A lodger is someone who rents a room in your home and shares your facilities. The lodger does not have exclusive possession of any part of the property. Family members are not considered to be lodgers. If you decide to have a lodger you must get written permission from us. Your Tenancy Agreement states that you have the right to take in lodgers but you need to avoid overcrowding.
A few key points:
- A lodger will not have any security of tenure
- You are responsible for the conduct of your lodger in accordance with your tenancy agreement (‘your responsibility for others’)
- The lodger will stay at your home as a member of the household
- Any income from taking in a lodger must be declared to the Local Authority, HMRC and the Department of Works and Pensions (DWP).
The lodger can only continue to live in your home while you have a tenancy. If you give notice to end your tenancy you will have to give your lodger notice to leave on or before your tenancy ends.
What you will need to provide for your lodger
You need to provide your lodger with a room; usually a furnished bedroom and use of other communal areas such as the kitchen and bathroom. It is up to you to decide whether you wish to provide additional services (meals, laundry, cleaning) as part of your agreement with the lodger.
If things do not work out or you need the room back
You are responsible for asking your lodger to leave if you need the room back for any reason. If they refuse to leave you may need to take legal advice; you may also have to take court proceedings to legally evict them. When you take in a lodger we recommend that you have a written agreement that you both sign and agree to.
Income tax payable on the income received from a lodger
If the income from letting a room exceeds an amount known as a threshold, then you may also be liable to pay income tax. We recommend you obtain independent advice about your tax implications.
Council Tax
If you claim single occupants discount for Council Tax you will no longer be eligible for this. We recommend taking independent advice about the Council Tax implications.
Home insurance
We recommend contacting your home insurance provider to make sure you are still covered and inform your lodger if they require their own insurance.
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Your benefits
If you take in a lodger you will need to inform your local benefits agency immediately. Taking in a lodger may affect the amount of benefit that you are entitled to. If you do not tell them, you may end up having to repay an overpayment or face legal action.
Lodger background checks
It is a good idea to do a background check on your lodger for your own safety and security. For example, you may wish to get a reference from their previous landlord. You may also wish to carry out checks to see if they can afford their rent. The extent of the checks you carry out may differ from one person to the next and it is for you to decide what may be appropriate.
‘Right to rent’ checks
‘Right to rent’ is to do with the right to live in the U.K. It is not the same as the right to claim benefits. These checks are a legal requirement that must be made to ensure that people who are classed as illegal immigrants are unable to establish a settled life in England. These checks are required on all new lettings to social housing adult residents and anyone who joins their household such as a lodger.
You must provide us with a copy of the documents your lodger has provided as part of the ‘right to rent’ checks. A list of the acceptable documents are available on the Government website.