Taking in a Lodger - An Essential Legal Guide

"...an inexpensive guide which is worth it’s weight in gold if you want to learn all there is to know about lodging landlording very quickly."
Tom Entwistle, Landlord Zone

Are you looking to rent a room and take in a lodger?

The good news is that renting a room in your own house can earn you money. The better news is that this is tax-free money under the ‘Rent a Room’ scheme. And the best news is that renting a room to a lodger is easy. 

Taking in a lodger can be a straight-forward, stress-free process from start to finish. Your time sharing your house with your lodgers should be a pleasure. And it will always be… as long as you follow some basic rules.

This essential legal guide to Taking in a Lodger gives you everything you need to rent a room to a lodger whom you are comfortable with. So stop thinking about it and rent a room today with this short but clear guide to lodgers and renting a room.

Your essential legal guide covers:

The HM Revenue & Customs Rent a Room Scheme
Find out how you can collect up to £4,250 every year from your lodger and keep this rental income tax-free.

How to find a lodger and the security checks you should perform
We provide an example Lodger Application Form and discuss what level of security checks are advisable, and tell you how much these will cost and how you can simply do them.

Renting a room and Health & Safety compliance
We list the standards and laws that change when your house contains a lodger and tell you what you need to do to comply with these laws.

Lodgers and Insurance
We discuss the ways that renting a room to a lodger may affect your insurance policy or mortgage.

The Lodger Agreement
We walk you term-by-term through the Lodger Agreement so that you are comfortable and clear with what it is that you are agreeing to in a Lodger Agreement.

Time to move on?
We discuss the notice you need to give your lodger and the best way to end a Lodger Agreement. We also discuss what you should do if things go wrong and provide template notice letters to be given to problem lodgers and those in rent arrears.

Taking in a lodger is easy. And it gives you an instant tax-free income. Find out just how easy it should be with our essential guide to Taking in a Lodger.

About the Author

Tessa Shepperson is a solicitor specialising in residential landlord and tenant work, concentrating on legal work for private residential landlords. She is also the author of Residential Lettings: The Complete Guide and  The Essential Landlord's Guide to Tenants’ Rights, which are also published by Lawpack..

Lodger and Tenancy Agreement Links:

• Lodger Agreement
• Lodger Letters: Bundle of 12 letter templates for just £9.99
• Lodger Application Form
• Starting Up and Running a B&B Guide
• Notice to Terminate a Lodger Agreement
• Notice to Terminate a Short Assured Tenancy Agreement (Scotland)
• Section 21 Notice (England and Wales)
• Section 8 Notice (England and Wales)

Taking in a Lodger contains:

• Money and tax - the Rent a Room Scheme explained
• Finding and vetting your lodger
• Health and safety issues for renting a room
• Insurance and Lodgers
• The legal and practical considerations when taking in a lodger
• ‘Houses in multiple occupation’ (HMOs) and lodgers
• Standard terms in a lodger agreement
• At the end of the lodger agreement
• How to deal with problem lodgers
• Things to do when your lodger leaves

PLUS:

• Example Lodger Application Form 
• Example letter template to insurance company
• Example lodger reference letters
• Standing order form template
• Lodger check-out letter
• Standard letter giving notice
• Example letter to lodger in rent arrears