Your guide to the Rent a Room scheme

What is the Rent a Room Scheme?

The Rent a Room Scheme is a government initiative designed to encourage homeowners to rent out a spare room in their property. By participating in this scheme, you can earn tax-free rental income up to a certain threshold, making it an attractive option for those looking to boost their income and make use of their available space.

Why rent out a room?

• Extra income: Earn tax-free income up to £7,500 per year.
• Utilise spare space: Make the most out of your unused rooms.
• Meet new people: Experience the joys of hosting and building new relationships.

How does the scheme work?

1. Eligibility: If you’re a homeowner or a tenant with the landlord’s permission, you can join the Rent a Room Scheme.
2. Tax benefits: Earn up to £7,500 per year tax-free. If you share the income with someone else, it’s £3,750 each.
3. Simple process: Opt into the scheme when filling out your tax return. No additional forms or bureaucracy involved.

Steps to rent out a room

1. Prepare your space: Ensure your room is clean, furnished, and ready to welcome guests.
2. Advertise: List your room on Roomies.co.uk to reach a broad audience of potential lodgers.
3. Select the right lodger: Conduct interviews and choose a tenant that fits your criteria and lifestyle.
4. Create a contract: Outline the terms of the rental agreement to protect both parties.
5. Register for the Scheme: Declare your income through your Self Assessment tax return and enjoy the tax benefits.

Why choose Roomies.co.uk?

• Use-friendly platform: Easy to list your room and manage inquiries.
• Wide reach: Connect with thousands of potential tenants looking for a room.
• Support & resources: Access to tips, advice, and customer support to help you through the process.

Frequently asked questions

Do I need to inform my mortgate lender?

Yes, it’s important to check with your mortgage lender to ensure there are no restrictions on renting out a room.

Can I rent out more than one room?

Yes, you can rent out multiple rooms, but the tax-free threshold remains the same.

What if my rental income exceeds £7,500?

If your income exceeds £7,500, you will need to pay tax on the additional amount.

Do I have the right type of lodger?

Lodgers who rent a room and do not commingle in shared spaces vs. those who do can apply to this scheme, learn more about your tenancy type.

Get started today

Maximise your home’s potential with the Rent a Room Scheme. Join Roomies.co.uk and start earning extra income effortlessly. List your room and connect with eager tenants today! If you are still uncertain if this scheme applies to you, the UK government has put together a self assessment sheet to determine if you eligible.

Contact Roomies: For more information or assistance, feel free to contact us.

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