06 Dec Rent a Room Scheme enables £7500 of tax-free income for homeowners with a lodger
Are you a homeowner who has a spare room you would like to let? Do you currently let a spare room in your property to a lodger or friend? You may be able to benefit from the government Rent a Room Scheme.
In the current digital age it is easier than ever to find a suitable lodger so letting a spare room in your home can seem an attractive and simple way to earn some extra money and enjoy the company of a new housemate. It is important, however, to ensure that you are not breaking any contract agreements or laws in doing so. This is where Letgate provides a fast and time-saving solution.
If you are a ‘resident landlord’ (someone who lets out part of their property) then you may be interested to know that you can earn up to £7500 per year tax free under the government Rent a Room Scheme. The scheme applies to anyone who lets out a room or an entire floor of their home, provided it is furnished. If you let rooms to more than 2 people then your property may be classed as an HMO (House in Multiple Occupation), which often requires a licence.
Benefits of letting a room:
- Company of a new housemate
- Earn a contribution to your household bills
- Simple contract agreement
- Earn up to £7500 tax-free
Getting started is easy…
Create a Letgate account – the Letgate portal will guide you through the whole process of the Rent a Room Scheme and becoming a landlord. There is a lot to consider in making sure you are protected – Right to Rent checks, Landlord Gas Safety checks, a trusted contract, a reliable inventory – but all this is incredibly straightforward with Letgate. We provide you with the right guidance, checklists and all the tools you need to get started. The process is fast and simple and you can set up a new account in less than an hour.
You will need to make sure that your property is safe and in good repair – again Letgate offers an easy to use checklist that ensures you meet gas, electrical and fire safety standards.
Alert your insurer and mortgage provider – you may require additional cover on your house insurance and permission from your mortgage provider.
Advertise your room well – use websites such as SpareRoom, Easy Room Mate and Gumtree to list your room and include a clear description of what is included in the let.
Manage everything online – once you have set up an account, Letgate allows you to manage everything online from a simple portal. It will even automatically email your lodger about any upcoming or overdue rent, which removes the awkward task of asking in person. Your lodger can also report any faults or issues via their portal by selecting items from the inventory. This keeps all communication clear, concise and in one place so there is no confusion. If you forget to check in regularly then that’s not a problem; Letgate will send you notification by email if anything has changed or is due to expire.
Choosing a package
The Letgate ‘Trial Package’ is perfect for letting a spare room in your house. It comes with 6 months of free access, after when you will pay just £4 per month. It is ideal for those who already have a lodger or those who are nervous about taking the first steps towards renting out a spare room.
Find your new housemate today and allow Letgate to give you complete peace of mind that you are protected and compliant with the regulations.
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