Are you thinking about getting a lodger?
Taking on a lodger can be a good option if you’re looking for a bit of extra income or just fancy the idea of sharing your home with another person.
But there could be some restrictions, so it’s important to think carefully about what’s involved.
What is a lodger?
Let’s start with the basics. A lodger is someone who isn’t part of your immediate family but lives with you in your home. Typically, they’ll rent a room from you but share communal living spaces like the kitchen or living room.
It’s important to note that if you don’t share any living space with your lodger, they’ll have more rights over the space they rent from you. For example, if you’ve converted an annexe into a self-contained bedsit.
Check you’re allowed a lodger
Depending on your circumstances, you may need permission to take on a lodger.
- If you’re a long leaseholder, check the terms of your lease
- If you’re renting a property, ask your landlord for permission
- If you own your property but have a mortgage, you’ll need to tell your lender
Remember, certain bills and benefits, such as the Council Tax single person discount, can be affected if you take a lodger. For more information on this, visit the Citizens Advice Bureau.
Make sure your home is safe
For your own benefit as well as your lodger’s, it’s essential that your property is safe.
Make sure you’ve installed working smoke detectors and fire alarms, and get any gas appliances checked annually by a Gas Safe registered engineer.
Review your home insurance
Let your home insurance company know if you plan to take on a lodger, as it’s likely to affect your policy and coverage. This is because having a lodger could increase the likelihood that you’ll need to make a claim.
However, it’s important to remember that if you have a lodger and there’s a theft (but no obvious sign of a break-in), an insurance claim is likely to be refused. Likewise, your lodger needs to know that your home contents insurance won’t cover their possessions.
Remember, if you don’t tell your insurer that you’ve taken on a lodger, claims on your policy could be rejected.
Finding a lodger
So, you’ve got the room ready to rent out, you’ve checked how your finances will be affected, you’ve completed your health and safety checks, and you’ve contacted your insurer.
Now, you just need to find someone to move in. Here are a few good places to start -
- Local noticeboards, newspapers and social media communities may have adverts from people looking for rooms, or you could post an ad yourself.
- Ask your friends or neighbours if they know someone who might be interested
- Check out online websites such as Spareroom
Get to know your lodger and be clear on ground rules
If you’re going to share your home with someone, it’s important that you’ll get on well.
One idea could be to meet any potential lodger somewhere safe for an informal ‘getting to know you’ chat. A quick coffee in a busy café could be ideal. Make sure you let someone else know where you’re going and who you’re meeting, just in case.
When you do meet, it’s good to ask questions like:
- How much time would they expect to spend in the house?
- What do they tend to do with their evenings?
- Do they have any hobbies?
- Do they have a partner?
- Will they want to use the kitchen to prepare meals?
It’s a good idea to explain any house rules up front and check that your potential lodger is happy to agree to them.
When you’ve found the right person, ask for references from their bank or building society and from their previous landlord. Follow up with a phone call to make sure what’s been said in the written statements is correct.
Put it down on paper
Whether you’re renting a room to someone you know or a relative stranger, it’s always best to have a written agreement. This will help you to avoid any misunderstandings and, if something does go wrong, you’ll have the agreement to refer to.
Some of the things to include in your written agreement:
- A statement of the deposit paid (for example, this could be equivalent to a month’s rent, or six weeks’ rent).
- Details of the rent required, when it’s due and how it’s to be paid. Look online to get an idea of what people are charging for similar lodgings in your area.
- An acknowledgement that there may be rent reviews and increases, for example, on a yearly basis.
- Details of how much notice is required by both parties.
- An outline of what meals and other services are to be provided, if any.
- An outline of what you’re both expected to pay for and how you’ll split bills.
- Details of which rooms and facilities your lodger is allowed to use.
- An inventory of your lodger’s room. This will make questions over whether the full deposit should be refunded when they move out more straightforward.
For more information on things to consider when getting a lodger, head to the Citizens Advice Bureau.
