If you wish to offer a room in your house for rent, the
arrangements for setting up an agreement are much less formal than
offering a self-contained property.
Someone who rents a room in a person's house and shares
accommodation with them is referred to as a licensee.
Accommodation includes rooms such as a kitchen, lounge or bathroom
but does not include hallways or stairways. If a landlord shares
only those rooms that are required for access, it is likely to be a
tenancy rather than a licence that is offered. There are other
circumstances where a landlord offers a licence rather than a
tenancy (examples include some hostel accommodation and holiday
lets).
This information is intended to deal only with the situation
where someone becomes a landlord by offering a room to rent in
their house. This is commonly referred to as lodgings. It is
important for the landlord to be certain if they are offering a
license and not a tenancy because the occupier's rights are very
different in each case. If you are in doubt, contact the Council's
Housing Advisory Service before letting your property.
The Contract
As soon as a person agrees to accept rent, a legal contract is
entered into. This is the case even if there is nothing in writing.
A written contract has several advantages, even if the landlord is
granting a license. In particular:
It makes it clear exactly when the lodger moved in and the terms
for paying the rent. In most cases, the agreement will be on a
week-to-week basis. If a written agreement makes it clear that a
specific amount of rent is due each week on a particular day, it
will help to avoid any potential disagreements over money. It
allows the landlord to add conditions. For example, many landlords
with lodgers may not want someone who smokes or may not wish to
permit overnight guests.
The contract can be a simple letter - there is no specific
wording required in law and although the landlord can offer to rent
a room for a specific length of time, there is no requirement to do
so.
Standard contracts are available from legal stationers or from
solicitors.