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 Regulations
These are regulations (now part of the Consumer Rights Act 2015) 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.
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.
I am in Australia and my son has just taken a lodger/friend into our flat in London.
I do not have a paypal account. Please inform me as to how I can pay for you to email me a Lodger Agreement as soon as possible. I need the Agreement sent quickly please.
Thank you and oblige,
Charryce Nixon
Hi Charryce
Glad you would like one of our agreements!
The bad news is that I can only take payment by pay pal, but the good news is that you do not need a pay pal account to make payment.
You can pay using your credit or debit card via the pay pal system.
The lodger I have found would like a minimum term put into the lodgers agreement. Is this ok or is it then steering towards the tenancy route?
Putting a minimum term into a lodger agreemnet won’t turn it into a tenancy, no. But depending on how long the minimum term is to be it may or may not be a good idea.
For example if this lodger turns out to have revolting personal habits, are you sure you want to be stuck with him for a year? On the other hand after going through all the trouble of finding and referencing a new lodger you won’t want him to swan off after a couple of weeks.
My lodger left the property wihout giving notice on the 27th of August. His employer had paid July and Augusts rent for him and I did get a signed agreement from the lodger agreeing to give a months notice. He is now refusing to pay the amount due to cover the notice period. He has not left a forwarding address however i do have his employers details. Am I within my rights to ocntact his employer as he broke the agreement during the rental period that they had paid for him??
It sounds as if you have a claim for the months rent in lieu.
Why not issue proceedings against him, apply to the court when you issue proceedings, for the proceedings to be served on him at his employer by way of substituted service, and then if you get judgement, you can apply for an attachment of earnings order.
I have a lodger for the last three months, he hasn’t pay any rent for the last two months, i gave him a notice to live a month ago but he is not doing any thing about it is always aboiding me comes late and every time I ask when he is going says, tomorrow. I would like to know what to do next? shall I take his thing out and change the locks? I don’t know what to do he is very strong, big and I am scare of him.
Thanks for your help.
mireya
Please see the posts on this blog about problem lodgers and eviction of lodgers. There are quite a few. For example http://lodgerlandlord.co.uk.gridhosted.co.uk/2010/02/19/day-19-how-should-you-deal-with-problem-lodgers/, and http://lodgerlandlord.co.uk.gridhosted.co.uk/2010/02/20/day-20-how-do-you-evict-a-lodger-who-wont-go/
hi tessa
thanks very much for the agreement i have just purchased. Could i please ask one question, is the “period” as critical as it can be in an AST? our lodger will be staying until June but we are uncertain of the actual date , can i run the licence agreement from say today 10 nov – june 30th 2011. Or does does the agreement roll on until notice is given by either party? ie is it better to sign a6 month agreement
Dear Ms Shepperson, just the information I was looking for. My son is a Merchant Seaman and therefore is away from his home for long periods at a time. This would mean his Lodger has the house to himself for these periods. I feel that a written “Lodger Agreement” would be very appropriate in these circumstances. What is your fee for providing me with a copy of the Agreement you recommend. I can fill in the “blanks”
Simon, the agreement provides for early termination if you don’t cross part of it out (this is explained in the instructions), so I would suggest you put in the period you think you want the agreement for but allow it to be ended early if necessary.
Bruce – you can buy my agreement here: http://lodgerlandlord.co.uk.gridhosted.co.uk/shop/
Hi Tessa,
I am planning to take a lodger who is also a friend, but then am planning to let the whole house as a tenancy when I go abroad for 6 months maybe more later in the year (and he will help me get ready for the more stringent tenancy requirements). The plan would be to use a letting agency, and get another person for the other room with him remaining as one tenant. However, I would probably allow him more leniency than the other tenant eg lower rent, grace period if he becomes unemployed – currently he has a temporary job; a)as he is a friend b)with him taking more responsibility for maintainance, keeping an eye on things. How does this stand legally?
I don’t see a problem with this so long as he is a good person and does not take advantage of your trust.
Note that I have a web-site http://www.landlordlaw.co.uk which has a lot of information which will be helpful to you as a prospective landlord. Membership is just £20 per month. There is also a forum where you can ask questions.
Thanks very much for your help on this and the other issues I posted on today. I’ll have a look at landlordlaw.co.uk. And thanks for your really useful site and prompt replies.
Best wishes,
Kath
Hi Tessa,
Really useful site – many thanks.
Can I ask a question pse – we have put in an offer to buy for my student son a 4 bed house, to try and reduce his student fees. We are worried about applying for an HMO (I really think it should be a HMO)as it will affect resale values, so my son is thinking abut letting to 2 lodgers. We have become concerned though about the reference to a 3 storey house – as my son’s house is 3 storey. Does a 3 storey house necessitate a hmo? We clearly hope not, especially as my son’s house is only 4 years old and is up to date re current building regs.
Could you give me a view re our position before i speak to the local authority?
Second question, my son (in his 3 storey house) has a regular student girlfriend who he would like to move in with him. If he posed the question, and she resided with him for no rent, but contributed towards service costs, would this be considered a 3rd tenant and thus take him into hmo territory?
Very keen for an early reply as we have offered a price for the house (before viewing your site),
Many thanks
Mark
@Mark
My understanding is that if there are just two lodgers it cannot be an HMO. http://lodgerlandlord.co.uk.gridhosted.co.uk/2010/02/07/day-7-will-taking-in-a-lodger-turn-your-property-into-an-hmo/
If the girlfriend was living at the house as his partner, then I don’t think she would count as one of the lodgers, as they would form one ‘household’.
But please don’t just rely on what I say, you need to check with your local authority.
My landlord ask me to leave with a written notice dated 7/7/2011. The rent was due the 6/7/2011. In the agreement it supposed to be one month notice to leave. I have not paid yet because i think he has to give me more time to leave after 4 years of living in the same property. I am a lodger and i paid the rent very ok until 2 days ago when i found out that somehow i overpaid 2 weeks. I pay rent every 4 weeks. Who is right, what shall i do. I just need 2 months to evacuate peacefully and legally. Thanks a lot