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Renting Tips

Renting Tips for Landlords & Roommates

Hygiene & Aroma
Make sure the room you are showing is clean and tidy. Give the room a fresh smell with a scented candle or air freshener.

ID
When arranging viewings, ask the person to bring ID. In today's world it is best to be safe now rather than sorry later. (Ladies, try not to do viewings alone)

Viewings
Always let the person viewing walk ahead of you, when showing them around, it will give a better impression of space if they do not see another person in front of them.

House Rules
Be clear about what you expect of a new roommate, so tell them the rules of the house. There is no point in creating a situation where persons may fall out in the future.

Tax
Renting rooms may also have a tax implication, so it is best to talk to the taxman/IRS to enquire what the rules are.

City Renting
To rent a room in the city is easier that ever, there are lots of web sites around, just like www.Rooms-To-Let.com, and newspapers that advertise for roommates, housemates, flatmates, house shares, flat shares, for students and professionals.

Countryside/Villages
Rooms to rent in cities are easier to come by, but in quieter areas like the countryside and villages it is also best to check the local newspaper and the local shops for advertisements. (Please tell the landlord about Rooms-To-Let.com)

Lease and Bills
Before you rent a room clarify what the terms of the lease are, like what the minimum duration is, cost per month and which bills are included and which are not.

Broadband, Phones and Television
Now that everyone has easy access to communications services, you may want to have it installed in your room, so ask the landlord if they would permit the installation.

Scams
Never ever accept a new tenant without meeting them first.
Under no circumstance should you ever accept a cheque from someone claiming to be from overseas and traveling to your country for study or work.
They will ask you to accept a cheque from their family or employer, this cheque will be for well over the amount of the rent and they will ask you to return the difference.
This cheque is a fake so do not send any money.

Remember any serious tenant will want to see the room, so ask yourself, would you rent a room without seeing it? No, you would not.

United Kingdom Tax Information

The Rent a Room scheme
If you already have a lodger or are thinking about letting furnished rooms in your home, you can receive up to £4,250 a year tax-free (£2,125 if letting jointly). This is known as the Rent a Room scheme.
How the scheme works

The Rent a Room scheme is an optional scheme that lets you receive a certain amount of tax-free 'gross' income (receipts before expenses) from renting furnished accommodation in your only or main home.
Who can take advantage of the scheme?

You can choose to take advantage of the scheme if you let furnished accommodation in your only or family home to a lodger. (Your only or family home is the one where you/your family live for most of the time. A lodger is someone who pays to live in your home, sometimes with meals provided, and who often shares the family rooms.)

A lodger can occupy a single room or an entire floor of your home. However, the scheme does not apply if your home is converted into separate flats that you rent out. In this case you will need to declare your rental income to HM Revenue & Customs (HMRC) and pay tax in the normal way. Nor does the scheme apply if you let unfurnished accommodation in your home.

Do you have to be a home owner?
No. You can choose to take advantage of the Rent a Room scheme, regardless of whether you are a home owner or are renting your home. However, if you are renting, you should check whether your lease allows you to take in a lodger.

If you're a mortgage payer it's best to check whether taking in a lodger is within your mortgage lender's and insurer's terms and conditions.

If you share a home and both let a room or rooms
If you are both letting furnished accommodation in your joint home, you will each be entitled to receive half of the allowance (up to £2,125 for the 2009-2010 tax year) without paying tax.

If you provide meals and laundry services
If you charge for additional services, you will need to add the payments you receive to the rent, to work out the total receipts. If you get more than £4,250 a year in total, you will have to pay tax, even if the rent is less than that.
The advantages and disadvantages of the scheme

There are advantages and disadvantages of the scheme - it's simply a matter of working out what is best for you.
The principal point to bear in mind is that if you are in the Rent a Room scheme you can't claim any expenses relating to the letting (for example, wear and tear, insurance, repairs, heating and lighting).

To work out whether you will be better off joining the scheme or declaring all of your letting income and claiming expenses on your tax return you need to compare the following:
how much income you are left with after your expenses
the amount of your receipts (rent plus any income from laundry services, meals, etc) over £4,250 or £2,125 if letting jointly (2009-2010 tax year)
If you opt out of the scheme (or simply do nothing) you will pay income tax on the first amount. If you opt into the scheme you will pay tax on the second amount.
Rent a Room scheme and running a business
If you run a bed and breakfast business or a guest house, or provide catering and cleaning services as part of a letting business, the Rent a Room scheme can still apply to you. You will need to complete the relevant parts of the self-employment pages of your Self Assessment tax return.

Please go to http://www.direct.gov.uk for full up to date information.