Renting a room out to a mate, what are the implications/need a contract?

rossyl · 20 Sep 2008 at 11:38

Just wondering if there were any insurance, tax or other implications to renting a spare room out to a mate.

i thought of having a contract in place so that the renting of the room is a complete business thing and doesn't affect our friendship. Anyone got a simple contract?

Thanks

Mr Jack · 20 Sep 2008 at 11:48

If it's a room; he's a lodger. Lodger, basically, have no rights. You don't need a contract.

Tax-wise you are allowed up to something like £4500 in rental income without having to pay tax.

J.B · 20 Sep 2008 at 13:30

Always a good idea to have a contract, living with a mate is a lot different from going down the pub with them.

Not sure of exactly what kind of contract you'd need ect. Id say go to your local CAB

Biohazard · 20 Sep 2008 at 13:31

contract his ass

Raymond Lin · 20 Sep 2008 at 13:33

Mr Jack said:
If it's a room; he's a lodger. Lodger, basically, have no rights. You don't need a contract.

Tax-wise you are allowed up to something like £4500 in rental income without having to pay tax.

Rossyl, what happened to your property law?

Licensee and Leases and all that. There is a limit that you can get away tax free, i forgot what it was.

rossyl · 20 Sep 2008 at 14:15

Raymond Lin said:
Rossyl, what happened to your property law? Licensee and Leases and all that. There is a limit that you can get away tax free, i forgot what it was.

hey

In the process of buying a property and realised I've forgotten most of it! Was just hoping someone already had experience with this and so could give me a quick easy answer...come on raymond dazzle me!!