Well the 21 days of tips has now concluded.  If you are a lodger landlord, I hope you have enjoyed it and found it useful.

To help you find your way around it, here is a list of all the posts published in the series:

Day 1 - What is a lodger?
This looks at whether there is a legal definition of a lodger and gives advice on avoiding creating a tenancy. There are some interesting comments on this tip.

Day 2 – Have you got permission to take in a Lodger?
This looks at the various permissions necessary before you can rent out a room in your home.

Day 3 – Have you got proper insurance?
People don’t always realise that taking in a lodger can invalidate your insurance. This tip looks at how to avoid this.

Day 4 – Is your property in a proper condition?
Although lodger landlords are not bound by the landlords repairing covenants as set out in the Landlord and Tenant Act 1985, this does not mean that they have no obligations at all …

Day 5 – Have your gas appliances been tested for safety?
Lodger landlords are bound by the gas regulations, and this tip sets out what needs doing and also has some safety advice

Day 6 – Do you have the right furniture and furnishings?
This tip looks at getting the room ready, and discusses your legal obligations

Day 7 – Will taking in a lodger turn your property into an HMO?
Something very much to be avoided if at all possible, this tip explains how

Day 8 – What about tax and council tax?
This tip looks at the government’s rent a room scheme, and SpareRoom.com’s Raise the Roof campaign.

Day 9 – How do you find lodgers?
Discusses various methods such as student accommodation offices, shop windows and the internet.

Day 10 – How do you draft adverts and deal with enquiries?
This tip stresses the importance of safety, as criminals have been known to target lodger adverts.

Day 11 – How do you interview lodgers?
Looks at preparation for the interview, suggests questions to ask and discuss, and looks briefly at deposits

Day 12 – What checking and referencing is needed?
Discusses things to take into account when coming to a decision and describes the referencing process

Day 13 – What about rent and housing benefit?
Discusses the thorny problem of how much rent to charge, and looks at the Local Housing Allowance and the problems associated with taking in lodgers on benefit

Day 14 – Should you have house rules?
These set out domestic arrangements, the sort of thing not covered in a formal agreement

Day 15 – Should you use a lodger agreement?
This may seen unnecessary for an informal lodger situation but it is best to have one, just in case problems arise

Day 16 – Should you take deposits and use an inventory?
Deposits are useful protection if your lodger breaks something, and an inventory is essential for working out if any damage has been done, particularly over a long period

Day 17 – How much paperwork and record keeping is involved?
This post gives a useful list of all the paperwork involved

Day 18 – How should you behave towards your lodger?
Making friends with your lodger, privacy issues, and increasing the rent?

Day 19 – How should you deal with problem lodgers?
Sets out an action plan

Day 20 – How do you evict a lodger who won’t go?
Most people will never need this post

Day 21 – What should you do when your lodger leaves?
Dealing with the last day procedures

Thats the end of the tips. If you want more, I also have a book out, which you can buy from Amazon – The Quick Guide to Taking in a Lodger.

Our last few tips have looked a problem lodger situations, but of course this is not the norm.  Most lodgers get on very well with their landlord.  However all good things have to end, and sooner or later the day will come when your lodger leaves.

There are many reasons.  Most of my lodgers, for example, were students who were only ever going to stay for a limited time. Perhaps your lodger is moving elsewhere for his job, or has decided to rent a flat or even buy his own place.

You should try to make your lodger’s departure as pleasant as possible, if only because he will then be more likely to recommend you to other people.

Here is a list of the things you need to deal with.

If you have taken a deposit
You will need to check the condition of your lodger’s room against the inventory (inventories are discussed on day 16), this should be done shortly before they go.  It is  best if you do this with your lodger present and both go through the inventory together.

Hopefully the room will be in a spotless condition and you will be able to refund the deposit there and then. Otherwise proceed as follows:

• If you know how much it will cost to deal with the damage (for example if it is a broken desk lamp which you know you can replace for £15) you can simply deduct this from the deposit and pay the balance
• If you do not know the replacement cost or the cost of repair work, say them you cannot refund the deposit immediately. Get contact details and say that you will contact him once you know. Make sure you do this promptly.  It the delay is going to be longer than a week, give him a ring and let them know the reason for the delay.
• Once you know the cost, either send him the balance or arrange for him to call round for it, if your lodger prefers to be paid in cash.
• If there are rent arrears, you deduct this from the deposit after any damage has been deducted first.

