Children gone to University? Don’t let their room go to waste

 

At this time of year, hundreds of thousands of students head off to university or college for the new term. Whilst this can be a difficult time for parents, the extra room in the family home can help parents boost their income, reports the Daily Mail.
 

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.

 
 Tax implications
 

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.

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