PDA

View Full Version : Help Needed re:- letting spare rooms



chimpanzes
22-02-2007, 20:41 PM
Hi, to cut a long story short I have just purchased a large 8 bedroomed house and would like to rent out some of the rooms monday to friday. My questions are what type of insurance do I need? Who do I need to tell? Are the people renting the rooms classed as lodgers? how many people can you take in? - as you have probably guessed I have never done this sort of thing before so any help would be appreciated.
Thanks in advance

Sophie

alisonf
22-02-2007, 20:53 PM
I am not the best person to answer answer but I saw this previously and it may help.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

Alison

MrShed
22-02-2007, 20:54 PM
Can you embellish a bit? What exactly are you planning to do? Just seems bizarre that you would only rent out monday to friday....

chimpanzes
22-02-2007, 21:07 PM
basically i would just be renting out to people who work away from home monday to friday and return to their own property at weekends. I have seen a website called Mondaytofriday.com

MrShed
22-02-2007, 21:17 PM
Ah ok that would make sense :)

I think the main thing you would probably need to be aware of is I THINK the property would become HMO licensable if you took in more than 2 lodgers. Do a search for HMO to find out more!

chimpanzes
23-02-2007, 08:33 AM
Thanks for your help, I will look into this.

Poppy
23-02-2007, 10:11 AM
Monday to Friday? Don't be bamboozled by catchphrases.

You need to realise that because their possessions remain in your property they actually have 24/7 occupation, which in my book means they pay a full week's rent. Unless you run a bed and breakfast guest house and they pack up completely each weekend…

You have not specified whether you will reside at this property. Is it your actual home?

chimpanzes
23-02-2007, 10:20 AM
yes it will be our home and yes they would take their stuff with them at weekends.

Poppy
23-02-2007, 10:23 AM
To the more experienced members. What kind of tenancy is chimpanzes offering? Additionally, is this a trade or an investment?

jeffrey
23-02-2007, 10:37 AM
To the more experienced members. What kind of tenancy is chimpanzes offering? Additionally, is this a trade or an investment?

Let's see. It can't be:
a. an AST, because not only/principal home of T; nor
b. a Business Tenancy, because residential use.

I therefore suggest that it might be:
c. a common-law contractual tenancy; or
d. not a tenancy at all, but only a licence.

Other opinions awaited.

chimpanzes
23-02-2007, 10:44 AM
This is really interesting, im a bit bamboozled but am learning so much from you lot. Thanks again.

Paragon
23-02-2007, 10:46 AM
Could this be a bed and breakfast type business?

jeffrey
23-02-2007, 10:49 AM
Could this be a bed and breakfast type business?

If so, legal arrangement would be licence.
But degree of permanence and exclusive possession point towards common-law contractual tenancy.

Poppy
23-02-2007, 10:51 AM
Bed and breakfast? This is what I'm wondering because it may involve different accounting and tax responsibilities on top of the fact that these people are probably akin to hotel guests. [Insert: Without meaning to pre-empt the answer but if this property were run as a guest house, surely it would require permission from the local authority for change of use?]

Fear not chimpanzes you will have a definitive answer eventually. In the meantime may I suggest that you learn about the new(-to-you) phrases that you have seen posted here so far. Perhaps you will research and learn your answer yourself using the wider internet.

Bel
23-02-2007, 18:58 PM
If so, legal arrangement would be licence.
But degree of permanence and exclusive possession point towards common-law contractual tenancy.

If I were OP, I would not grant exclusive possession.
I would reserve right to enter to hoover the carpets.

chimpanzes
23-02-2007, 19:18 PM
Hi, the property will not be a bed and breakfast as no food would be involved.
I will be doing the cleaning of the rooms myself on a friday when the lodgers have gone home. Also I will not be allowing locks on the doors. Thanks again

Paragon
23-02-2007, 19:26 PM
Perhaps, sounding more and more like a hotel, but with the same guest?

chimpanzes
23-02-2007, 19:36 PM
I was hoping just to use the Rent-a-room scheme, would this not be possible.

P.Pilcher
23-02-2007, 21:41 PM
You could consider yourself to be offering a sort of "bed and breakfast" service - bit short on the breakfast - however don't do it with more than six rooms or you will need a fire certificate. The requirements for one of these are expensive.

P.P.

Poppy
24-02-2007, 09:52 AM
Treat them as lodgers ie they share your home 24/7. Additionally you will need a House in Multiple Occupation (HMO) licence from your local authority because you will be classed as having more than two households.

If you try to do something different, you could end up on the wrong end of:

landlord and tenant laws
tax liability

Rent-a-room is fine as long as that's what you're doing and you haven't inadvertently stumbled into a scenario that you did not intend.

Continue with your research. Keep it simple.

Worldlife
24-02-2007, 17:53 PM
This question should really be answered on the mondaytofriday website (http://www.mondaytofriday.com/info_owners.php)

They seem to be focussed on the 'rent a room' scheme and this would give 24/7 agreement. The Monday to Friday arrangment does not seem to be subject of any special written agreement recommended by the website and I think it should.

Perhaps you would refer your query to the website concerned email Email mondaytofriday organisation (info@mondaytofriday.com)

Would be interested in their answers