Fair wear and tear – this is an important rule about deductions from deposits.   When considering deductions, you should not expect a property (ie for a tenancy) or a room (ie for a lodger let) to be in the same pristine condition it was in when the lodger moved in.  This is particularly the case if your lodger been there for a long time.  So long as the rooms is in a reasonable condition for the amont of time your lodger has been living in it, that is all you can expect.

This means that you will not normally be entitled to charge for cleaning or redecoration.  Unless your lodger has been smoking in his room in breach of his lodger agreement (see day 15), and the décor and furnishings have been damaged by the smoke.

Visitors book
I had a visitors book and got my lodgers to write in it on their last day.  They were always happy to do this (and always had a good look through the other entries), which means that I now have something to remember them by.  You do forget, and I think this is a nice thing to do.

Post
If your lodger gets a lot of post, suggest they arrange for a postal redirect. If you don’t mind re-directing their post for them, don’t forget to get their forwarding address!

However you will not want to act as an unpaid mail forwarding service forever.  Make it clear that you will only do this for a couple of months, and that post received after this will be sent back marked ‘return to sender’.

On the day that they leave
If they still owe you any rent, make sure you get a payment from them before they go.  Otherwise it may be difficult.

Make sure their room is checked properly before they go.  I once had a Japanese student leave £20 in travellers cheques in the bin.  If you find it now, this will save having to forward it on to them.

Unpaid rent
If your lodger is hard up or on a low income, in most cases you will not get paid, and it is best to accept this and move on.

However if you want to pursue it, be aware that the only way you can force someone to pay if they refuse to pay voluntarily, is by getting a County Court Judgement (CCJ) in the Small Claims Court (there is a money claims online service). You will need to have the new address for service of the court papers, so it is a important to get a forwarding address from your lodger before he goes.

After your lodger has gone
You have your room back! Lodgers are nice, but sometimes it is also nice to have your privacy back.  However if you need the money, you will have to start the whole process of getting a new lodger to take his place.

If you are the one moving out
Be aware that your lodger will only have lodger status (discussed on  day 1) if you are living in the property with him and sharing living accommodation. If you move out permanently, for example to go and work in another town, your ‘lodger’ will become a tenant.

As you will no longer be a resident landlord, the tenancy your lodger will acquire will be an assured shorthold tenancy.  The change will happen at the time when you move out.  You should therefore get your lodger to sign up a proper AST agreement when you go. You can find out more, and get tenancy agreements, from our Landlord Law service.

If you are selling your property, you should get your lodger to move out, at least by the time you are ready to exchange contracts, as your purchasers may not want to sign if he is still living there.

*****

What is your experience of the things in this section? Do you keep a visitors book? Have your lodgers ever left unusual or valuable things behind? Have you ever taken a lodger to court for unpaid rent?

Note – please see also this >> later post on dealing with possessions left behind

Although hopefully this will never happen to you, very occasionally lodger landlords will need to evict their lodger. Todays tips give guidance on this.

Caution – todays tip only applies to lodger landlords who share living accommodation with their lodgers.
The guidance given here regarding eviction, will *only* be applicable to landlords with lodgers living in their own home where at least some living space (e.g. kitchen, bathroom, sitting room – and preferably more than one room) are shared with the lodger (this is explained on day 1).

If your lodger only uses his own room, and in practice does not use any of the rooms used by you, the advice here will not apply to you and you should take legal advice.

Note  also that the property must have been your main residence for the whole of the time the lodger has been living there.

If you use the procedure set out here in circumstances where you are not entitled to, you will be committing the criminal offence of unlawful eviction.  You may also be at risk of being sued for financial compensation, and/or an injunction ordering you to let him back in again.

Notice to quit
Before following the information given in this tip, you must have given your lodger formal notice to leave. This was discussed on Day 19.  The effect of this will be to end your lodgers legal right to live in the property.

If your lodger refuses to go
In most cases, your lodger will leave as asked on or before the day given in the notice you have given him. However in a few cases (and this happens only *very* rarely) your lodger may refuse to move out. If this happens, consider first the following options:

• If your lodger is a student, complaining to his university or college may help. Or have a word with the accommodation office.
• If your lodger came to you via the HR Department of a local employer talk to them about it.
• Have a look at the lodgers application form (see Day 11). If there are any next of kin, consider contacting them to see if they can help.

However if none of this helps, you may have no option but to proceed to eviction.

Eviction
If you have a lodger who refuses to go, you can follow the procedure below. Note that save in cases of exceptional bad behaviour (preferably where you have reported matters to the police), you should not use this procedure unless you have given your lodger at least 28 days formal notice to leave. In all cases, at least one letter giving notice to vacate *must* have been given to the lodger, and the notice period must have expired.

