Top ten tips for renting out your spare room
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Getting onto the property ladder is increasingly difficult for thousands of first-time buyers in the UK, and increasingly, homeowners are renting out a spare room to help meet rising mortgage costs
So if you're looking for a lodger, Sophy Silver, spokesperson for Gumtree.com, shares her top tips to help you find a housemate quickly and safely.
1. Start at the beginning
To get to grips with the financial and tax implications check out the Home and Community pages on www.directgov.co.uk. As boring as this may be, you could save money. For example, if you're an owner-occupier, you don't have to register as a Landlord. There are tax benefits as you can earn £4,250 tax-free. However, you will have to do a tax self-assessment on your rental income.
2. Legal eagle
Letting out a room isn't difficult, which is why so many homeowners are choosing to take in a lodger. But do consider the following:
Check with your mortgage provider if taking in a lodger is within your terms and conditions Let your insurance company know that you're letting a bedroom and ask if you need any additional cover Ensure your home meets safety regulations. You may need to fit smoke alarms and fire extinguishing equipment
3. Changing rooms
Keep the room's decor neutral and tasteful. Even if this goes against your natural instincts it will increase the value of the room and interest a wider range of people. Include photos, or even videos, in your advert so room hunters can picture themselves in it.
4. Better the devil you know?
Establishing boundaries with friends can be trickier than with a stranger. You might be happy for a mate to borrow a top for a night out once in a while, but it's hard to tell her your wardrobe isn't part of the deal just because you live together.
5. Pet peeves
Give as much detail as you can in your advert. If you really can't stand reality TV, or hate fitness enthusiasts, it might be more important to mention this in your ad than to simply ask for a 'non-smoking professional'.
6. A likely candidate
Save time by conducting initial interviews over the telephone at first to draw up a shortlist of prospective tenants. Once you've narrowed the list down, arrange face-to-face interviews and invite a friend to interview with you if you're worried about strangers coming to your house.
7. Virtual reality
Employers are increasingly looking up job applicants on social networking sites such as MySpace or Facebook, and you can do the same with prospective lodgers. People can portray themselves very differently online, but if you're worried a potential lodger could be a party animal, this may give you a few clues.
8. Sign on the dotted line
Draw up a written agreement before your tenant moves in. The biggest cause of disputes is money, so include all the necessary details, including:
Deposit/rent amount and payment deadlines Which rooms/facilities the lodger is entitled to use Services you agree to provide Share of household bills Period of agreement Notice period Any other conditions unique to your situation. Every flat share is different, and if your Desperate Housewives box-set isn't part of the deal, it's best to make this clear upfront before it becomes an issue.
9. Keep the peace
You can't control how messy your tenant is in their own space, and once they move in, it's their home as much as yours. Catch up with a glass of wine once in a while to discuss any problems or concerns either of you might have before they escalate.
10. Sixth sense
Finally, trust your instincts. If a potential tenant seems ideal, but something just doesn't feel right, wait until you find someone you're totally comfortable with. After all, it is still your home.
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