Share property

Sharing property ownership or renting out parts of your property to others can be a useful way of splitting costs or supplementing your income, but ensure that you protect your interests by formalising things with relevant documents.

If you have a spare room, you can take advantage of the Government's 'Rent a Room' scheme which lets you earn tax-free income up to a certain threshold from letting out furnished accommodation in your home. You can find out the threshold you can earn that will be tax-free on the Government's website. Taking on a lodger can prove a tax-efficient method of supplementing your income but it's important to get the details right. A written Lodger agreement (or Lodger agreement for Scotland) sets out matters such as rent, deposit and the rights and responsibilities of both lodger and landlord. It also enables you to ask your lodger to leave if you need to get your room back. For more information, read Taking in a lodger.

Ensuring that you set out all the house rules right at the start can prevent disagreements further down the line. A well worded House rules for lodgers document can deal with issues such as whether your lodger is allowed to bring pets to the property, if their partner or friends are allowed to stay over and, if so, how often. It can also tackle privacy matters such as areas of the house where you don't want your lodger to go and whether you're allowed to enter their room. Even things like bathrooms or cleaning rotas can be covered.

An Inventory is an effective way of recording and agreeing the condition of items in a rented property. It will provide useful evidence in the case of any disputes at the end of a tenancy but it's important to also include any particular obligations of both lodger and landlord in the Lodger agreement (or Lodger agreement for Scotland).

If you own a parking space or a garage that you don't use, you might choose to rent it out so that it provides you with some benefit. Although it may be quite easy to find someone who wishes to rent it, particularly in city-centre locations, it's a good idea to set out any agreements in writing at the beginning. In England and Wales, a Car parking licence or Garage licence will ensure that everyone is clear on where they stand and formalises the arrangement. It covers everything from the fee to responsibilities, indemnities and claims arising from the use of the space, and it enables you to get the parking space or garage back if you want.

If you have spare office space, a rising trend over recent years has been to share offices, thereby helping out with the cost of rent. It can also lead to benefits in terms of making new contacts. If you decide to rent out some of your additional office space to other small businesses or individual workers, you can use an Office sharing agreement to set out all the important details such as what is being rented out and the rental amount. It can also deal with a whole range of matters including electricity, heating, internet, phone lines and photocopying, making clear if these are covered by the primary rental or if additional payments are necessary. For more information, read Sharing space.

If you work from home and run a limited company, subject to HMRC requirements, it may be possible to formalise the arrangement by creating a home office space contract for yourself, so you can claim back the overheads in running the business for tax purposes. You can rent out a room in your own house to your business with a Home office rental agreement. If you are a tenant but would like to sublet space within your home, this may also sometimes be possible, but you will need to check your lease and ensure that you get consent from your landlord. For further information, read Sharing space.

Couples who aren't married may consider living together under a cohabitation arrangement. However, couples who cohabit don't have the same legal rights as married couples who live together. Therefore it's important for couples who cohabit to formalise their arrangement in a Cohabitation agreement. This agreement will set out the financial arrangements between partners and help protect any assets between them. For further information, read Cohabitation.