Thorough checks needed before having a lodger

Homeowners looking to boost their income by taking in a lodger need to carry out careful checks beforehand.

In an article for the Telegraph newspaper, personal finance expert Rosie Murray-West claims flat-sharing has become a popular way to ease financial pressures during the economic downturn.

She points out that homeowners can earn up to £4,250 a year tax-free by renting out a spare room under the government's Rent a Room scheme.

After checking with mortgage and home insurance providers to make sure they are allowed to take in a lodger, those still interested in the arrangement also need to check the suitability of potential candidates.

Once they are sure they have chosen the right person, they should draw up a lodger agreement to provide extra protection, Ms Murray-West suggests.

This will set out what is expected of both you and your lodger, saving potential disagreements and legal disputes later on.

Posted by Christopher Evans


Published on: August 25, 2010

Did you like this article? Share it!

Tenant Checking Service

Tenanct checking service advert

Check out your tenant’s salary, credit history, CCJs and much, much more, from just £26.95.

Read More