If you rent your home or have a mortgage, you must seek permission from your landlord/mortgage lender before taking in a lodger (please refer to your tenancy/mortgage agreement). NB: Your insurance premium could be increased if you rent out a room. It is advisable to check with your insurer before taking in a lodger.
Advice for Resident Landlords
This page is for resident landlords who rent out rooms in their home, or anyone looking to rent out a room in their home. (If you are a non resident landlord, please visit the main Landlord section.) This page will look at the following:
* Am I allowed to rent out a room?
* Will taking in a lodger affect my income?
* Being a landlord
Will taking in a lodger affect my income?
Any rent you receive is classed as a form of income and could affect the level of income tax you pay, along with any income related benefits that you receive. NB: If you receive an income related benefit and take in a lodger, you should immediately notify your benefit provider.
The Government offers a 'Rent a Room' scheme that provides tax incentives if you rent out a room in your home. For more information about the 'Rent a Room' scheme, please visit Gov UK.
Being a Landlord
You will have responsibilities as a landlord when renting out a room in your home. For more information on rights and responsibilities, please see the Resident Landlords Guide.