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the cost of living is getting ever more and more expensive and getting a lodger or renting out a room in a property that youll be living in might be a great way to earn some extra little cash especially as the government offer the rent a room scheme which gives you an allowance to earn your rental income tax-free until a certain limit now this is something that i actually do so without further delay lets understand how having a lodger works and delve in a bit deeper in how the rent a room scheme works im kozan from financial madness helping you be better with your money [Music] so before we get deep into the topic its important to make this clear this type of renting is very different to buying a property for the sole purpose of renting it out in this video we will be talking about buying a property where you intend to live in but you also rent out a spare room too this type of renting is when you get lodgers moving in as opposed to tenants in the first way that i mentioned having