Someone who rents out a room of their own home to a lodger. The property must be your only principle home throughout the duration of the letting.
Being a live-in-landlord:
- Property owners don’t need permission to rent out to a lodger
- Mortgage lender will need to be consulted if you have an outstanding mortgage
- Long-term leaseholder will consult terms of current lease
- Council tenants can sublet parts of the property, only with the council’s permission
- Private tenants can usually not sublet unless contract states it
- Terms of licence should be agreed with the lodger and written as well as signed by both parties, length of contract, notice period and when rent is due should be included
Things to note:
- If you previously lived alone and used the 25% discount of council tax, you will now have to pay the full rate
- If rental income over the 12 month period is under £7,500, this is tax-free as part of the government’s rent a room scheme. Anything over, you’ll have to file a Self Assessment tax return but tax bill can be reduced by claiming property expenses
- Those who claim rent a room allowances can’t claim back expenses
- If the lodger claims housing benefits, and they are in financial arrears for a period of time, the live-in landlord may request payment from the local authority
