Taxes, Allowances, Bills, Rent and Deposits for Rooms to Rent in UK
Being a resident landlord you owe the same responsibilities as any other landlord. Safety comes first. Maintenance of the property is to be done on regular basis. Then there are taxes like council tax and income tax to be paid by you as resident landlord. There are utility bills which are to be shared between multiple tenants and you for rooms to rent in UK.
When rooms to rent in UK are rented out to more than one tenant at the same time, then the house of yours is categorized as house in multiple occupations. There is law relating letting of houses in multiple occupations that deals with its management and sets out certain standards. First of all it requires a licence to be held by the landlord issued by the local council. However, sometimes, the licence is not needed.
The law does not set any limitation upon you as to how much rent for rooms to rent in UK you are going to charge from your tenant. Customarily, rent is mutually agreed upon between the parties after negotiation and a rent amount is fixed before the period of tenancy starts. It is better to settle if there would be any increase in the rent during the period of tenancy.
If the rent is to be paid weekly, then you must give your tenant rent book to keep the record of rent payment. Supplying other tenant with rent book who don’t pay weekly is obligatory upon you. However, for other tenants, you should keep receipt of payment of rent.
The tenant has to pay deposit before the start of tenancy whether it be a room or UK flats for rent. The purpose of this deposit is to indemnify the landlord with any loss that is caused to the property because of your conduct. You can also deduct any arrear of rent from the deposit money. It must be clearly stated out in the tenancy agreement the grounds for the deduction of money from the deposit amount. Resident landlord is not required to register with government approved schemes for the protection of deposit amount.
There is a housing benefit scheme. The object of this scheme is to assist those tenants in payment of rent who are low on their income and can not afford to pay the rent. It is your discretion to let rooms to such persons or not. The council pays the rental amount to the tenant and they pay the rent to the landlord from the amount so given. But if you tenant is defaulter in payment of rent for eight or more weeks, you may ask the council to directly pay you the rent. You may also request direct payment if your tenant is in habit of irregular payments of rent.
You are taxed by the council and you can include the percentage amount of council tax in the rent. The tax rate varies with the number of tenants inhabiting your property. In case of an independent UK flats for rent, the council will directly tax your tenant. There is also income tax on the income received from letting your rooms. However, you can claim rent room allowance each year when you let rooms in your personally occupied home.
Likewise, in an independent UK flats for rent, utilities bills are to be paid by the tenants directly. But in case of letting rooms in your house when you have to pay the bills you can include some amount of the bills in the monthly rent. This amount must be agreed upon by the tenant. Another way to do so is to provide tenants with pre-paid meters.
Cathrine Mckay - About Author:
Cathrine Mckay is a marketing officer for Greenlet, property lettings website in Edinburgh. If you want more information on WWW.Greenlet.co.uk,or Please visit us Greenlet Edinburgh.
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