Rental Charge..?

[Dee Woffaz]

I have been approached by a friend to see if i will rent out my spare room to his friends daughter. She has recently qualified as a solicitor & requires accomodation in London. I have a double room & she will share a bathroom with me. i live on Wood Vale so whilst transport isnt on the door step it is easy to get to both Forest Hill & the Dulwich stations. Having never lived in rented accomodation i have no idea what i should ask her for rent. Does anyone else have a lodger & how do you find it? what does your lodger expect to be in with the rent etc. Any tips would be appreciated.

Thanks

[Saffron]

Is there a limit to the amount you can charge for a lodger before you have to declare it for tax purposes? I seem to remember something about this but don't recall the details.

[red devil]

Lots of info on the web...

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

[woodrot]

rent a room allowance is like ?5K a year and not taxed bludz

make sure you are up to date with the insurance aspects,?s this catches people out soemtimes

[LondonMix]

Depends on size of the room and if certain bills are included in the price of rent. Your best bet for current rates is to look on gumtree or on the property section of the EDF so you can see what others are offering for a single room in the area right now.

Good luck!

[ratty]

mates rates though - ?500 pcm incl

[Saffron]

red devil Wrote:

-------------------------------------------------------

> Lots of info on the web...

> http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Ta

> xes/TaxOnPropertyAndRentalIncome/DG_4017804

Yes, that's what I was thinking of...

from the link:

You can receive up to ?4,250 a year tax-free (?2,125 if letting jointly) by letting furnished rooms in your home. This is known as the Rent a Room scheme.

So that works out to just under 400 pcm, but under this scheme you can't claim back an letting-related expenses.

You have to weigh that up agaist whether you'd be better off declaring the rent for tax purposes, then claiming back expenses. But if you don't really have any related expenses, then the maybe the Rent a Room scheme is for you.

[the-e-dealer]

?400

[Dee Woffaz]

Thanks for your advice & tips i am thinking ?400 ish. i looked on Gumtree, some of those rooms cost more than my mortgage!!!

[the-e-dealer]

?450 ensuite

[Gidget]

Saw something that said Moneybox Radio 4 did a programme about renting this week - should be available on iplayer, listen again, whatever it's called now.