What to charge for your spare room
So you’ve decided to take the plunge and rent out your spare room to a lodger. Maybe you saw our guide on the Rent a Room Scheme and were inspired, or just want to do your bit for the housing crisis, get additional income, and have the great company of a new flatmate.
Whatever your reasons behind wanting to rent out your spare room, the right price can make a difference to how attractive your advert is.
Do your market research
A great place to start is by checking out how much other landlords are charging for rooms in your area on our site. Obviously prices will vary depending on size, whether there is an en-suite attached, or other variables, but it should give you a general idea of what people are willing to pay for rooms in your area.
Do you have transport links nearby? Is parking included? Is there a good supermarket and other amenities close to the property? All of these and more can affect the fair price of your room, so think of the bigger picture.
Consider whether you want to include bills in the monthly rental charge. This can be really desirable for tenants, as it makes budgeting much easier, and it’s clearer how much they will be spending on housing in total.
Including bills in the total price can also increase the number of views to your advert, which in turn should increase the number of people who contact you about your room.
Consider the rent payment schedule
Some landlords like to advertise and charge weekly rental prices for their rooms. This can give the illusion of a cheaper rent on your advert, but can also confuse tenants.
Not only does a week’s rent price x four weeks not equal the cost of a month’s rent, but most people are paid monthly and budget on a monthly rotation.
Advertising and charging a monthly rent is more transparent for your tenant, and can reduce tension later down the line if a tenant has miscalculated their rent.
It’s also best to arrange for your tenant to pay by standing order. That way, money goes direct from their bank into yours on a set date, and there is no cash changing hands or need to remind them to pay.