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A lodger licence agreement allows a live-in landlord to rent a room in their main home to a lodger. A lodger is an excluded occupier which means that they do not have exclusive possession of their room. As a result, a lodger is not a tenant and has less rights than under an assured shorthold tenancy as they are living in the landlord's main home.
A rolling lodger licence is a lodger agreement with no end-date and which automatically renews at the frequency of licence fee payments. Both the landlord and the lodger can terminate the agreement by serving resonable notice which is usually a multiple of the payment frequency.
A lodger's licence fee will usually include utilities which will represent a fixed amount. As the lodger's room will be in the landlord's main home, the utilities will usually be in the landlord's name. If the utilities are not included in the fee, the landlord might request the lodger contribute a fair proportion of the utilities for the period.
Since a lodger will live in the landlord's main home, the landlord will already be paying for utilities. It is therefore more practical for the landlord to cover the additional utility costs in the licence fee. However, if the utility costs are likely to vary, the landlord might prefer to charge these seperately. In this case, the utilities fee must be a reasonable proportion of the total utility fees.
Legislate's lodger licence agreement is configurable so that utilities can be included or excluded from the licence fee. Legislate's template is lawyer-approved, up-to-date with the latest legislation and easy to use.