A lodger is someone who rents a room in your home without having exclusive rights to any part of the property. It is less common nowadays to offer lodgers extra services such as cleaning, laundry or meals, but you can choose to do so if you would like a little extra income.
A lodger is someone who rents a room in your home without having exclusive rights to any part of the property.
Taking in a lodger means that the room would not be treated as unoccupied and you therefore will not lose Housing Benefit because of the changes to this benefit relating to the number of rooms in a property.
It's less common nowadays to offer lodgers extra services such as cleaning, laundry or meals, but you can choose to do so if you would like a little extra income.
What you need to do
Most of our tenants can take in a lodger, but you must contact us first and tell us that you are doing so.
Frequently asked questions
What is a lodger?
As a tenant, can I take in a lodger?
Most of our tenants can take in a lodger, but you must check with us first and tell us that you are doing so. This means that the room would not be treated as unoccupied and you therefore will not lose housing benefit through the changes to this benefit relating to the number of rooms in a property.
What will I need to provide for my lodger?
You will need to provide a furnished room as well as access to communal areas such as the bathroom and kitchen.
How much can I charge a lodger?
That depends on the area in which you live, the size and quality of the accommodation you are willing to provide and local demand for rooms.
Have a look on the Spare Room website at other rooms available in your area to get an idea of what the going rate is likely to be.
Will I get to keep all of the income?
If you let furnished accommodation to a lodger you will be eligible to keep the first £4,250 of rental income per year tax free.
As it is tax free, it will not affect the amount that you receive in child tax credit or working tax credit.
How will it affect my benefits?
Income received from your lodger could affect other benefits you receive. The first £20 of weekly income from a lodger is ignored and will not affect your benefits, but anything over this is counted as income.
You will need to inform both housing and benefits of the change in your circumstances.
If you are claiming a council tax single person discount you must also notify our taxation team.
If you receive income support, income based jobseeker's allowance or income related employment and support allowance, you should also notify the Department for Work and Pensions of the amount you will receive from your lodger as this may affect your entitlement to these benefits. You can do this on the Department for Work and Pensions website.
If you want to take in a lodger then you must seek advice first.
You can find more information and advice on the Citizens Advice website.