Spare room in a private home
The renting of a spare room in a private home requires the signing of an agreement if the tenancy is over three years, but it is recommended that one is made. The government advise that it includes details such as: length of tenancy, rent price, notice to end the tenancy and any services to be provided.
In the UK, it is advised that you inform your mortgage lender if you decide to rent out a room. Roomlala advises that you carry out an inventory upon the tenant’s arrival and to annex it to the lease.
The duration of season rentals must not exceed 90 consecutive days.
In general, the landlord is insured in the case of the occasional renting of a room thanks to their landlord or holiday lettings insurance as long as the “holiday” section is included. If this is not the case, it is the either the landlord’s responsibility to subscribe to this, or the tenant’s responsibility to be insured for the duration of their stay.
Under the Rent a Room Scheme, landlord’s can earn up to £7,500 per year tax-free from letting out furnished accommodation in their home. This is halved if the income is shared with someone else. If you earn more than the threshold (£7,500), you will have to complete a tax return. You can choose not to opt into the scheme and instead record your income and expenses on the property pages of your tax return.
You can opt into the scheme at any time if:
- You are a resident landlord, whether or not you own your home
- You run a bed and breakfast of a guest house
You can’t use the scheme for homes converted into separate flats.
Right to Rent checks
Landlords in England are obliged to check that any tenants who rent from you are legally allowed to live in the UK. If you are subletting your apartment, it is your responsibility to perform these checks. This only applies if the property is considered the tenant’s main residence: for example, holiday rentals and B&Bs would not require checks. All new tenants should be checked. To find out more, consult the Citizens Advice Bureau and dedicated government pages here. The Home Office provides a guide to checking documents here.