5 Things to Consider When Renting Out a Spare Room

A spare room in your house can be turned into a source of income with a bit of knowledge and planning. Maybe your kids have all grown up and a room is sitting there vacant, or you no longer have use for a home office, the potential is there so why not use it? Before you embark on this journey, there are some factors to consider. Here are the top five things to think about before you open up your home to a lodger.

How to Find a Tenant

First on the list is what the process of finding a tenant looks like. The preferred method seems to be using a registered company to advertise the space like roomclub.com. These sites help you vet potential candidates, be upfront about your rates and expectations, and set clear boundaries for what the contract will look like. A platform where you can make an application form, check references and have bookings organised by a helpful calendar is an excellent tool to have you on your side.

What Your Boundaries Are

Which areas of your home will be off limits? There is an expectation when renting out a room in a house or a flat,  that common areas have to be accessible. If the room has an en-suite there is less need to allow access to the main bathroom, but if it isn’t, this has to be factored in. Kitchen access is also essential, and while you are under no obligation to provide a ‘living area’, lots of tenants expect it.

The Room Rate

How much you are able to charge for the room is dictated by numerous factors.

• The location. A room in a highbrow London suburb will be listed at a higher price than an inner-city room in the North of England, for example.
• The size of the room. A single room has a different price expectation to a double or king.
• Ensuite/No Ensuite. An ensuite room will cost more than one without.
• Bills included/Not Included. If the tenant’s contribution to the bills is reflected in the room rate, this needs to be labelled clearly as the price will be higher. Usually, with a room to rent instead of a whole property, bills are factored into the listing rate. Council tax may increase, for instance, if you take on a lodger.

Deposit

The deposit stipulation is a sensible move for any landlord, to protect from potential damages caused by the tenant. Decide whether you will set one or not, but it is arguably better to have one.

How to Stay Safe

Staying safe is the top priority. Vet candidates thoroughly and try to listen to your head as well as your gut. Check and double check references from previous landlords and verify their legitimacy, ask for a character reference also. There is no such thing as being too cautious when it comes to allowing someone to rent a room in your home, given you will be essentially roommates.

When renting out a spare room, it may feel like an endless to-do list, but all the tasks are worth it to make the process run smoothly and securely.