Renting the Room
Although the room may need to be available when the child returns in university holidays, it is worth considering letting the room in the short-term. Many people are paying for their son or daughter’s university accommodation by letting out their bedroom at home during term time.
For students, a room in a house can cost £348 a month, compared with £409 living in halls, according to a well known flat sharing website. Earning money from renting their room at home can offset these costs.
The Daily Mail reports that Sarah MacAndrew, from Fulham, South-West London, found that overseas language students paying £120 a week are the perfect lodger. “Not only are they here for just one to three months, but they are vetted by the language schools, so I have peace of mind,” says MacAndrew.
As well as drawing up some ground rules for your lodgers, you should consider the tax implications of renting a room.
Under the Government’s Rent a Room scheme, you can earn up to £4,250 a year tax-free from renting a furnished room in your home. If you own the property jointly you can earn up to half this amount (£2,125) each.
You should also make sure that you are able to take in a lodger – for example if you rent the property yourself or you live in a local authority home. You will need to let your home insurers know and, if you live on your own, you will lose your council tax single person’s discount.