Put your spare room to work: the lodger is back

In the past 12 months, there has been a significant increase in the number of people looking to rent out a room. Registered user figures on the website spareroom.co.uk, for example, have risen from 400,000 to 830,000, and by far the biggest increase is in the number of live-in-landlords - those taking in a lodger.

The site says its users are 70% professionals and 30% students. Potential lodgers don't want a bedsit or somewhere just to sleep; they're after a flat or house where they can entertain, cook and relax, with access to modern-day necessities such as wireless broadband. Think of it as less like Rising Damp and more like Friends.

Last month, the BBC got in on the trend with the announcement that it has commissioned a Rising Damp-style sitcom, with the working title of In My Country, from the comedy writer Simon Nye. Where Rising Damp in the 1970s had Rigsby, played by the late Leonard Rossiter, this will have a more modern landlady, Mrs Ledley.

Conny Haindl, 33, is typical of the new breed of live-in-landlord. She decided to rent out a room in her cottage in Edinburgh to help with the mortgage. "I wanted to rent to a friend," she explains. "When you come to a certain age, you don't want to share with just anybody. I lived for two or three months on my own and I loved it, but Frances is a good tenant."

Conny decided to keep the arrangements informal and didn't draw up a contract. "Approaching your friend about rent can be weird, and you have to take care of everything because it is your house." Her advice is to take a deposit, even from friends.

Conny's tenant is 26-year-old Frances Woodifield. "Living with Conny was the right solution at the right time," she says. "We rearranged the house and put lots of girly things in. I have lived on my own before but we're not really that on top of each other. Conny is busy in her garden and I'm off doing other things.

"There were a few teething problems, such as needing the bathroom at the same time, but we sorted it out pretty quickly. It's very amiable."

Hypnotherapist Jennifer Teale rented out the spare room of her two-bedroom flat in Kirkintilloch when she split up with her partner. She took on his share of the mortgage and put her flat on the market.

"As the flat wasn't moving, taking in a lodger to help with the mortgage payments seemed like the obvious solution," says Jennifer, who is now landlord to French student Christelle Cluze, from Grenoble, who is on a year's work placement in Glasgow. "I thought Christelle would be exactly right, as my first degree is in French and I lived in France for two years.

"I charge £200 for a double room, and Christelle has use of the communal areas. I bought a contract on line from lawdepot.co.uk for £15. It's simply a matter of downloading it and adding your details, then they make up the contract and you print it off. It's all working out very well - and not hugely demanding. We eat together but cook separately, and because our working hours are different, I often have the house to myself.

"I'm enjoying sharing my space, and as Christelle is quiet and amenable, it's all very relaxed. Occasionally we sit and chat in the evenings, and she is certainly giving me a chance to fine-tune my French. Suddenly I'm remembering all those obscure verbs."

IN WHAT sounds like perfectly polished French, Jennifer is happy to translate for Christelle, who is studying for a Master's degree in information management. Christelle says she chose to become a lodger not only as an inexpensive way of finding somewhere to live; she also felt that a live-in landlord would help her to clue up quickly on things such as work agencies, transport links and the Glasgow area in general.

"As I still live with my parents back home in Grenoble, renting a room isn't such a huge transition," Christelle explains. "The location also suits me, as I didn't want to live in Glasgow itself, and sharing a house appealed to me as I didn't want to live alone in a big city.

"We have similar set-ups in France, particularly with foreign students looking to rent a room. Sharing a television isn't a problem as I don't understand a word of it - but hopefully that won't be for too long, as I'm taking English classes here, as well as conversing with Jennifer."

Matt Hutchinson of the SpareRoom website says rentals such as Jennifer's now account for the majority of their users. "Just 18 months ago, this group accounted for 33% of our adverts," he says, "with the rest made up of groups of sharers, live-out landlords and people looking for rooms. Now the figure is 51% - which, taking into account the increase in users, represents a 100% increase in people taking in lodgers."

He adds that the UK government's Rent a Room scheme is providing a practical solution to rising mortgage costs, as it allows people to earn up to £4250 (just under £355 a month) by renting out a furnished room in their home, and the market for shared accommodation is changing to reflect this."

