The short version: A resident landlord is someone who rents out part of their own home while living there. Your tenant is technically a lodger, not a tenant with full rights.
What are the tax rules?
If you earn under £7,500 a year from your lodger, you can use the Rent a Room scheme and pay no tax at all. You don’t even need to tell HMRC. Above that, you’ll need to file Self Assessment.
Do you need permission?
If you own your home outright, no. If you have a mortgage, check with your lender. Leaseholders should check their lease. Council tenants need council permission.
What rights do lodgers have?
Fewer than tenants in a separate property. You don’t need to protect their deposit in a scheme. You can give reasonable notice to end the arrangement. But you should still have a written agreement covering rent, notice period, and house rules.
What about bills?
Usually included in the rent for lodgers, which keeps things simple. Just factor them into what you charge.
Taking in a lodger and not sure about the tax? Ask us and we’ll explain how it works.
