If you need to to take on a lodger you should consider using a Lodger Licence Agreement. This page will explain why and how to create your next Lodger Licence Agreement.
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 lodger can stay for a couple of nights to a couple of months.
Taking on a lodger is a potentially a good way to generate some additional rental income from spare rooms in your property especially as the first £7,500 of income is tax-free under the Rent a Room scheme. However, it is important to choose a lodger who you get on with to ensure a smooth rental.
Once you have found a lodger, it is important to formalise the terms of the agreement to make it clear to the lodger that they are entering into a licence and not a tenancy agreement. This is essential for the lodger to understand their rights and obligations as a lodger.
As a result, a lodger can be evicted on shorter notice and can be moved to a different room of the house on reasonable notice. The live-in landlord, also known as a licensor, does not need permission to enter the lodger's room.
To create a lodger licence agreement which meets your requirements and protects your rights as a live-in landlord, simply register with Legislate and answer some simple questions. In minutes, Legislate will build a custom lodger licence agreement which will allow you to safely take on a lodger in your main home.