More and more people are finding it harder and harder to manage financially. One solution, if you have a spare room in your house or flat, is to take in a lodger.
There are a lot of good points about this:
- It will give you a bit of extra income
- It will provide a home for someone who may not be able to afford to rent or buy
- It will contribute towards solving the housing crisis (particularly if you live in a high demand area such as London).
However as always when something seems sensible and obvious – there are problems.
- The first problem is that many landlords don’t like the idea and worry about ‘losing control’
- The second is that even if landlords are prepared to allow you to take in a lodger, they can’t as this will invalidate their insurance.
Well I am pleased to say that I have a solution to both of these!
The problem about insurance
This is the main problem. Many insurance products for landlords exclude tenancies where the tenant has a lodger – although not all! I am pleased to report that I have sourced an insurance product which will permit this – it is the landlord’s insurance product from Alan Boswell.
Alan Boswell specialise in landlord’s insurance product – and indeed they provide specialist policies for many landlord associations. They have confirmed to me that provided the fact that the tenant is taking in a lodger is disclosed to them, their insurance cover will continue to apply.
They also promise to try to beat any landlords existing insurance premium, which is nice. You can read more about this here. If you tell them that you want a policy which can be used where the tenant takes in a lodger they will be able to help.
There are many other things which worry landlords about allowing tenants to rent to a lodger. To help with this I have prepared a form of agreement for a tenant to sign with a landlord. This will serve to amend the tenancy agreement and introduce many new clauses which will protect the landlord’s position when the tenant takes in a lodger.
For example the agreement provides for the tenant to
- Take references and a credit check
- Carry out the right to rent check
- Provide details to the landlord
- Require the lodger to sign a professional lodger agreement (provided) and give a copy to the landlord
- Be responsible for any damage done by the lodger
This form was originally drafted for landlords on my Landlord Law site, but a version is now available on Your Law Store along with a form of tenancy agreement and a right to rent checklist for lodger landlords. You can also get our ‘new lodger’ pack with referencing letters and checklists as part of a bundle deal.
Making your life easier
The new forms which are now on sale on Your Law Store and the ability to take out a valid insurance will hopefully now make it easier for tenants to rent out a room in their house to a lodger – which will make it easier for them to pay their rent which will benefit their landlord!
A win win all round.