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.

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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?

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?