Renting a room - any advice

highgiant1985

I recently purchased my first house and I'm now considering renting a room out in my house to help rebuild my savings a bit.

I've already read the advice from:
http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html

I'm just wondering if anyone else has any advice from their own experiences?

Gumbo

Clearly outline space and house rules at the start.

TheBully

Il follow this post, in same situation. Thought of renting out a room in my home kills me though, I'm gonna hold out and see if I can get through the first year without it though. We can manage repayments at the moment, and we rented in shared accom for the last few years which was torture, I don't know if I could go back to that.

Denny_Crane

Wonderful advice given to me which I welcome the opportunity to pass on:

Keep the money you make aside, don't use it for day to day expenses. Have a lodger as a 'nice to have' and not a 'must have'. You'll resent having to share your space a lot less if you've a nice holiday, bank balance, car or home improvement to show for it.

Remember that the income still needs to be declared, although it is tax free upto 14K regardless of other income.

JillyQ

Hi op I have done this on and off for about 14 years. It can work very well. First thing I would say is have listed of house rules, eg how often they can have Someone stay over, when and how bills are to be paid.

Second thing is ensure that the person understands that they are a licencee and not a tenant and as such are not protected under any tenancy legalisation

JillyQ

JillyQ wrote: »

Second thing is ensure that the person understands that they are a licencee and not a tenant and as such are not protected under any tenancy legalisation

Hmm I'd be slow to go making a point out of this as it may put people off who don't understand the difference and them not knowing and you not telling them makes no difference in the event of you wanting them gone, they still have no rights.

_Jamie_

Mckenzie Wrong Backstroke wrote: »

Hmm I'd be slow to go making a point out of this as it may put people off who don't understand the difference and them not knowing and you not telling them makes no difference in the event of you wanting them gone, they still have no rights.

Both parties need to know so that the licensee can benefit from the informality of the arrangement too. The licensee having "no rights" doesn't come at no cost to the landlord and the licensee has a right to know what the benefits of the situation are for them too.

_Jamie_

_Jamie_ wrote: »

Both parties need to know so that the licensee can benefit from the informality of the arrangement too. The licensee having "no rights" doesn't come at no cost to the landlord and the licensee has a right to know what the benefits of the situation are for them too.

Its up to the licensee to understand their rights or lack of them. There is no obligation on the person renting them a room to spell things out for them. If they believe they are a tenant it doesn't make them one.

_Jamie_

Mckenzie Wrong Backstroke wrote: »

Its up to the licensee to understand their rights or lack of them. There is no obligation on the person renting them a room to spell things out for them. If they believe they are a tenant it doesn't make them one.

So why not tell them so? Kinda seems like you want them to think they are a tenant for the few instances that might benefit you, for example them not realising they only have to give minimal notice to leave. Or that you realise the best people will be put off by the arrangement. Wanting the best people without wanting any obligations towards them. Deceptive.

newacc2015

OP the idea of a lodger might not seem amazing. But if you have a variable mortgage and off the lodgers rent against it. With interest making up most of mortgage repayment at the start, a lodger for a year or two could result in you paying off your mortgage years earlier. It could be used to free up money to set up a decent pension for the future.

With the effect of compounding small payments/pension contributions can be massive in a few years

Exclamation Marc

_Jamie_ wrote: »

So why not tell them so? Kinda seems like you want them to think they are a tenant for the few instances that might benefit you, for example them not realising they only have to give minimal notice to leave. Or that you realise the best people will be put off by the arrangement. Wanting the best people without wanting any obligations towards them. Deceptive.

It's not deceptive as you're not leading them to believe anything once youve said you're the landlord. And leading a conversation with "just so know, you've no rights" implies that you may screw them over and could scare them off. I've had a good few licensees live with me and I've never had to tell them they've little or no rights. I've just politely provided them very basic house rules noting the notice period and crucial rules etc and have had no issues on that front.

Just give the licensee the rules of the house ensuring it sets out the standard notice period and leave it at that. It's not the OPs job to be giving them legal advice.

A quick Google of "living with a landlord" and the potential renter will see their position.

OP, just have a good think of some of the important rules that you think you need followed such as guests staying over, cleaning, etc. Interview a good group of people. I rushed into a licensee once as she seemed very nice but I had to get rid of her four months later as she was a disaster and then I found a great guy.

_Jamie_

That's grand, as long as the licensee is informed of the basics, such as notice period. You seem to have given your licensees a perfectly sufficient amount of information.