Where you are evicting your lodger for violent or criminal behaviour, you should make sure you will be able to prove this if it is ever challenged by your lodger.  This is why getting the police involved when there are incidents, as suggested on Day 19, is a recommended.  Keeping a diary of events is another good idea.

1. On or shortly before the day the lodger is supposed to move out, ask him when he will be leaving. If he asks for just a day or two longer, you should normally agree to this, particularly if there is a genuine reason for his request (e.g. if he cannot move into his new accommodation immediately).  Otherwise, proceed as follows.

2. Arrange for the locks on your property to be changed at a time when your lodger is likely to be out for some time. (It is probably best not to warn your lodger of this beforehand in case he decides to stay in the property to prevent you doing it).

3. When you lodger returns, refuse to let him in. If you think that he is likely to cause trouble, arrange for the police to be present (it may be a good idea to arrange for this anyway). The police should attend if you tell them that you expect there to be a breach of the peace. If the police will not attend, make sure that you have someone else with you, to act as an independent witness.

If the police are not there and your lodger starts causing trouble, do not open the door (or shut the door before he gets in). Ring the police and ask them to come out immediately. Do not let the lodger back into the property.

It is very important that you use no force or violence whatsoever when evicting your lodger. If you do, this will put you in breach of the law yourself, and you will be vulnerable to being arrested and prosecuted by the police. This is why a passive eviction process of refusing to allow him back in is recommended. If your lodger attacks you, you can defend yourself, but you should be careful to avoid any situation where this can happen (e.g. don’t open the door). This is why having a Police presence is so important, as if your lodger becomes violent, they can deal with it for you.

4. Your lodger will be entitled to have his possessions returned to him. However, in most cases he should only be allowed back into your property (e.g. to pack) if there is police presence.

5. Under no circumstances should you or anyone in your house let the lodger in again after this. If he continues to cause problems, consider going to a solicitor and asking for an injunction. However it is most unlikely that this will be necessary. In most cases the lodger will accept the situation, particularly if the police have been involved.

General notes on eviction
The procedure outlined above should only *ever* be used as a last resort, against a lodger who has behaved badly towards you, and who has either been given several warnings and written requests to vacate but has totally ignored them, or who has behaved so appallingly that it is unreasonable for anyone to expect you to allow him to stay in your home any longer.

If you are worried about forcible eviction, it is a good idea to take legal advice first, but make sure it is from someone who knows and understands housing and letting law (preferably a solicitor). Give them a copy of this blog post and ask them if, in their opinion, the advice given here (and the section of the Protection of Eviction Act 1977 referred to below) applies to you.

If you decide to proceed without taking legal advice first, and are challenged about your right to evict a lodger in this way without a court order (either by the lodger himself or by any legal advisor on his behalf), tell them that your legal authority is contained in section 3A(2) of the Protection from Eviction Act 1977.

In the first part of this act, it states that no residential occupier shall be evicted other than by ‘due process of law’ i.e. by obtaining a Court order for possession. Section 3 of the Act then goes on to list various types of occupation where this rule does not apply – they are described in the act as ‘excluded tenancies and licenses’.  Sub sections (2) and (3) are the sections which provide for lodgers to be excluded.

You can read Protection from Eviction Act 1977 via this link.

*****

What is your experience of the things in this section? Have you ever had to evict a lodger forcibly? Were the police supportive? Do you have any tips for other lodger landlords?

In most cases your lodger experience will be a positive one. However sadly, this is not always the case. If you do experience problems, todays tips should help.

Stage 1 – talk to your lodger
If you are unhappy about something, have a word with your lodger about it. For example if he is not complying with your house rules (discussed on day 14), or is starting to pay rent late.

Bear in mind that it may be that your lodger is unhappy about something that *you* are doing, and this is the reason for his behaviour. We all have irritating habits – your lodger may find your love of opera played loudly as annoying as you find his failure to wipe the kitchen surfaces down after use. If you are both reasonable people you should be able to sort something out.

Getting it out into the open so you both know what the problem is, will generally be better than letting things fester.

However you should try not to get into an argument or say anything you might later regret. If you don’t think this is possible, it might be best just to write. Although if your relationship with your lodger has deteriorated to the extent where you cannot have a proper conversation with them, you may want them to leave anyway.

