed as a form of income and could affect the level of income tax you pay, along with any income related benefits that you receive. NB: If you receive an income related benefit and take in a lodger, you should immediately notify your benefit provider.

Income Tax
The Government offers a 'Rent a Room' scheme that provides tax incentives if you rent out a room in your home e.g. if you rent out a furnished room you can recieve a non taxable income of up to £4,250 per year, equating to £81.73 per week. For more information about the 'Rent a Room' scheme, please visit Gov UK.

Being a Landlord

You will have responsibilities as a landlord when renting out a room in your home.

For more information on rights and responsibilities, please see the Resident Landlords Guide.

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