If you love meeting new people and helping them learn, offering homestay language immersion stays or hosting foreign students is the perfect way to bring in some extra money without having someone permanently living in your home.
Under current U.K. tax saving rules you can earn up to £7,500 per year, that’s £625 per month, tax free by renting out a furnished room in your home through the government rent-a-room scheme.
How does it work?
As a Lingoo host family providing homestay language immersions you choose whether you prefer to have children only, adults only, or family groups and you decide the period of stay, from a few days to a few months. Your guest(s) will partake in family activities and live alongside you, literally immersed in your culture and language.
Hosting foreign students is usually a longer term commitment through the school year from September to June and they will be attending school or university through the week. As the host you will also be responsible for providing an agreed number of meals, plus use of a shared bathroom and kitchen facilities. Your guest is free to come and go as they please.
How much can I make?
Renting a room in London you can expect to make a minimum of £200 per week or £300 with an meals included. The price depends on the quality of the room and location. Outside of London expect more 30-50% less. You can charge extra for internet and laundry facilities, but most hosts include these in the price. You will be paid directly by your guest, less the 13% fee you pay to Lingoo.
You can also make additional income from hosting a foreign student by providing private tuition as a homestay teacher for a portion of the day. Homestay teachers earn a minimum of £400 per week again depending on location and property type.
To become a homestay teacher with Lingoo you will need to hold a recognised EFL or ESL qualification to teach English, such as TEFL, CELTA, DELTA or TESOL and have relevant practical experience.
How do I apply to do it?
To sign up as a host with Lingoo is free. Then all you need to do is complete your online profile and provide us with proof of address and identification to complete our verification process.
If you are hosting children under 18 it is recommended that you have a DBS check and if your guest is with you for longer than 28 days, you must inform your local authority. If you claim single person discount on your council tax you may no longer be entitled to this, however if your guest is a student this will effectively be cancelled out, as they will be exempt.
You don’t have to do anything to opt into the rent-a-room scheme, but if you earn over £7,500 you will need to complete a self-assessment tax return form and pay tax on anything over that.
If you claim benefits, the first £20 a week of rental income will be disregarded for housing benefit claiming purposes and Universal Credit isn’t affected at all by host or lodger income.
Are there any other requirements?
Your home insurance premium isn’t likely to increase significantly, but you should tell your insurance providers because if you need to make a claim it may be invalidated.
If you don’t own the property you will need to get permission from the person who does. It shouldn’t be a problem at all if you have a social landlord, but secured tenancy agreements are different.
So if you have a private landlord make sure you get the agreement in writing from them. For leaseholders, be sure to check the terms and conditions of your lease.
If you have a mortgage, your lender shouldn’t have an issue with you renting out a room in your house as long as you are still living there. But they may require some forms completing, so please contact them directly to discuss.
If you are not reading this from the UK, please check with the relevant authorities in your country for similar schemes and country specific regulations.
Click here to watch our short video on becoming a host with Lingoo and here for more information on financial and organisation matters.