If the problem is about late payment of rent, there may be a reason for this – perhaps your lodger has had to take a cut in salary for example and is finding things difficult. It is better that you know this sooner rather than later.  For example, with good lodger who you would be sorry to lose, you might consider giving a temporary rent reduction.

Stage 2 – write a letter or note
If talking about the problem has not done any good, the next thing to do is to put it in writing. This may also be a good idea if your lodger is out a lot, and it is difficult to find a time to speak to him.

You may also find it easier to put your complaint in writing anyway, particularly if you get flustered and are easily intimidated by your lodger, or if you feel that he does not take any notice of what you say.

Your first letter need not be very formal. Just set out clearly and without using any language that might antagonise, the things that have been concerning you. Don’t be too accusatory, or say anything that you will later regret. Make sure you keep a copy, and that the copy is dated.

Stage 3 – write a second, more formal, letter
If your chat and first note doesn’t seem to have worked, you might want to try another letter. Or perhaps your lodger improved after your talk but has since slipped back into his old ways.

Make the second letter a bit more formal. You should also  warn him that if things do not improve you will be asking him to leave (assuming that this is in fact what you are thinking of doing).

Note that you do not *have* to do a second letter, and if you have already decided that you want your lodger to leave you can skip this stage and go straight to giving formal notice to leave. (Or if you are not going to ask him to leave, and think that he just needs a further reminder, you could do another informal letter, as discussed above)

The threat of being asked to leave may bring your lodger to his senses and hopefully you won’t have any more problems. However if he takes no notice and just carries on, then you should consider seriously asking him to go.  This is after all your house. If your lodger is behaving badly or not paying rent, you should not be expected to put up with this.

The first stage of getting a lodger to leave, is giving him a formal written notice

Stage 4 – give formal notice to leave
[Note: Todays tips are about problem situations. However in most cases where landlords ask lodgers to leave, it is for something non controversial which both parties understand (such as the landlord needing to use the room for something else). However, even here you should (just for the record) give your lodger a formal (although pleasantly worded) letter asking him to leave.]

Giving formal notice is the first stage, legally, in recovering possession of a property.

The standard notice period (for lodgers)  is ‘not less than 28 days’, ending at the end of a rental period. So, if their agreement is monthly and runs from the 12th of the month to the 11th, the notice should ask them to leave on the next 11th day in the month after 28 days.  If they have a weekly agreement which runs from Saturday to Friday, the notice period should end on the first Friday after 28 days. You should be able to tell from your lodger agreement (discussed on day 15) what the relevant days are.

If you are asking your lodger to leave because of relatively minor matters such as personality clashes or because they never clean the bathroom, you should give them the full 28 days so they cannot criticise you.

You should also read your lodger agreement carefully (if you have one) and follow any procedure set out there. For example it may state that you should give a longer notice period. If your lodger is not seriously in breach of the agreement, you should do this.

However for more serious problems such as aggressive or violent behaviour, or if you find your lodger has been using your property for criminal activities such as using or dealing in prohibited drugs (which will put him in breach of his lodger agreement), a shorter notice period may be appropriate.

Note – For very serious incidents, it may also be a good idea to tell the police when incidents occur. This will be helpful if you then need their help later if you have to evict your lodger (discussed on Day 20) as there will then be a documented history of (for example) violence, and they will be more likley to co-operate with you.

For cases of rent arrears, if you are using a professionally drafted agreement (as discussed on Day 15) , this will often say that the lodger’s license to occupy your property will end automatically if he is in arrears of rent of two months. However you will still need to give him a formal letter asking him to vacate.

There is a printed form of ‘Notice to Quit’, which can be used (the wording should have an option for licenses), but generally a letter saying that you are giving them 28 days (or whatever other period is appropriate) notice to leave, will be sufficient.  The notice to quit letter should just be about asking them to leave, and perhaps giving the reasons for this.  If you want to discuss something else, put it in a separate letter.

Note that the section 21 and section 8 notices used for assured shorthold tenants should *not* be used (for more information about these, and evicting tenants, see my Landlord Law web-site).

Tomorrow we will look at what you should do if your lodger refuses to go.

*****

What is your experience of the things in this section? Have you had any problem lodgers? What sort of things have caused problems? Do you have any tips for dealing with problem lodgers?

Making friends
Every lodger / landlord relationship is different, as all people are different. However on the whole, it is best not to be too friendly with your lodger.

Although you may personally like your lodger, the main reason they are in your house is to earn you some money. In the majority of cases therefore (not always but mostly) it is best to keep a bit of reserve, at least for a few months, until you know then better.

