Are you looking for a Fantastic way to earn extra income ?? Well one of the best and painless ways is to avail of the UK Governments Rent a Room Scheme. Let out a room in your home and you can earn £7,500 Tax Free!! Read on for all the information you require or go to Getdigs.co.uk.
Advantages for Homeowners in Renting Out a Room
With the rising cost of living and housing shortages, homeowners in the UK are increasingly exploring creative ways to optimize their resources. One practical and beneficial approach is letting out a room in your home for part of the working week – such as Monday to Friday or Sunday to Thursday or to be honest whatever days suit you. This arrangement offers multiple advantages, from financial gains to social and environmental benefits. Additionally, the UK government’s Rent a Room Scheme provides a substantial incentive, allowing homeowners to earn up to €7,500 tax-free annually. Getdigs.co.uk specializes in fractional room renting – let’s delve into these advantages in more detail.
Financial Benefits
One of the most compelling reasons to rent out a room is the additional income it generates. For many homeowners, this supplementary income can significantly ease financial pressures. Whether it’s to pay off a mortgage, cover household expenses, or save for future investments, the extra cash flow can make a big difference.
Under the UK Government’s Rent a Room Scheme, homeowners can earn up to €7,500 per year tax-free – yes Tax Free (you don’t hear that phrase too often!). This scheme is a straightforward way to boost your income without worrying about the tax implications. It’s an attractive option for those looking to maximize their home’s potential while maintaining financial stability.
Flexible Living Arrangements
Renting a room on a Monday to Friday basis provides a flexible living arrangement that doesn’t interfere too much with the homeowner’s lifestyle. Your Lodger will typically vacate the premises over the weekend, giving you your home to yourself during your personal time. This balance can be ideal for those who value their privacy and prefer not to have a full-time lodger.
Moreover, this setup appeals to Lodgers who are professionals or students and work / study in the city during the week but return to their primary residence elsewhere in the UK for the weekend. It’s a win-win situation: Lodgers get a convenient place to stay near their workplace or college at a reduced cost, and homeowners benefit from a less intrusive Lodger.
Social and Community Benefits
Having a Lodger can also bring social benefits. It provides an opportunity to meet new people and form new friendships. For many, this social interaction can enhance their sense of community and reduce feelings of isolation, especially for those who live alone.
What is the UK Rent a Room Scheme?
Under the UK Government’s Rent A Room scheme you can rent out a spare room in your house, Tax Free, if the income does not exceed £7,500 per annum. This extra income could supplement your mortgage repayments, or you could go on that long overdue holiday! Interestingly enough you don’t even need to own the property to qualify you can be the tenant, but if you rent you’ll need your landlord’s permission to sub-let.
For more information visit the HS223 Rent a Room Scheme .Check out our Homeowners FAQs to get your queries on this subject answered.
As much as I hate saying the ‘R’ word – that is exactly where the UK is now – in Recession. Here at Getdigs.co.uk we notice more and more households are considering renting out a room in their own home to make ends meet. We recently conducted a survey which indicated that 18% of all Homeowners would consider renting out a room in their own home, depending on various circumstances. All of these Homeowners said the Monday to Friday rental option would be one they would choose. Strangely; 38% of Homeowners surveyed did not even know of the Governments Rent-a-Room scheme!
The main reason homeowners told Getdigs.co.uk that they would be interested in renting out a room was to assist in the paying of monthly mortgage payments, general utility bills (we all know these continue to increase in a blink of the eye) and grocery shopping. In most cases it was viewed as an interim solution until the economy improved.
Historically our Monday to Friday Accommodation focus really suits Homeowners as the Lodgers interested in this rental option are either quite, studious students or long commuting professionals.
If you are going down the route of the Rent-a-Room scheme it is worth considering these few tips.
What is involved?
- The big carrot is that you can earn up to €7,500 Tax Free. Yes, Tax Free! This really is a fantastic incentive.
- You will now be sharing your home with another person. Ensure you do your homework. Getdigs.co.uk has embedded software that allows the Homeowner to ‘interview’ the lodger online via our SMS messaging system without the Lodger seeing any personal details about the homeowner (e.g. name, phone number, email, even the exact address is not disclosed) this allows the homeowner to get a feel for what the lodger is like. When you choose a Lodger put ground rules in place i.e. a contract. For more ideas on this look at our ‘Tips’ page.
Getdigs.co.uk
Prepare your Home
- In recessionary times Lodgers tend to be choosier as there are more rooms available on the market. It’s important to ensure your home looks well for potential Lodgers – ensure the pictures you upload to market your home in the best possible way. Photographs should be good quality and the rooms should be neat and tidy. First impressions are important. A potential Lodger wants to see a clean well-kept home. If this means painting some rooms or investing in new furniture you should consider it.
- You should also clearly define the boundaries, Getdigs.ie have a facility in the Homeowner advert form that allows the homeowner to tick what areas of the house the Lodger will have access to e.g. lounge, kitchen, garden etc. It also allows the homeowner to specify Smoking/Non-smoking, Male/Female etc.
What type of Lodger are you looking for?
UK Governments Rent a Room Scheme
- Getdigs.ie generally focuses on the weekday rental market. This ultimately breaks into two types of Lodgers; the student and the professional
- The Student – they generally look for accommodation from Sunday evening to Thursday evening. Their bedroom should be equipped with a good study desk, a table lamp and maybe some bookshelves. Some students may be looking for breakfast and an evening meal – you should incorporate this into your pricing. Others are happy to eat in the college.
- Professionals / Contract workers – this category of Lodger may only require the room from Tuesday evening to Thursday evening. They also generally eat out so cooking is not an issue.
Meals or no meals?
This is probable one of the most frequent questions we get asked. Around 80% of our Lodger do not want a main meal, the reason being is that now days the canteens in colleges and workplaces are of a very high standard and are often subsidized. So a lot of lodgers will only require a small breakfast and a light bite to eat in the evening – which they can get themselves if they have access to the kitchen.
If you have any queries about the above information please comment or send an email to admin@getdigs.co.uk