Need To Up Your Income? Consider A Lodger

Are you a bit short on cash at the end of the month? Do you have a spare room which is currently a dumping ground? Perhaps there’s a solution whereby you can supplement your salary and have a reason to spring clean that spare room; marigolds at the ready!

When considering ways to increase your income, one option which is becoming increasingly popular is to take in a lodger. It’s not a decision to be made lightly and it can change your lifestyle quite dramatically. However, the advantages may well outweigh the disadvantages. You could find yourself wondering why on earth you haven’t thought about it sooner.

Sanity Comes First

If you are particular about your environment and like everything just so, it may not be the best option for you. If you have a meltdown if the cap is left off the toothpaste , you’re prone to blowing a fuse if you find an empty milk carton in the fridge or the thought of someone else’s hair in the bath leaves you feeling slightly queasy, then do not proceed! However, if you are fairly easy going and do not let the small things in life bother you, a lodger can be a revelation.

Realistically, the disadvantages do need to be considered. Your privacy may well be compromised (no more striding around in your undies!). There is potential for conflict (who ate the last packet of Doritos?!) Plus, getting used to just having another person around your home may be harder than you think. But if you’re open to new ideas and have the room to spare, read on.

The Nitty Gritty

First of all, unless you own your property outright you will need to check with your mortgage holder or landlord to see if you are entitled to have a lodger move in. If so, you will then need to do some quick calculations – calculator at the ready! Firstly, having an additional income may impact on some of your bills, such as council tax, home insurance etc. You will also need to check any reductions in benefits it will affect (if you claim any). Under the Rent A Room scheme, you are entitled to £7,500 extra tax free income for a lodger. So if your additional income would come to that amount or less, it is worth applying. If you need a helping hand, the Money Advice Service offers free impartial guidance to help with the decision making. If the maths adds up and it looks like you could benefit from an extra person in your residence, all systems go.

Sign On The Dotted Line…..

VIP – very important point! Draw up a rental agreement before your lodger moves in. Once you’ve found someone you believe you could share your home with, set out the rules in stone (or on paper!) Ensure you have your document signed and sealed before they start moving in their terrarium and juggling balls! There are various templates available online for a small fee (SpareRoom.co.uk) which hopefully will never see the light of day once signed. However, it’s good to know it’s there for peace of mind!

Pros, Advantages and Positives

Apart from the obvious monetary gains, you may well reap a few more benefits of having another adult living with you. There will always be someone to feed/walk your pets while you’re away. You will gain extra personal safety in your home and additional security when you’re away. Your new lodger can help out with the chores around the house (it might be worth agreeing a rota beforehand). You may even get along like a house on fire, gaining a new buddy into the bargain.

So if you have a room to spare, get researching. You may well find that a lodger could not only provide you with some much needed income, but could be the start of a whole new way of life.