Remember that at some stage you may have to take a stand about something – putting up the rent for example or asking them not to do something, or even asking them to leave. If you have been too friendly it may make it difficult for you to do these things.

Even after you have known them for a while, always keep in mind that they are your lodger and you are their landlord, and do not do anything which may make this business relationship more difficult. The best attitude is to be friendly but reserved and to keep your personal life separate.

Privacy issues and entering the lodgers room
When someone is renting a room from you, they will expect some privacy. However, it is your house, and you need to be sure, for example, that there are no repairs which need to be done, and that your room is being used appropriately. Also, as discussed on day 1, it is important that you retain the right to go into the room from time to time, to prevent the possibility of a tenancy arising.

The best way to do this is by providing some sort of service. If you provide cleaning, going into the room will never be a problem. However if your lodger does his own cleaning, it is a good idea to provide another service which will allow you to go in from time to time, such as providing clean sheets and towels. You can either actually make their bed, or you can just leave the clean sheets on the bed and have an arrangement where they leave the dirty sheets somewhere, for example in your laundry basket.

Ideally you should enter the room once a week, or at least once a fortnight. Although you must not pry among your lodger’s personal possessions or indeed touch anything belonging to them, you should check visually that the room is in good condition (for example that the electrical sockets are not being overloaded), and that generally the room is being used in a responsible and proper manner.

You will probably go in from time to time when they are not there, particularly if you are doing the cleaning. You should be quite open about this, and provided you are not prying or being too intrusive, your lodger should accept this. If though, your lodger asks you not to go into the room at all, you should make it clear that this is your home and you will need to check its condition from time to time.

If they insist on complete privacy, particularly if they put a lock on the door and refuse to let you have a key, you should ask them to leave.

Putting up the rent
After your lodger has been with you for a while, you will probably want to put up the rent, for example because your own bills have gone up.

Having someone else living in the house will inevitably result in some increase in your utility bills – as (assuming your lodger’s room was unoccupied before) there will be extra heating and electricity being used.  Hopefully you should have taken this into account when setting your rent (discussed on day 13).

However, if your utility bills have gone up dramatically, for example if your lodger has the heat on full all day, then if your rent is an inclusive one, you will need to consider increasing the rent fairly soon. There is not much point in having a lodger if he is costing you money. If your lodger is unhappy about the rent increase, show him the bills before and after he moved in to prove your point.

With a long term lodger, it should be understood that you will increase the rent periodically in line with the cost of living, and most people will accept this.

However, if your lodger refuses to pay the higher rent, then (assuming the increase is a reasonable one) you should consider asking him to leave so you can find someone else.  Either someone who is prepared to pay a proper rent, or someone who won’t run up your bills so much.

A regards the procedure for putting up the rent, have a look at your lodger agreement first to see if this says anything about it.  If it is silent, then talk to your lodger and agree a new rent with them.  Then confirm this in writing, making sure you keep a copy of your letter.

If you do not want to discuss it with your lodger or if he is unwilling to talk about it, just give him a letter, with a copy,  explaining about the rent increase, and ask him to sign and date one copy and return it to you, to confirm his agreement.

Alternatively you can ask your lodger to sign a new lodger agreement, giving the new rent, for a new fixed period.

*****

What is your experience of the things in this section? Have you got into problems through being too friendly with your lodger? Do you make a point of going into the room from time to time? How often do you put up the rent?

Documents and record keeping
Although not yet as bad as tenancies, there can still be quite a lot of paperwork involved in renting out a room. It is possible to do things just on a handshake, but this is not really recommended.

This is probably a good place to list all the paperwork which could be involved, up to the time when your lodger moves in. It is a good idea to keep all of these (or as many as you have) together, perhaps in a folder or drawer in your desk.

• Insurance policy (discussed on day 3)
• Gas safety inspection certificate, if you have any gas appliances (discussed on day 5)
• Receipts and other documentation (e.g. instruction booklets, warranty documents etc) relating to the furniture and items in your lodgers room
• Any PAT certificates for electrical appliances (see day 6)
• HMO license documentation if you need to get an HMO license (see day 7) (this will not apply to the majority of lodger landlords)
• Advertising paperwork, copies of adverts etc
• Any notes taken from your initial conversation with your lodger (see day 10)
• Interview notes and the form completed at the interview (day 11)
• All references and reference reports obtained
• Any other notes, memoranda of discussions prior to accepting the lodger (may be important if you ever have a disagreement about what was discussed at this stage)
• The lodger agreement,(day 15) together with any ‘house rules’ (day 14), both signed and dated (by the lodger – he should have copies signed by you)
• Any inventory used (day 16), signed and dated, together with signed copies of any photos used
• A signed standing order form (note that if rent is paid in cash, you should give a rent book)
• A letter of authority to the Housing Benefit office for lodger on benefit/local housing allowance (see day 13)

That is quite a wadge of paperwork!

