You might be eager to rent out your home. Many people love the idea of renting out a spare room in their property.
By doing this, it’s possible to add a little extra cash to your income. Currently, the amount you make is also tax-free up to earnings of £7,500. So, you can make a lot of money without losing any of it to tax each year. But, before you get carried away, it’s important to be aware of the right to rent checks that are put in place by the government. By being aware of these checks, you can make sure that you are legally able to rent out your home or property on a short-term basis.
Are You Letting The Property Yourself?
If you are letting the property already, it will be up to the landlord to determine whether you can rent out a room or an area of your home.
You will need to check their subletting policy. Most landlords will not allow you to sublet and certainly will not allow you to do so without their permission.
Breaking this term could lead to evictions, fines and even legal action. Subletting will be a part of your tenancy agreement so you can check this for yourself.
Is Your Property Mortgaged?
Remember, when you mortgage a property, this means that legally, the mortgage lender has partial control and ownership of the home until the mortgage is paid off. This means that they can legally stop you from subletting your home.
Indeed, it’s worth reading your mortgage agreement as this will typically be restricted. The exception would be if you have a buy to let mortgage. At this point, you can legally rent out any part of the property that you wish.
Do You Own A Flat Or A Maisonette?
If this is the case, you will likely be part of a leasehold-owned agreement. Simply put, this means that the owner of the building has a certain level of say in how you use your property.
You may find regarding this agreement there is a part about subletting. If that’s the case, you will need to go permission from the freeholder to sublet.
Be aware the government also has put limits on how long you can rent for. In Greater London, you can not rent a property on a short-term lease for more than ninety days.
Other councils and boroughs will have their own maximum number of nights that you will need to check before renting your property.
If you want to rent for more than this time period you need to apply for a material change of use planning permission from your council.
Renting for more than a hundred and forty days a year will also mean that you are subject to business rates.
This can make things a lot more expensive, and you might find it difficult to keep on top of the costs if you’re just renting out a single room in your home.
Understand the checks, and you can make sure that legally, you are able to rent out your property on the short term.