my 1st house, do i rent to tenants or lodgers?

[jeffrey]

thanks mate, yeh i think ill arrange to meet with the council.

btw whats does AST mean?

thanks

Assured Shorthold Tenancy.

[patrickyuis]

thanks mate, yeh i think ill arrange to meet with the council.

btw whats does AST mean?

thanks

[patrickyuis]

basically i have just bought my first house, a 4 bedroomed terrace in salford (new broughton).

im a student and i bought the house as an investment, saves me paying rent and i could get some money from renting the rooms out.

ive decided to only rent out 2 of the bedrooms and to leave the other room as a spare for my family or friends.

but my dilema is that i dont know what procedure to take, ive read that lodgers are the easiest to handle but the only problem i have with that is that :

"The Inland Revenue allow you to earn up to £4250 per year (Just over £350 per month) tax-free through the rent-a-room scheme"

and if im renting out TWO rooms at a reasonable price, im bound to cross that £4250 mark....so does that not make me eligible for the rent-a-room scheme?

or is it possible that i can have a lodger and a tenant in the same house?

i have no idea how much a reasonable price is for the rent because its going to be a new house in a new development and i hope to furnish all the rooms. and one of the rooms is abit bigger, has en-suite and a small balcony. so obviously i would have to charge different amounts of rent, am i right?

and i am to believe that if all the tenants/lodgers in the house are students then the house would be exempt from paying council tax?

thanks guys, ANY advice would be appreciated