Note that you will find helpful reference letters, a lodger application form, checklists and (if you get the plus pack) a lodger agreement form in our >> New Lodger pack.

Future paperwork could include:

• Insurance renewal paperwork
• Next years (and subsequent years) gas safety certificates
• Any letters and notes from and to your lodger relating to his lodgings
• A note of any agreements, for example if you reach agreement for an increased rent

Rent Records: You should also keep a record of all the rent paid, with a record of the date it was paid. Otherwise, if you lodger misses a few weeks, it might be difficult to work out exactly how much he owes you.

It is also a good idea to get into the practice of keeping a note of any ‘significant events’. For example if your lodger behaves badly, even if you decide to put up with it for that once, keep a note of what happens and the dates, just in case you want to refer to them later.

How long should you keep paperwork?

The lawyers answer, is for a minimum period of six years after your lodger moves out. The reason for this is that the ‘limitation period’ for most legal claims is six years from the time the contact ended. You will also need to keep paperwork for tax purposes, and this should also be for six years.

My advice would be to keep everything for as long as possible. Then you will not be inconvenienced by not having it if you need it.

*****

What is your experience of the things in this section? Are there any other documents I have missed out from this list? How long do you keep your paperwork? Do you have any advice for other lodger landlords on record keeping?

Inventories and deposits tend to go together. Again, these are things that not all lodger landlords will bother with. However, when letting a stranger into your house, there is no harm in being careful.

A deposit is a payment taken for the landlord to hold against any damage to the property or breakages. If when the lodger leaves, things are in good condition and there are no rent arrears, the money should be returned.

Lodger landlords are in a better position than landlords of properties rented out to tenants under assured shorthold tenancies (ASTs). There are now regulations requiring AST landlords to protect all deposits with >> a government authorised tenancy deposit scheme. However as a lodger does not have a tenancy, any deposit taken does not need to be protected.

Even if the lodger does somehow acquire a tenancy, the deposit still won’t need to be protected (so long as you are still living in the property), as tenancies with resident landlords cannot be ASTs.

However, even though a deposit may not need to be protected in a government scheme, this does not mean you should not take care of it. It is best to put it in a separate account, so you won’t be tempted to spend it. Remember – its not your money!

If you take a deposit, you need a way to check the condition of the room and contents when the lodger leaves against the condition they were in when he moved in (see Day 21). This is where inventories come in.

An inventory is a detailed list of all the contents of a property, including details of its condition. For a lodger situation it is probably a bit ‘over the top’ to prepare an inventory of the whole house or flat (or such parts of it as the lodger has access to). However it is a good idea to have an inventory for the lodgers own room.

If you decide to do an inventory, you need to make a list of all (and I mean all) the contents of the room. This includes things such as

• all furniture,
• curtains,
• carpet/rugs
• duvets and pillows,
• any electrical items (e.g. bedside lamp),
• pictures,
• light shades, etc

Many inventories also include details of immovable things such as

• walls,
• doors,
• window frames
• light fittings, etc.

You should say a bit about each item, such as ‘good condition’, ‘new’, or ‘scratch on right hand drawer’. If there is anything valuable in the room, it might be worth taking a photo of it (or even a video). Keep receipts for all items purchased or repaired, just in case.

When the lodger comes to sign the lodger agreement (Day 15), you should show him round his room and check over the inventory with him. He will need to agree it – if you spot anything not on it (another scratch perhaps) make sure this gets written in. Then you and the lodger need to sign the inventory (one copy each), to confirm that it is agreed by you both. It should then be attached to the lodger agreement (one for each of you).

If you use photos, these should also be signed and dated (to prove that they are not pictures created at a later date), with copies for each of you, and also kept with the paper work. Be careful with photos, if you use them. Judges and arbitrators often say that they are useless, as they are frequently unclear, out of focus, with nothing to show the scale. A picture of a scratch on its own could be anywhere.

*****

What is your experience of the things in this section? Do you take a deposit? Did you need to make any deductions from it? Do you use an inventory and if so do you think it is worth the bother of drawing it up?

