How much rent should I charge for a room in my home?

When deciding to rent out a room in your home, one of the first questions to answer is how much rent to charge. Many landlords are unsure how much is reasonable, especially when renting out for the first time. There are several factors to consider when setting the rental price, including the size of the room, location, amenities, and local rent levels. Let’s take a closer look at each of them.

Factors to consider:

1. Location: The location of your home is naturally one of the most important factors to consider when setting the rental price. Properties in and around larger cities, desirable neighbourhoods, and those close to public transport, shops and restaurants will allow you to set a higher rental price.

2. Size of the Room: A room with space for a desk, storage, or extra furniture will allow for a higher price point. Ensure you measure the square footage of the room to determine its size accurately in your listing, to give lodgers a good idea of what to expect.

3. Amenities: Consider the amenities that your home has to offer, such as a private bathroom, parking, access to a garden, or additional space that can be used by your housemate. These amenities may justify a higher rental price.

4. Local Rent Levels: Research the local rental market and compare the rental prices of similar rooms in your area. This information will provide you with an idea of the going rate for a room in your location.

5. Reductions for chores: Cohabitas is unique in allowing you to indicate a reduction of rent in return for some household chores. These might include gardening, cleaning, pet sitting or odd jobs. You don’t have to offer a reduction, but for some it is an important part of the value gained from renting out a room.

How to Determine the Rental Price:

1. Research Local Rent Levels: Check out local property websites or speak to a letting agent to gather data on similar rental properties in your area. You can take a look at other Cohabitas listings for comparison. This research can provide you with a good starting point for setting your rental price.

2. Consider Your Expenses: Consider your expenses, such as mortgage payments, utilities, and insurance when setting your rental price. Make sure that your rental income covers these expenses, and also leaves you with some additional income.

3. Decide the kind of lodger you want to attract: Have a think about the audience you want to attract, your ideal lodger or housemate – how much would they be able to afford, or want to spend on a room?

4. Be Flexible: Be prepared to adjust your rental price based on market conditions and tenant demand. If you’re struggling to find tenants, consider lowering your rental price to attract more interest.

Ultimately, it’s about finding a balance between covering your cost and finding a like-minded housemate that also fits your lifestyle and personality.

We hope this is useful for getting started. Do get in touch if you would like any help in setting the price for a room in your home.