Sub-letting... what do I need to know?

[fairy!]

If I rented a 3 bedroomed house, & wanted to live there & sub-let two of the rooms, what do I need to consider?  Do I need to declare anything to anyone?  Do I have to pay tax on the rent my tennants pay me?

Thanks x

[CheekyChops]

You will need to check your tenancy agreement as a lot don't allow sub-letting.  It will also affect your home insurance (assuming you have some).

[kags]

Yes - check that your are permitted to sub-let under the terms of your lease and make sure you notify your insurer. If the total rents you receive in a tax year are �4250 or less, they will be free from tax under the Rent a Room scheme. If it's more, you can claim to just be taxed on the excess, or draw up a proper account. this leaflet explains more

http://www.hmrc.gov.uk/pdfs/ir87.pdf

You, also need to think about council tax and other bills. You will not receive the single person council tax reduction, and you have to decide how to split this, and other bills.

[sandras]

What you are proposing is to 'sub-let' , as a private landlord myself, the terms of my agreement with tenants is that sub-letting is not allowed, and it is common practice to dis-allow such associations in tenancy agreements.

The best way is to include the additional tenants on the agreement. That way - you do not have to declare anything more to anyone else. As you would not be the Landlord, you would not be liable for tax due on the rent either as the 'tenants' payments whilst they can be collected by you would be payable to the Landlord.

If you sought to sub-let and the Landlord found out - property inspections are carried out by Landlords or their agents periodically - you would find that the landlord would either insist they were included in the agreement or he would seek an order for possession.

Hope this helps

[fairy!]

Hi, thanks for your answers... I was interested in the tax side of things, like if it would be seen as income etc... no worries about getting in trouble with the landlord... it would be my dad & all his idea!!