Taking in a lodger is not the same as taking in a tenant, and a formal lodger agreement is less essential. Many lodger landlords never use a formal written agreement, and operate on a handshake and mutual trust.

However although this is fine when things are going well, if there are any problems, it is a great help to have a formal agreement setting out your rights and obligations. Unlike tenancies, these things are not normally ‘implied’ into agreements by statute, so if there is no written agreement, it can be difficult to know how to deal with problems that may arise (for example see Day 19).

A formal agreement drafted by a lawyer is therefore a good idea, in addition to any ‘house rules’ list you may draw up (discussed on Day 14). The formal agreement will cover things you may not have thought of, and will protect your position.

For example, a helpful clause, often found in lodger agreements, makes the lodgers license to occupy the property end automatically, if he stops living in the property or fails to pay rent for two or more months.

Other standard clauses cover

• termination and notice periods,
• prohibitions about damaging the property and anti social behaviour, and
• details of any services you will be providing.

I also like to include a clause reminding the lodger that he is personally responsible for the behaviour of his guests (for example if they cause any damage).

The Unfair Terms in Consumer Contracts Regulations 1999
These are regulations which all of us who draft tenancy and other occupation agreements need to take into account when drafting. They apply to all contacts (not just those for occupation of a property) between someone acting in the course of a business and a consumer (you can read more about this on >> the OFT web-site here).

In most situations where a homeowner (or tenant) is letting a room to a lodger, these regulations will not apply, as they are aimed at businesses not people making a bit of money from renting out a room. However if you have several lodgers, particularly if it is your main source of income, you might be classed as a business. If so, the regulations *will* apply to you.

This is why, when drafting lodger agreements, I try to stick to the principles of the regulations, although perhaps not as rigorously as I would for a tenancy agreement.

Generally the thrust of the regulations is towards clarity and fairness. This is no bad thing, and if your lodger sees that the agreement you are using is evenhanded and doesn’t try to take advantage of him, he will be happier about signing it. It is also a good idea to try to get an agreement which is written in plain English as this will be easier for both of you to understand.

Practicalities
If you decide to use a professionally drafted agreement (and on balance I think this is best), be careful to fill it out properly, making sure that all spellings are correct, and that the property is correctly described.

As with all such agreements, there should be two copies. You should end up with one signed by the lodger, and he should end up with one signed by you. It may be easier if you both sign both of them.

If there are any other documents involved, such as house rules (Day 14), and an inventory (Day 16), these should be signed at the same time, and attached to the main lodger agreement (for example by stapling them together or using a treasury tag), which should refer to them.

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What is your experience of the things in this section? Do you use a formal lodger agreement? Have you had any situations where you have needed to refer to it to resolve a dispute? Are there any particular clauses you would want to see in a lodger agreement (for example if we provide one)?

Note: You can buy our standard lodger agreement in the Lodger Landlord shop for £12, or get it cheaper as part of our >> New Lodger Pack plus.

When you decide to take in a lodger, you need to keep very much in mind that this is a financial business relationship. You should therefore treat it that way right from the start. This does not mean that you should not be friendly with your lodger (although see Day 18). However, you must be very clear about what you will and will not allow in your home.

Consider in particular the following (which are in no particular order):

• What will the arrangements be for paying the bills? If the lodgers rent is inclusive of bills, you need to make sure that he is not running them up too much.
• What will the arrangements be for your shared living space? For example:
  • Will you let him cook in the kitchen or will you provide all the meals?
  • Will you let him ‘take over’ the kitchen sometimes for example if he wants to have a dinner party?
• What will the arrangements be for cleaning?
• What will the arrangements be for the use of the bathroom? For example, if there are several people living in the house, you might need a rota
• What about the television? What if you both want to watch things on different channels?
• Will you allow overnight visitors, and what is your position on partners staying over regularly? For example, you might want to consider limiting this to just a few nights per week.
• What about car parking?

There may be things about your property which your lodger will need to know about. Maybe your lavatory is sensitive to anything which is not lavatory paper being put down it. If so, your lodger will need to be told this and warned that you will expect him to pay for the plumbing expenses if he causes a blockage.

Before you let to a lodger for the first time, have a sit down and think about all these things. Make a list.  If you have had lodgers before, try to remember anything which caused friction in the past, and think about whether you should have a rule about it from the start.

Once you have done your list, you can draw up some house rules. This is not the same as the formal legal lodger license agreement which will be discussed on Day 15. Those agreements are drafted by lawyers to cover things which will apply to all lodger agreements.

