In recent years, the Government’s Rent a Room scheme has become more popular than ever before. The scheme, which lets landlords earn up to £4,250 a year, can provide a tax-free benefit for private landlords looking to let out a single room or an entire floor within their property.
We’ve noticed a trend towards resident landlords who continue to live in their property while letting a room, or several rooms, to a tenant or lodger. With times being as they are, money is often tight and many tenants are beginning to see the benefit of taking on an inclusive rent package such as this, which more often than not will include heating, electricity and other amenities such as Wi-Fi and TV licence.
Here at The Letting People we’ve been approached by several home-owners looking to take on a tenant with most looking to put together an inclusive package for lodgers, designed to include the cost of gas, electric, water, and other items. It seems that both landlords and tenants get the best from this alternative living arrangement. Landlords are content in the fact that they can put a spare room to work and gain tax free income, while tenants enjoy having their landlord close by to deal with any household problems which may arise.
If you are looking to become a resident landlord, you need to consider several factors before taking on a tenant. And it’s important to take into account your needs, as well as theirs. As a live-in landlord you’ll be living in close proximity, so compatibility is essential.
It’s also a good idea to think about the communal provisions which will need to be in place. As well as utility bills, you’ll need to think about laundry facilities, parking, use of an additional television or even rules about occasional guests – for both yourself and your tenant.
We offer our landlords full referencing of their prospective tenant using an insurance company, and preparation of a specialist tenancy agreement. For more information about becoming a resident landlord, talk to your local branch of The Letting People.