Not all students want to live with groups of friends. Older students, those who prefer a quieter life, and sometimes postgraduates opt to live away from the hustle and bustle of typical university life.

Many students lodge and it could be an answer for you as a homeowner to cope with the cost-of-living crisis. Here are some tips to rent a room to a student lodger.

The benefit of taking in a lodger

The great thing about this method of renting out spare rooms is that you can earn up to £7,500 a year tax-free. That’s around £620 a month that you do not need to declare. However, if your rental income goes above that you will need to declare it as income and pay tax. You will only pay tax on anything you earn over that threshold though, not the full amount.

“Right to Rent” checks

Landlords of HMOs and their agents know full well that they need to check the immigration status of anyone applying for housing. Homeowners may either not be aware they need to do this or believe it doesn’t apply to them. It does apply and if you don’t ensure anyone living with you has a right to remain in the UK, you could be liable for any fines and other punishments allowed within the law.

Written agreement of terms

This will be markedly different from renting out a whole property to a group of students. They naturally need to respect the property and everything within it, and pay rent on time, of course. It’s also important that your live-in lodger respect your boundaries and everyone else who lives there (for example your partner, children, or another lodger). Some things may be decided on a handshake, but if in doubt write it down.

Check with the insurer and the mortgage lender

These are two areas where you might get caught out. Your mortgage agreement may not allow it leading to a change of terms if it is them classed as an HMO, for example although this is rare. The bigger issue is your home contents insurance which could become invalid. If in doubt – let them know. Charges may or may not apply, or you could be sent updated terms depending on how your circumstances have now changed.

Advertise on Pads for Students

That’s right! We’re not just about HMOs for undergraduates. We cater to a range of student types with different needs all over the UK. This includes postgraduates and mature students – the groups more likely to seek lodging rather than living together with a group of friends, especially if they’re new to the area.