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

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