Subletting

[montage]

I am toying with the idea of subletting in the future to keep rent costs down, and am trying to get to grips with the basics. Has anybody ever done this? What is the maximum you can charge? I believe I could get a decent 3 bedroom place for £600ish + bills, so let's guess approx £1000 after bills and council tax for three people. Any issue with charging £350pcm? What is to stop you charging £500 per room apart from the market prices and ethnical concerns?


Evidently I am trying to get to grip with the basics, but from scanning a few websites it looks like a pretty easy way to get cheap accommodation!

 

[CopperBrompton]

You need to talk to your mortgage company and insurer. What you can charge is down to the market rate for your area, coupled to how nice the place is. You'll generally get more for, and find it easier to let, a fully furnished room.

 

[montage]

You need to talk to your mortgage company and insurer. What you can charge is down to the market rate for your area, coupled to how nice the place is. You'll generally get more for, and find it easier to let, a fully furnished room.

Just to clarify .... I do not yet live in a property (relocating from parents house for first job soon - most likely to lodge for a few weeks unless I find somewhere more suitable). So I would be starting from a position of looking for somewhere to rent, with the intention of subletting.

Furnishing shouldn't be a huge issue what with the globalisation of ikea

 

[nickyboy]

Charge what you like. If it is too high, you'll be left with an empty room, that's all.

Remember a couple of things:
1) Check the terms of the lease. Many specifically preclude subletting so if you want to do it you will have to get landlord's permission
1) You're letting so you have no mortgage issues. However, you have to take out your own insurance for your own contents and any subletter would have to take out their own insurance for their own contents
2) The income you receive is taxable. It is illegal not to declare this income. You can offset some of the costs associated with providing the sublet to reduce your profit and thus tax.

 

[Brains]

As a Landlord and ex lead tenant make sure you advise your landlord that your will be the 'Lead Tenant' and you will be subbing.
What it means in reality is that as the 'Lead tenant' you are responsible for everything, paying all the rent, the bills, and keeping the property running, down to the smoke alarm batteries.

You will need to ensure you have enough cash in the bank to cover 'void periods' so that if one of your rooms is empty for a couple of months, that does not force you to move out.

What you can change is about 15% more than the cost, so a 3 bed house at £1000 PCM (so the costs are £333 per room PCM) you could add about £45 PCM to bring it to about £380 PCM + bills, but see what is being changed in the local area, You need to stay on the right side, if you overcharge then your flatmates will move out, if you undercharge you are liable to get some oddball tenants

You need to ensure your tenants don't know exactly how much you are paying, otherwise this will cause arguments

You also need to write up (and I mean "write") down some rules, such as who pays for the milk and well as how you pay for the leki, cable TV, and everything else

Also don't forget the deposit, which is liable to be about one and half's month rent.
You can not legally hold deposits from your tenants unless you are a registered with a deposit scheme (as most landlords and agencies will be)
Therefore the issue of damage or cleaning issues at the end of the tenancy will be down to you personally.

In short, with a big enough property it can be a way of living fairly cheaply, however don't think for one second that its risk free, 'cos it ain't !

 

[ColinJ]

It might be worth signing up to the Rent-a-room scheme?