What to Do If Your Tenant Wants a Lodger: A Guide for Runcorn Landlords

The number of households taking in lodgers has increased significantly in recent years. Rising living costs mean more tenants are looking to share their home to help manage bills. If your tenant already has a lodger, or asks for permission to take one in, there are several important points to consider.

What Is a Lodger?

A lodger is someone who lives in the tenant’s main home as a paying guest.

They usually share facilities such as the kitchen and bathroom and may also share meals or other amenities.

A lodger is not part of the tenant’s household, but they are also not a tenant themselves.

Their legal rights are far more limited than those of a tenant.

Is a Tenant Allowed to Have a Lodger?

Many tenancy agreements allow tenants to have lodgers, but only with the landlord’s consent.

As a landlord, you are entitled to refuse permission and you do not have to give a reason.

It is important to check the wording of your tenancy agreement before making a decision.

Should You Agree to a Lodger?

Whether to allow a lodger is entirely your choice.

One potential benefit is that sharing the property may help the tenant manage household bills and rent payments, reducing the risk of arrears.

In some cases, it may also make the property more attractive or justify a higher rent in future.

However, these potential benefits need to be weighed against the practical and legal implications.

Important Things to Consider

Before agreeing, consider whether there is adequate space in the property for an additional person.

You should also check whether taking in a lodger could turn the property into a house in multiple occupation, known as an HMO.

An HMO is generally defined as a property occupied by three or more people forming two or more households who share facilities.

Many HMOs require a licence from the local council, and licensing conditions can be complex and costly.

It is essential to check the rules that apply locally in Runcorn.

Mortgages, Insurance and Permissions

Allowing a lodger may have implications for your buy-to-let mortgage or landlord insurance.

Some lenders and insurers require notification if the occupation of the property changes.

Failing to inform them could invalidate cover or breach mortgage conditions, so it is important to check before giving consent.

Doing It Properly

If you agree to your tenant having a lodger, it is sensible to confirm this in writing.

The agreement should clearly state how many lodgers are permitted and any conditions that apply.

Your tenant should also have a written agreement with the lodger, setting out that they are a lodger, not a tenant, along with rent and notice terms.

Lodgers have limited rights and can usually be asked to leave with reasonable notice.

If the tenant leaves the property, the lodger must leave too.

If you are unsure, take professional advice to ensure everything is handled correctly.

If you would like advice on managing lodgers, tenancy agreements or property management in Runcorn, contact HomeSmart Estates on 01928 246 888.

If you know a landlord who would find this guide useful, feel free to share it.

Source: SpareRoom