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The Government offers a Rent A Room Scheme, which encourages homeowners to rent out a spare room, or section of their home. At a time when many people are looking for accommodation both short and long-term, the scheme is of real benefit all round and is a great incentive for homeowners to start utilising spare parts of their property in this way.
If you are considering renting out part of your home and benefitting from the scheme, this mini guide will help you gain more insight:
What Is The Rent A Room Scheme?
The scheme means that you can rent out a room in your home, or a section of your home, and earn up to £7,500 pounds rent tax free. You can earn more than that, but you have to declare it in your tax returns. If more than one person benefits from the rental tax relief then the relief allowance is split between those people.
Are There Restrictions?
Yes, there are conditions and restrictions to the scheme and it is important to check the details before renting to ensure that you meet the criteria. Importantly, the space being rented out has to be furnished to meet the criteria and it has to be part of your main home, not an additional property.
What About Airbnb?
Airbnb lets and similar lets can fall under the Rent A Room Scheme. The conditions are the same – the area being rented simply needs to be part of the taxpayer’s main home, and it needs to be furnished. Renting out a holiday home or something similar will not qualify you for the Rent A Room Scheme.
Do You Need Extra Storage To Clear Space For Renting?
To benefit from the £7,500 tax break allowed by the Rent A Room Scheme you have to prepare a part of your home to make it look attractive and inviting to a potential tenant. Long-term tenants are likely to want a clean and well-furnished blank canvas. Short term tenants on holiday are more likely to want a room with more character.
However you choose to decorate and furnish your spare room, in order to clear it you can utilise London storage. It’s handy because you can have your spare room contents in there for the duration of your rent period, all at an affordable price. Additionally, if you are doing short term lets and using the room for other purposes in between, it is handy to have a local London storage unit you can pop to to swap furniture over and keep all your bedding and other tenant-specific items in great condition before you rent out again.
Why not take a closer look at London storage and the Rent A Room Scheme to find out how you can benefit from the extra storage space, and generous tax relief to save you some money on renting your space out, too?