Taking in a lodger: our expert guide

Taking in a lodger isn’t something that should be rushed into. There are many factors to consider.

Of course, you want to find someone you feel comfortable sharing your home with, but there are also legal implications. And how can you configure your home to make sure everyone has their own space while also asserting suitable house rules?

This guide provides a range of expert tips for renting a room in your house, outlining everything you need to know before taking in a lodger.

Taking in a lodger

Taking in a lodger means renting out a room in your house while you’re living there too. The lodger might have their own room, but they will share the living spaces with you, such as the kitchen and bathroom.

The legalities of taking in a lodger

Do you need special permission to take in a lodger?

• If you’re a tenant, you might have a legal right to take in a lodger.
• If you’re a homeowner, you may need your mortgage lender’s permission before taking in a lodger.
• If you live in a shared ownership or leasehold property, you may need the landlord’s agreement first.

Visit the Citizen’s Advice Bureau for more information. They can also advise how taking in a lodger could affect your benefits and tax credits.

What responsibilities do you have as a landlord?

As a landlord, you have a responsibility to make sure your home is in a safe condition for a lodger to live in. This means that:

• Any furniture you provide must comply with fire safety regulations.
• All electrical systems and appliances should be safe to use.
• All gas appliances must be checked annually by a Gas Safe registered engineer.

You should also ensure secure locks are on external doors and windows to make sure you and your lodger feel safe and secure.

Who can you rent out a room in your house to?

You must check a lodger’s immigration status before renting a room to them. Checking a lodger’s right to rent in the UK is a legal requirement for private landlords.

Plus, remember to run background checks as part of the interview process for a potential lodger to ascertain their financial stability and rental history. References from previous landlords are highly recommended.

Financial considerations

How much rent should you charge a lodger?

It’s up to you as the landlord to determine how much rent you charge a lodger, but this should be agreed upon beforehand. It should be outlined in writing as a rental agreement to include:

• The rent amount (and any initial deposit)
• Payment schedule (weekly, monthly, etc)
• How utility bills such as gas, water, and electric will be shared
• Any additional costs such as TV and broadband packages

Do lodgers pay council tax?

If you are living in the property at the same time as your lodger, you (as the property owner) are liable for paying council tax. However, you can include some of this cost – along with a proportion of the household bills – into the rent you charge, as a pre-agreed amount outlined in your rental agreement.

If you’re currently living alone, you’re likely benefitting from the single-person discount on your council tax bill. If taking in a lodger, you’ll need to inform your local council as it could mean you’re no longer entitled to that discount.

Do I need to pay income tax on rental income?

You must pay income tax on the rental income you receive from your lodger unless you’re in the government’s Rent a Room scheme. This entitles you to earn up to £7,500 per year tax-free from letting out furnished accommodation in your home.

Will a lodger affect your insurance?

Before you take in a lodger, you should inform your home contents insurance provider. Failing to do this could mean that your insurance policy is invalid, essentially meaning your belongings are not protected.

Preparing your home for a lodger

Setting house rules

Before opening up your home to a lodger, consider the living environment you want to create and use this as the basis for your house rules.

For example, what are the expectations for shared household chores such as emptying the bins and cleaning? Do you have any specific guidelines for the use of common areas? And do you wish to outline ‘quiet hours’?

We recommend setting the house rules in writing in advance. This avoids ambiguity that could lead to a frustrating and awkward co-habiting arrangement.

Configuring your home for a lodger

The setup of your home will play an important role in the ability to live in harmony with your lodger.

Here are our top tips for configuring your living space to ensure everyone has sufficient space and privacy.

Divide a room

Dividing a room such as an open-plan kitchen diner and lounge can help to create more privacy if you have a lodger living with you.

Should you both be entertaining guests on the same night, room dividers give you the option to keep your own space. You can achieve this using temporary structures, sliding doors, and even curtains. It’s even possible to zone an open-plan living space using colour, decorative features, and furniture placement.

Alternatively, if your living space has previously been opened up, reinstalling internal doors or a partition wall will create separate chill-out zones for you and your lodger.

Create a master suite

If you’re keen to have greater privacy within the rest of your home, consider forgoing your main bedroom (assuming it has the largest proportions) and transforming it into a master suite.

This could provide enough space for an ensuite shower room, compact kitchenette, and seating area for your lodger in one room.

Install built-in wardrobes or fitted wardrobes in your new bedroom to create a space for everything.

Maximise all available space

When your living space is suddenly shared with another person, you’ll benefit from being clever with the available space in your home.

For instance, you might benefit from installing bespoke storage, transforming an awkward stair bulkhead into a usable space, or creating a private reading corner in an unused nook of your home.

Window seats are perfect for additional seating and provide useful extra storage too. But if that’s not an option, take inspiration from how to better use your window sills – yes, really!

And if budget allows, follow the trend for adding a garden room to your outdoor space, or consider converting your garage into a habitable room. These ideas will all help to give you some extra space to retreat to should you feel the need for some peace and quiet from time to time!

Install extra storage

Taking in a lodger normally means taking in a fair few extra belongings too. Where will you store it all? It’s well worth investing in some purpose-built storage to keep everything organised.

Take a look around your home to see if there’s any scope to incorporate some useful extra storage.

Understair storage is a hugely popular solution, as are bespoke shelving units to maximise the potential of alcoves. We have a range of smart storage ideas for the bedroom, as well as the bathroom area.

Get help preparing your home for taking in a lodger

Find a reliable and trusted tradesperson to help get your home ready for your new lodger. Whether you need a new bathroom plumbed in, a fresh lick of paint, built-in storage, or a partition wall, our directory of approved members is here to help. Every one of our members is vetted and checked by us, so you know you’re getting the real deal.

Why not start by finding a carpenter to help you reconfigure your home and storage options? Enter your postcode into the search box below to see who comes highly rated in your area.