Rent A Room!

Bedrooms across the land are being vacated as students head to university. It can be a sad time for parents, but there are also opportunities knocking on the door. New-found space means new chances to bolster the family's finances. of course, rooms will need to be made available when students return for weekend visits and the holidays, but it's possible to find flexible lodgers - fellow students, tourists or the coveted 'Monday to Friday' tenant.Renting out a grown-up child's room is a great idea for empty-nesters. For students, a room in a house can cost £348 a month, compared with £409 living in halls.Cities with the highest proportion of student lodgers include Edinburgh, oxford, Cambridge, Aberdeen and Exeter, where room rents vary between £366 and £418 a month.

Sarah MacAndrew, from Fulham, South-West London, found that overseas language students paying £120 a week make the perfect replacement while her daughter is away at university. And she can earn more if she provides an evening meal.

'Not only are they here for just one to three months, but they are vetted by the language schools, so I have peace of mind,' says MacAndrew. Her top tip is to establish ground rules for tenants. 'You need to stipulate bathroom usage as well as if and when they can use the kitchen or living room,' she says. 'I don't enforce a curfew, though some people do. The students like to practise their English, so are keen to talk over meals. I've had a mix from the Middle East, France and Japan. Italians are always jolly and easy guests.'

HOUSE RULES

You can earn up to £4,250 a year tax-free in the government Rent a Room scheme.

Don't just sell the room, promote the house (eg, does it have broadband?) and the area.

Interview potential lodgers.

Discuss ground rules at an early stage to test compatibility.

Clarify how much of the property they can use.

Does the rent include meals with the family? Consider a kitchen rota if not.

If they have a partner, can they stay over; and how often?

What chores, if any, do you expect to be done?

Draw up a legal agreement - these can be found online.

The average rented room in Oxford and Cambridge costs £97 a week.You do need to be of a sociable disposition to take in lodgers and be flexible about sharing your living space, A double en-suite with a small living room costs from £50 a night with breakfast.
The average age of our lodgers is 34 and many are middle-income earners. They don't like slumming it in a hostel or cheap hotel room; they're after a room in a nice home.

Apart from terms and conditions (it is advisable to draw up a lodger agreement), consider the tax implications. Under the Government's Rent a Room scheme, you can earn up to £4,250 a year tax-free. The room must be furnished and you might want to get gas appliances safety-checked.If you are a leasehold owner, a tenant yourself or live in a local authority property, make sure you are allowed to take in a lodger. You will need to notify your home insurers and, if you live alone, you will lose your council tax single person's discount.