Comments on: Why you shouldn’t give your lodger a tenancy

By: Tessa

Tessa — Wed, 23 Nov 2011 13:02:03 +0000

If you are sharing living accommodation with them they will probably be lodgers not tenants. As always it will depend on the precise circumstances but it sounds like a lodger situation to me.

Best to speak to your Local Authority about the HMO / planning situation but I understand you should be allowed to have two lodgers before you get classed as an HMO. It is possible that the fact that you do not live there all the time may complicate things. Note that I am not a planning lawyer.

By: Matt

Matt — Tue, 15 Nov 2011 09:55:44 +0000

Hi Tessa,
My wife and my children live in Kent. I work in London and we own a flat 5min from my work. So during the week I stay in my London flat to avoid commute. I go to my kent home in weekends.
I decided to take in lodgers into my London flat to help paying my bills.
By law is it considered tenancy or lodgers? As if it is tenancy I have to ask my mortgage company.
Also the flat is a 2Bed 2 bath with a large lounge. How many lodgers can I have to avoid HMO or the planning permission?
Thanks in advance for your answer.

By: Tessa

Tessa — Fri, 03 Jun 2011 08:34:08 +0000

@Brend I agree it is impossible to have an AST if you are a resident landlord, but that does not mean you can’t create a tenancy. Not all tenancies are ASTs.

By: Bernd Ammerschubert

Bernd Ammerschubert — Thu, 02 Jun 2011 03:20:08 +0000

In connection with my comments under “The five main differences between a lodger and a tenant”:

Isn’t the question “Why you shouldn’t give your lodger a tenancy” somehow the wrong question, because what you should or want to give them or not is rather irrelevant. If you’re a resident landlord, they’re a lodger and you can’t give them an AST even if you wanted or tried to. If you’re not a resident landlord, they will be a tenant even if you give them a contract saying they’re a lodger. (???)

To Jay (above): In my layperson’s opinion, that solicitor either doesn’t have a clue what he’s talking about, or he’s just trying to scare you with some rubbish, which in legal terms is called ‘expressing an opinion’ and ‘acting in his client’s best interest’. In 90% of privately rented flats, the landlord is always a leaseholder (unless s/he’s only a tenant, which is ‘worse’). Keep us updated …

By: Tessa

Tessa — Thu, 12 May 2011 16:19:19 +0000

@James You should read all the guidance on this website – thats what its for! You will find an index to my 21 days here http://www.lodgerlandlord.co.uk/2010/02/23/21-days-of-tips-for-lodger-landlords-summary-of-posts/ and here are a few useful posts I have done afterwards

You ought to get your lodger to sign a loger agreement, you can get one here: http://www.lodgerlandlord.co.uk/shop/

By: James

James — Thu, 12 May 2011 16:15:52 +0000

Tessa,

I am very new at this and would like advice. I will be completing on a new two-bed/two-bath flat in June. I’d like to rent out the spare room to a lodger from July 1st. I’ve contacted the developers (who are still the freeholders, I believe) and they said they don’t have a problem with this. My questions are:

1) Should I tell my mortgage company?
2) What insurance must I get, and what insurance should I get?
3) Should I tell my insurance company?
4) Reading all of these comments I gather that I shouldn’t have my lodger sign anything. Do I just conduct a background check, take their deposit, and ensure they set up a direct-debit then forget about it?

Basically, I’ve never done this before and have no experience with this whatsoever. I’m wondering if you can provide me with the basics to get started.

Thanks!!

By: Tessa

Tessa — Sat, 23 Apr 2011 11:55:17 +0000

@Diane If your son is a resident landlord then they can’t be ASTs. If they share living accommodation then they will be lodgers. The HMO regulations still apply though, sorry! See here for info: http://www.lodgerlandlord.co.uk/2010/02/07/day-7-will-taking-in-a-lodger-turn-your-property-into-an-hmo/

By: Diane

Diane — Wed, 13 Apr 2011 22:38:43 +0000

My husband and I jointly own a house with our student son who lives in it. We have tenants with individual ASTs because both the NLA advice line and our insurers recommended this route rather than taking lodgers. However as I see it he is a resident landlord so are these not legal AST’s and should we use a lodger agreement when we sign up new ‘tenants’? Next year we have a couple who want to share a room which means we will have to register (and pay a large sum) as an HMO as there will be an extra person – does this still apply if we use licences rather than ASTs? (We do not have a mortgage company to worry about).

By: Tessa

Tessa — Fri, 01 Apr 2011 09:09:05 +0000

I think you will find that the Judge at the hearing will take a different viewpoint. If your freeholder has no objection to your having a lodger then what is the problem?

If this person is living in a room in your flat or house then his landlord is not the freeholder but you.

BTW I don’t think I can comment further on this case in the comments section so if you want any help you will need to use the advice service: http://www.lodgerlandlord.co.uk/advice/

By: Jay

Jay — Fri, 01 Apr 2011 08:53:29 +0000

Thank you Tessa, very appreciative. He was definitely a lodger with all shared facilities and amneties (kitchen, toilet and bathroom).

Do you know if I would be allowed to use a voice recording in court to serve my defence, as only the lodger and I are on tape speaking where I clearly state to him I am his landlord, but his dispute is I am merely a leaseholder.

I don’t know how he found out this because, yes, it is true, I am a leasholder but I tried to explain to him I am permitted to remain in this apartment for 99 years, which he somehow already knew about (I think he was opening my post and then destrying them as there were several bills and things I didn’t receive) Anyway, I admitted to him I am a leasholder but I am still his landlord. But he says I am NOT and I broke the law by not revealing this to him and leaving the details out of the AST, even though I told him the rules laid out by the my freeeholder (my landlord is th housing association) only apply to me and do not extend to my lodger, his solicitor is adament I am wrong and is tantamount to “libel and perjury” if I say such things in court as he says I am subletting, even though my freeholder has specifically said they have no problems with me keeping a lodger, all I needed to do was inform my mortgage people, but his solicitor says I have a ‘duty of care’ to reveal who the real landlord is and should’ve put this in the AST agreement and that I should’ve protected his deposit and he says the court will easily find in his client’s favour and pick-pocket me for 3x the deposit. Would you be able to represent me please tessa?