Spare room - Do I rent it to a friend/random/no-one? MONEY!

[rossyl]

Hi,

So I own a 2 bedroom flat. Currently the second bedroom is rented to a good friend, however, he is moving out.

Question is what I do with the room now.

FINANCES

Mortgage is a tracker (so is currently very cheap) + bills = £1k a month. After I pay that I'm left with £800-900 ish to live off.

My job may end in March, but I do have mortgage protection that'll pay £800 a month. Should interest rates rise I could be in trouble though.
BUT at the end of March I could also end up getting a large raise!

Rent income is £550 a month


RENTING A ROOM

My best friend might be able to move in. If he were to move in I'm concerned it might change/harm our friendship. It would be strange for us not to be on the same footing, issues always arise when living with someone and he has a girlfriend who is NUTS and they have arguments often.
However, he is my best mate I've known since I was 8yrs old, I've travelled with for over a month, and gone on loads of holidays.

I've never wanted to rent to a random person, I just think it would make me a bit uncomfortable in my own house.

LOSS OF MONEY

I would lose almost £6.5k by not renting the room.

I also spend half the week at my girlfriends.

WHAT TO DO?

What would you do - not rent it to anyone, ask my mate to move in, rent to a random??

Thoughts please.

Thanks

 

[Deleted member 6183]

why not move your g/f in?

She'd soon fill up your spare room with all her clothes and stuff.

 

[renault12ts]

Rent to friend. Only allow his GF in during the time you're away.

 

[A210AMG]

I would not want to rent out at all.


Just not keen on someone else using my house that I have spent time money and effort getting nice, bringing friends round etc.

Never done it, if you don't need the money (which sounds like you may although 'job may end in march but also pay rise in march? is that a different job?) then I wouldn't. Have it as your own an enjoy it.

 

[gina2201]

I'd rent to a friend!

 

[rossyl]

Rent to friend. Only allow his GF in during the time you're away.

Hey, don't think i can ask someone to pay £550 and limit when their friends etc come over.

why not move your g/f in?

She'd soon fill up your spare room with all her clothes and stuff.

A scary option! But she's got her own place.

 

[Mudster]

Move in with your GF and rent the whole flat out......

What'll that be? £1200 a month in N London or maybe more?

Use the excess to pay down your mortgage whilst the rates are low.

Rental market is booming whilst all this sillyness is going on.

 

[Noodle-Pulp]

The tax man cometh!

 

[st4]

Move your mate or the GF in

Dont know how long you've been with the GF, it might be too soon to discuss moving in together, or she may take offence that you didnt move her in and picked your mate instead....

The rent will go a long way and make you financial life a lot easier and give you company in the house which is always nice

 

[Gridlock]

If you're going to be living with a mate, for god's sake still get a signed agreement in place (for both your sakes).

 

[stevieb15]

From what you've said about your finances you obviously need to rent it.
Personally I would go for someone you don't know, preferably an out of towner who will only be there probably Monday throught to Thursday and go home for the weekend and holidays.
In that way you get some privacy, something we all need, you can set some rules of the house that suit you and you can say goodbye easily if it doesn't work out.

 

[st4]

Advertise the room in your place of work as well, means you will have something in common with the person you share with and not some basket case bohemian type that you could land.

 

[wemorgan]

My job may end in March, but I do have mortgage protection that'll pay £800 a month. Should interest rates rise I could be in trouble though.
BUT at the end of March I could also end up getting a large raise!

Check the T&Cs as usually there is a deferred period before paying out.

 

[jaymanek]

I have done this for years when I lived in London.

DO NOT rent to a good friend.. the relationship will never be the same after the initial honeymoon period.. No matter how well you think you know someone, living with them can often be difficult.. small practicalities often become major issues..

Get a random person in.. I found that this was the best way.. We kept out of each others way mainly and so there was enough formality there for the tenant to take their responsibilities seriously. (Paying rent, cleaning, sharing bills etc etc)

From a financial perspective interest rates are bound to go up.. in any case why the heck pay double when you can pay half!

 

[petermansell]

From what you've said about your finances you obviously need to rent it.
Personally I would go for someone you don't know, preferably an out of towner who will only be there probably Monday throught to Thursday and go home for the weekend and holidays.
In that way you get some privacy, something we all need, you can set some rules of the house that suit you and you can say goodbye easily if it doesn't work out.

+1 good advice - a monday to friday lodger is your best option for the reasons stated.

 

[wemorgan]

If you do go down the weekday lodger route, it may look more appealing if the rent is fully inclusive.

It may grate with a future lodger knowing you're sitting at home all w/e in a heated house and he has to pay 50% bills.

 

[rossyl]

Thanks guys.

I've decided on the best friend route - I await his decision. The two of us were going to buy a house together at one point, so we know each other very well.

I do take on board the benefits of having a random, and should the best friend say no I may consider a weekday type person.

The main issue is trusting someone with all my stuff whilst I'm out, and also feeling that when i come home that it is my home and not a place I share.

I'm also well aware of the tax considerations.

 

[SportsCoupeRich]

I have rented to my best mate for the last 4 years and wouldnt change it for the world. It is great.

 

[Sonny Burnett]

i own a few properties and renting out is a ****in mine field.. you could get someone in and then they decide not to pay to which theres not too much hope you can get your money back.. always rent to a friend over a stranger.. but you always run the risk of him loosing his job ect ect and then he cat pay so what happens then?? renting is a git lol

 

[rossyl]

FYI Guys, best mate moved-in in Feb, and its been a really good laugh. All going well.