How much paperwork and record keeping is involved?
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
- Gas safety inspection certificate, if you have any gas appliances
- Receipts and other documentation (e.g. instruction booklets, warranty documents etc) relating to the furniture and items in your lodger’s room
- Any PAT certificates for electrical appliances
- HMO license documentation if you need to get an HMO license (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
- Interview notes and the form completed at the interview
- 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, together with any ‘house rules’, both signed and dated (by the lodger – he should have copies signed by you)
- Any inventory used, 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
That is quite a wedge of paperwork!
Your Law Store
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.
Lodger agreements and packs for Welsh lodger landlords are here.
All contain guidance notes.
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 your lodger misses a few weeks, it might be difficult to work out exactly how much he owes you.
Significant events: 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 lawyer’s 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 contract 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.
Readers Questions
Q: Isn’t it against the data protection rules to keep data too long? What do you do if your lodger asks you to destroy data?
A: You can keep data about your lodger while the lodger agreement is current. Indeed you should. For example, although you can take advantage of the tax-free ‘rent a room’ scheme, that does not mean that you may not be subject to a tax investigation in which case the Revenue will want to see details of your lodger agreement and income. Financial details should be kept for at least six years.
Then although it is unlikely, your lodger may want to bring a legal claim against you in respect of your lodger arrangement. If you have destroyed all your paperwork you would not be able to defend the claim! So you should always keep paperwork for at least six years, whatever your lodger may say. You are allowed to retain data in these circumstances under the Data Protection rules.
Lodger paperwork
All of the paperwork you need when renting a room to a lodger can be purchased on our You Law Store website.
Important note
This guide ONLY deals with lodger agreements where you are renting a room to a lodger in your own home.
If you require information about tenancies with resident landlords and Welsh occupation contracts, you need the Landlord Law site.