Taking in a lodger is a relatively straightforward process. If you're operating under the Rent a Room scheme, the room you offer must come furnished, and the lodger should also expect to be allowed the use of communal areas such as the kitchen, bathroom and any living spaces.

Essentially, lodgers share the accommodation with you as if you were renting a flat together - it's just that it's your flat. That means you can realistically expect your lodger to do their share of cleaning and take care of their own laundry and cooking.

Of course, if you really hit it off with your lodger, you may well end up cooking for each other without it being any kind of formalised agreement, but you shouldn't be expected to provide meals for them. Additional services often traditionally associated with lodgers, such as laundry and meals, are not necessarily the norm.

"If you do decide to offer these services and charge extra, you'll need to take this into account when you calculate your income for tax purposes," says Matt. "The limit of £4250 you can earn tax-free includes all income from your lodger, so even if the rent is less than this but the extras take it over the limit, you'll have to declare it."

RENTING OUT a room in her house has worked well for IT consultant Kathryn Green. She let a room in her three-bedroom detached house in Carmunnock to her friend Sarah McDonald, a business development executive for an HR consultancy. As Sarah had rented out rooms when she was raising a young family, she had experienced the landlord-lodger relationship from both sides.

"I was between relationships," says Sarah, "and needed to save money and have some breathing space to work things out. Sharing a home was preferable to coming back to an empty one-bedroom flat. Although I enjoy my own company, I had been used to a family atmosphere.

"When my children were young and we had a big house - with matching mortgage - we had several lodgers and I found it a positive experience. In fact, one even insisted on putting his own rent up. He was a research student who came and went quietly, microwaved his food and cleaned his own room. But there was another who used to spill his coffee all the way up the stairs, every night without fail."

While Sarah points out the importance of vetting prospective lodgers, she adds that: "If you like the person, you can overlook certain irritations." There were no such tensions between Sarah and Kathryn, as Sarah loves to clean and iron, while Kathryn is a first-rate cook.

The arrangement worked so well for Kathryn that, when Sarah moved on, she took in more lodgers. "It gives you a different perspective on life," she says. "I had a young woman from Sri Lanka, who was a joy. In terms of a contract, it's a bit like a marriage - you have to negotiate."

Both women agree that sharing a home is not simply down to finances; it's also about company for both landlord and lodger. They also believe that sharing a home is more eco-friendly in terms of gas and electricity bills.

There are practical consequences to consider, of course. Most homeowners and council tenants can take in a lodger, but you need to inform your mortgage provider (or local authority), and alert your insurance provider. If you claim any benefits, these may well be affected if you take in a lodger.

There are plenty of places to find a landlord or tenant, such as the adverts in The Herald's Scotland's Homes on a Wednesday. How much rent to charge depends on where you live and what your property is like, so check out what people are charging for a room in your area. Around Glasgow, it ranges from about £200 to £450.

Of course, you should make sure safety is your watchword. Always obtain references from your lodger - sites such as tenantverify.co.uk offer identity and credit checks. And take a leaf from Jennifer's book: draw up a written agreement with the conditions outlined in advance. In practical terms, it's also a good idea for your lodger to set up a standing order for the rent.

Follow these rules and you should banish the spectre of Rigsby (and his cardigan) for good.

Our step-by-step guide to becoming a live-in landlord If you own your property, discuss the plan with your mortgage lender. If you rent from a landlord, check your tenancy agreement. And if you're a local authority tenant, check with your local authority. Inform your insurance provider to check you're still covered, and find out whether or not your lodger will need their own insurance. Inform your benefits agency if you receive any benefits. Let the council know if you're paying a reduced rate of council tax for single occupancy. Get the room furnished and ready, and decide the terms and conditions in advance. l Get a lodger agreement in advance so you are both covered. Check local rents to ensure you are setting a fair rent. Advertise your room with a reputable newspaper or website. Once you've found your lodger, you may want to use a credit-checking facility. When signing contracts, set out the details of who is responsible for what in advance. Be on hand and helpful the day your lodger moves in, but don't crowd them out. Inform your tax office if you earn more than £4250 a year from your lodger.

Useful Links For rooms to rent, visit theherald.co.uk/homes or read Scotland's Homes in The Herald every Wednesday. See also www.spareroom.co.uk. For information on the Rent a Room scheme, visit www.direct.gov.uk and search for "Rent a Room scheme".