Part-time lodger agreement: licence to rent a room

About this part-time lodger agreement

Use this part-time lodger agreement to rent a room in your property to one or more people on a part-time basis such as Monday to Friday or at weekends only. This agreement creates a licence to use the property, with far fewer legal requirements for the landlord than a lease or a tenancy agreement.

There is no requirement to have a formal written legal agreement with your lodger, but having one clarifies what the lodger can expect in the arrangement, and provides a reference point should any dispute occur in the future. Whether you’re renting a room to a work colleague for a month or two, or wanting a long term lodger arrangement, there are practical and legal advantages of having the rental terms in writing.

The law relating to this part-time lodger agreement

This license agreement gives a lodger permission to live in a property without creating a tenancy and thus giving the lodger greater rights to residence than necessary. A license should be granted on a short-term basis and renewed as necessary. Make sure the term is no longer than twelve months, and renew as often as necessary.

The landlord living in the same property as the “tenant” is one of the circumstances under the Housing Acts that automatically invalidates use of an assured shorthold tenancy agreement.

If you are claiming tax free rent allowance under the Rent-a-Room scheme the property must be your principal private residence. We suggest you seek tax advice if the rent you receive is above the threshold. You can still use this lodger agreement if the property is not your principle private residence but you will live there for some of the time.

Some helpful and practical pointers for lodger agreements

Mentioned in the help notes to this document (along with others) are the following pointers:

• Taking a deposit (a bond) can be done (and is covered in this agreement) but we advise that if you can avoid doing so, you should. A court may see a deposit as pointing toward this arrangement being a tenancy.
• Living with a lodger can be less pleasant once you’ve given him or her notice. Consider a short term. The expectation of a short arrangement will make giving notice easier (e.g. you can mention that you don’t plan to renew, rather than that you want your lodger to leave).

When to use this license

This part-time lodger agreement can be used in the following circumstances:

• A property owner renting out a spare bedroom
• For any type of property: flat, house, bungalow
• Can be used to rent more than one room in a property
• Use to sub-let a room if you rent under a tenancy agreement (subject to your agreement allowing sub-letting)

Unlike a standard lodger agreement, this agreement caters for situations where the lodger has another home elsewhere and he or she will live the landlord for defined, regular periods and will return home in between. The most common situation would be where the lodger lives beyond commutable distance to work and requires a home from home for all or part of the working week. However, the period could be every other week, specific days each month or any other arrangement you need.

It is not suitable if:

• The lodger will run a business from the property
• The lodger will occupy the whole property and the landlord lives elsewhere
• The lodger will live in the property on  a full time basis

Agreement features and contents

• Includes sensible, practical provisions to protect the landlord’s interests
• Full description of the property and the services that the lodger should expect to receive
• All likely provisions for restrictions on what the lodger may do in the property
• Rent period and amount