The formal agreements will not therefore deal with domestic matters, such as how often your lodgers girlfriend can stay over, and which cupboard space he can use for his food, as these are things which will probably be different for every letting.

These domestic matters can be set out in a separate house rules list, which can be discussed, agreed, and signed at the same time as your lodger agreement. Then you will all know where you stand.

You don’t *have* to have a set of written house rules. A large number of lodger arrangements exist quite happily without any paperwork at all. However if you find you have an ‘awkward’ lodger, the fact that they have signed a set of house rules may be very useful to you, if they start being difficult.

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What is your experience of the things in this section? Do you draw up a set of house rules? What things do you put in them? Do you have any tips for other lodger landlords on house rules?

Rent
Todays topic is in many ways the most important, as for most people the main reason they are renting out a room is for the rent.

The first thing to consider is how much you are going to charge for your room. This will depend upon many things, among them:

• the location of your property – whether it is in a ‘posh’ or run down area, whether it is a convenient location for transport and amenities such as shops, and also whether there is much similar accommodation available nearby (the ‘scarcity value’)
• the size and attractiveness of the room you are renting
• whether you are able to offer facilities such as an en suite bathroom, broadband or off street parking
• any other services you provide, such as meals and cleaning

Have a look around and see what rent other lodger landlords are charging in your area. If you know anyone who takes in lodgers, have a word with them and see what rent they charge. If you let to students, the student accommodation office will probably help.

You also need to consider how you are going to be paid, and how frequently. Many lodger landlords get paid their rent in cash on a weekly basis. Others get paid monthly, perhaps by standing order. Decide which you prefer. Note:

• If you are going to be paid by standing order, you should get the standing order form signed by your lodger at the same time he signs the lodger agreement (Day 15).
• If you are going to be paid in cash, particularly if this is to be weekly, you should give your lodger a printed rent book. These can be bought from most large stationers, or online.

Housing benefit/Local housing allowanace
There are many people on housing benefit who will be looking for lodgings, for example young people, people recently separated or divorced, or people who need support of some kind. Therefore if you decide to accept lodgers on benefit, you should not have any problems finding them. But should you accept lodgers on benefit?

One of the problems about Housing Benefit, is that the benefit office are likely to pay less rent than you could get from a private paying lodger. If you are seriously considering a lodger on benefit therefore, you should check to see what you are likely to get.

Note that benefit is now paid under the Local Housing Allowance (LHA) system, and set rates will be given for your area.   See the >> LHA Direct web-site for this.  See here >> for more informaiton about LHA generally.

Another problem with benefit, is the time it takes for an application to be processed. This may result in a delay in your lodger receiving his benefit (which will mean in turn that you will have to wait). Note that your lodger will need to give the Housing Benefit office a written agreement, and they will probably refuse to process the application until this has been received (see Day 15 for agreements).

I would also mention here that the Housing Benefit office cannot change the terms of your agreement with your lodger. So for example if your lodger has agreed to pay you £80 rent per week, and you have accepted him as a lodger on this basis, but the benefit office will only make payments of £60 per week, this does not mean that your lodger’s rent is no longer £80 per week. He is still legally liable for the full amount, and there will be a shortfall which he will need to make up out of his own money. If he does not do this, he will be in arrears of rent. This may, for example, be a reason for you to ask him to leave.

However in most cases there is little point in asking a lodger to pay more than the benefit/LHA being paid to him, so effectively your rent will be limited to the Local Housing Allowance rate for your area.

Finally, the current rules provide for LHA to be paid direct to the lodger, and it is not normally possible (as it was under the old system) for the person receiving the benefit to ask for it to be paid direct to his landlord.  The only time this can be done is if the lodger is in rent arrears of eight weeks or more (when the landlord should contact the benefit office and ask for direct payment), or if the lodger can be classed as ‘vulnerable’.  Although some Benefit Offices will agree to make payment direct if the arrears are under 8 weeks – have a word with them, as attitudes vary.

(Note that there are indications that the rules may be changed to allow direct payment of LHA to landlords, but at the time of writing direct payment is not normally  permitted.)

Letter of Authority: it is a good idea to get your lodger to provide you with a letter of authority to the Housing Benefit office, so you can speak to them about your lodgers application. If you do not do this, they will refuse to tell you anything under the Data Protection Act.

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What is your experience of the things in this section?  What do you take into account when setting your rent for lodgers? Do you take in lodgers on benefit? What problems have you experienced with the benefits office or the Local Housing Allowance scheme?