Taking in a Lodger Under a Licence Agreement: What You Need to Know

If you have a spare room in your home, taking in a lodger can be a great way to earn some extra income. However, before you take the plunge, it’s important to understand the legalities and responsibilities of being a live-in landlord.

One key document you need to be familiar with is the licence agreement. This is different from a tenancy agreement, as it does not give the lodger exclusive possession of the room. Instead, it grants them permission to occupy the room in exchange for rent and other obligations, such as keeping the room clean and respecting house rules.

Here are some key things to consider when taking in a lodger under a licence agreement:

1. Check your mortgage or tenancy agreement

If you own your property, check your mortgage agreement to make sure you’re allowed to take in a lodger. If you’re a tenant, you’ll need to get permission from your landlord before subletting a room.

2. Set clear expectations in the licence agreement

Make sure the licence agreement contains all the necessary terms and conditions, including the rent amount, payment schedule, length of the agreement, and any house rules you want the lodger to follow. Be clear about your expectations for cleanliness, noise levels, and any other important considerations.

3. Screen potential lodgers carefully

Before inviting a lodger into your home, make sure you meet them in person and perform background checks to ensure they’re trustworthy and responsible. You can also ask for references from previous landlords or employers to get a better sense of their character.

4. Make sure you have the right insurance

As a live-in landlord, you’ll need to make sure you have the right insurance coverage. This may include landlord insurance, home insurance, and public liability insurance, depending on your specific situation.

5. Be aware of your legal responsibilities

As a live-in landlord, you have certain legal responsibilities towards your lodger. These include providing a safe and habitable environment, respecting their privacy, and giving reasonable notice before entering their room.

Taking in a lodger under a licence agreement can be a great way to earn extra income and make use of your spare room. However, it’s important to understand the legalities and responsibilities involved to ensure a positive and mutually beneficial arrangement for both parties.