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Hello,I am a first time buyer and i have only been in UK for about 3 years. I am buying a flat for myself. its a two bed flat and i was wondering if i can rent out the second room off & on on Air BnB. Ultimately i want to move towards HMO or SA.
I think doing Air BnB off and on would give me bit of experience which i can utilise later on. Also i would be able to assess whether i want to do this or not.Please adviseThanks
Hi Mo and welcome.There are a number of things to consider here.Do you really want to rent out your 2nd room to complete strangers? I would find that a real strain. Coming and going late at night etc. You really have no idea of who you are dealing with.I would suggest that you rent out your second room to a long term lodger. You can vet and reference the individual that is going to share with you. Their monthly rent will assist you towards paying your mortgage and there is the attractive "Rent a Room" allowance of £7.5K tax free allowance.If you are interested in Air BnB on a professional basis, then you need to get yourself educated and you may like to visit the Short Stay Show in London:Short Stay Show - discounted ticket offerHope that helps for starters?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I have been following PT for a while now and i found it very helpful.
Thanks for your advice, i agree with many things you have said but starting out in property business i found the idea of permanent lodger compared to intermittent controlled rent outs a bit more stressful. Of course it has got its own issues.
About the rent a room scheme, can i read more about it somewhere please? do i need to register for self assessment or file tax returns?
I am already in 40% tax bracket. I am on PAYE at present.
Thanks for sharing the link for the event.
Really appreciate your help.
If you are in receipt of rental income, you should register for Self-Assessment.Details of the Rent A Room scheme are >>> here. If you do attend the event, look out for myself and Nick, because we will be there.
Thank you so much !
I will if i go.
Here's a few links to get you started...
This site is excellent for anything relating to lodgers
This site has some excellent podcasts regarding SA
Thanks Gary, that's so helpful !
I totally agree with the above. My friend has been doing this for years and it is a bit of a hassle. but as she is retired has time on her hands to do the necessary work that it entails. The main pit falls are people are arriving and leaving at different times not always convenient as the rooms have to be prepared- cleaned, sheets washed, bathroom/kitchen cleaned etc. Also its controlling and arranging the bookings.Although she has had no problems I would also be concerned with strangers as you are also living in the property. One thing she finds is that most people just use it to sleep in and never use the kitchen as they always eat out as many are just tourists doing short term visits. Go with a full time lodger.
Thanks Douglas for sharing your thoughts. Much appreciated.
First part to consider
Did you have a look at your lease as it is a flat it might have restrictions on letting it out. Might need permission from free holder.
If you are in process of purchasing flat it means are you already renting or living with a friend.
If it is the former then my suggestion would be to keep living on rent at the place you are in already or if notice has been given then find another place and give the flat on rent on a 6mths basis and see how it pans out. This of course depends on your circumstances. That is if the flat is mortgaged and on high pay out and other costs. If your outlay is lower then you could have a income after paying your rent out to your landlord.
BTW consider the s24 changes on mortgage and other costs first.
This way you will not be living with someone under one roof and still experience the letting market.
What do others think of this type of proposal. I have heard some do that and still have an investment.
Sounds good but would i not need a buy to let mortgage if i am not staying in the property myself ?