Where to advertise a room to rent
To find people to stay, you’ll need to spread the word that you have a room to rent. Airbnb is the best-known platform for finding guests, but there are plenty of others, including Homestay and SpareRoom.
There are also sites like Monday to Friday, where you can find guests who only want to stay during the week, while RoomForTea is a hosting site aimed mainly at women. Some sites charge a fee or commission to advertise, but others are free.
With demand for rental rooms soaring and more than two-thirds of homes in England and Wales underoccupied, it’s perhaps no surprise that many households are choosing to boost their incomes by renting out their spare rooms to visitors.
How renting out your spare room can pay
Hosting can be a lucrative business and, thanks to the government’s Rent a Room Scheme, you can earn up to £7,500 a year doing it. What’s more, you won’t have to pay any tax on that income.
But there’s a lot of competition out there. You’ll need to make your listing stands out and find reliable guests that pay up on time and treat your home with care. Below are our tips for renting out a room.
Decide what facilities you’ll offer
Some hosts just let out a bedroom and access to their kitchen and bathroom. Others will let guests use the garden and living areas, too. Think about what you’ll be comfortable with before posting your listing.
You may decide to charge more if you’re offering your guests perks like meals or their own bathroom. You’ll also need to think about whether they can use the washing machine and if you’ll charge for laundry.
Get the room looking its best
You should make the room as comfortable as possible. Redecorate if you need to, and ensure the room has everything to make your guests feel at home.
You might want to provide:
Fresh bed linen
A set of towels
Comfy pillows
A bedside table
Lamps for ambient lighting
A desk and chair, especially if you’re targeting business people or students.
If you can’t afford to redecorate, then small touches like new bedding, scatter cushions or a throw could make all the difference.
Set the right price
You can get a good idea of how much to charge by browsing other listings, as well as looking at hotels and B&Bs in your area. Your price needs to be competitive but fair.
If you’re going to charge more than the going rate, you’ll need to justify why in your listing. Your home might be convenient for transport links, for example, or furnished to a high spec. Maybe you’re even offering use of a hot tub or swimming pool. On the other hand, if you’re providing fairly basic accommodation, you may want to charge slightly less to attract more guests.
There’s no need to stick to the same prices year-round – you may want to increase your rates in peak tourist season or if there’s a big event taking place nearby.
Use high-quality photography
Images can make your listing stand out, so make sure they show your home in its best possible light. Clear out the clutter and dress the rooms – again, think flowers and soft furnishings.
Take pictures from different angles so guests can see the whole room. Include close-ups of any standout features, such as fireplaces or views, and make sure everything is sparkling clean. The right lighting can make a world of difference, and bear in mind that external pictures will always look better on a sunny day.
If you’re letting your accommodation through a management company, you may find they’ll send a professional to take pictures for you.
Write a great listing
You don’t have to be a prize-winning author to write an appealing listing. Just focus on what will interest your guests. Ask yourself the following questions:
Is there an en-suite?
Do you have a top-of-the-range mattress, designer coffee machine or other standout amenities?
Are you close to shops, restaurants or visitor attractions?
Is the train station within walking distance or do you have easy access to motorways?
Do you have space for your guest to park their car?
Keep it concise but packed with relevant detail. Remember, your guest may not know anything about your area.
Vet your guests
Airbnb provides host reviews of guests, but not all sites do. You might want to run your own background checks, such as googling them and checking their social media profiles.
For longer-term guests, there’s nothing to stop you meeting them first and requesting references.
Write an inventory
If the room you’re renting out is furnished, make a list of everything that’s in there, along with any existing damage like chipped handles or marks on the walls.
The inventory should be signed by both you and your lodger at the start of the letting. This gives you something concrete to refer back to if there are any disagreements over damaged furniture once your guest moves out.
Know the law
Even if you’re renting a room to guests or lodgers, you’re bound by many of the same laws as a landlord – particularly when it comes to health and safety.
For example, you must have a Gas Safe registered engineer check your appliances, fittings, chimneys and flues every year. Your local authority may have its own rules, too. Make sure you understand your legal obligations before you post your listing.
Don’t forget your home insurance
If you’re renting out a room, you must let your home insurance provider know. If you don’t, you could invalidate your policy. You could find your insurance provider increases your premium or even refuses to insure you at all. If that’s the case, it’s worth shopping around for a new insurance provider – and perhaps even a specialist policy.
Airbnb provides host insurance, but it may not be the comprehensive cover you’re looking for.
FAQs
Does having a lodger affect council tax?
If you’ve previously been living on your own but decide to take in a lodger, you’ll no longer be entitled to the 25% single-person council tax discount. That’s unless your lodger is a full-time student.
If you already have two or more adults living in the property, taking in a lodger won’t affect your council tax rate.
How much can I earn renting out a room?
How much you earn from your room will very much depend on your home and where you live. But the average UK Airbnb host earns around £6,000 a year, while typical earnings for a Homestay host are $1,200 a year (£986) globally.
Some areas, such as seaside resorts, are in huge demand during summer but attract less interest in winter. If you live near somewhere with a famous festival, such as Glyndebourne or Glastonbury, you could make a lot of extra money renting out your home while it’s on.
Am I insured to rent a room?
Many insurance providers will see renting out a room as higher risk, which means they might not cover you automatically. It’s best to speak to your insurance provider and ask to extend your policy. However, make sure you read the small print as there are likely to be exclusions.
Do I have to pay tax if I rent a room?
You can earn up to £7,500 tax-free through the government’s Rent a Room scheme. However, tax is complicated and everybody’s circumstances are different. To find out if you have to pay tax – or if you’re owed tax relief – contact HMRC.
Can I rent out a room in my house if I have a mortgage?
You can, but you might need to ask your mortgage lender. Some lenders will let you rent a room for up to 90 days a year without asking permission. But others may not like you renting out part of your home, especially if they find out that you’re renting a room without their consent.
Can I rent out a room in my house if I’m a leaseholder?
If you’re a leaseholder, you’ll need to check your contract to see if you can sublet the property. You’ll also need to let the freeholder know. Some freeholders won’t allow a leaseholder to rent out their property at all, even for short-term lets.
Can I rent out a room in my house if I rent?
Subletting your home is likely to be a breach of your contract and might result in you being evicted. If you’re a renter, it’s best to avoid renting out rooms without permission from your landlord.
Rachel’s a self-confessed money nerd who’s been writing about personal finance for more than 20 years. She spent 17 years writing for Moneywise, including a few years as Editor, and likes making complicated subjects like insurance, pensions, investing and tax, easy for people to understand.
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