Lodgers and Tenancy Agreements – What Tenants Need to Know

Yes, a tenant can have a lodger in the UK, but there are several important considerations and legal obligations that need to be met. Whether or not you, as a tenant, are allowed to have a lodger depends on your tenancy agreement, the type of tenancy you hold, and your landlord's permission. Below is a detailed guide on having a lodger as a tenant and what you need to be aware of.

Can a Tenant Legally Have a Lodger?

1. Check Your Tenancy Agreement

Your tenancy agreement will usually specify whether or not you can have a lodger. Many tenancy agreements explicitly state that tenants need written permission from the landlord before taking in a lodger. Here's what to consider:

• Assured Shorthold Tenancies (AST): If you have an AST (the most common form of tenancy in the UK), the agreement may prohibit or limit subletting or taking in lodgers without prior permission from the landlord.
• Assured Tenancies or Rent-Controlled Tenancies: In other types of tenancies, there may be more flexibility, but again, it depends on the contract terms.

If the agreement forbids taking in a lodger, then you must seek written permission from your landlord to avoid breaching the terms of your tenancy, which could lead to eviction.

2. Seek Landlord’s Permission

Even if your tenancy agreement does not mention lodgers, it's always advisable to get the landlord’s consent in writing. This protects you legally and ensures your tenancy remains secure. Landlords often agree to allow lodgers, but they may want to review the situation, especially if it could affect the property (such as wear and tear or increased utility usage).

If your landlord refuses permission, you cannot legally take in a lodger without risking breaching your tenancy agreement.

3. Social Housing Tenants

If you are a tenant in social housing or council housing, the rules might be stricter. In many cases, social housing tenants are required to ask for permission from the housing authority or council before taking in a lodger. Additionally, having a lodger may affect any housing benefits you receive.

Types of Tenants and Lodger Rights

A lodger is someone who lives with you in your rented home but does not have the same legal protections as a tenant. Here are the distinctions to keep in mind:

• Lodger vs. Subtenant: A lodger lives with you, often in the same household, sharing communal areas like the kitchen and living room. A subtenant has more independence and may have exclusive use of a part of the property. Taking in a subtenant often requires different legal steps, including potentially subletting, which may require more explicit landlord permission.

• Lodger Agreement: If you take in a lodger, it is good practice to have a written agreement outlining the terms, including rent, use of communal spaces, and notice periods. A lodger’s agreement helps to avoid disputes and clarify their legal status.

Rights and Responsibilities When Taking in a Lodger

1. Impact on Rent and Housing Benefits

If you receive housing benefits, taking in a lodger could reduce your entitlement. Lodger income may be taken into account when calculating your benefits, so it’s important to inform the relevant authorities if you take in a lodger to avoid overpayment of benefits.

2. Tax Implications (Rent a Room Scheme)

If you rent out a room to a lodger, you might be eligible for the Rent a Room Scheme, which allows you to earn up to £7,500 per year tax-free from letting out a furnished room in your home. This scheme applies only to live-in landlords (including tenants who let out a part of their rented home).

To take advantage of the scheme:

• The income must come from renting a furnished room.
• You must live in the same property as your lodger.

3. Safety Regulations

As the primary tenant, you have responsibilities towards the lodger, including:

• Gas Safety: You must ensure that any gas appliances are checked annually by a Gas Safe-registered engineer.
• Fire Safety: Ensure that smoke alarms are installed, and the property meets fire safety regulations. This may include having fire exits or extinguishers if necessary.

Landlords often share these responsibilities, but it’s important to clarify who is responsible for what.

4. Renting to a Lodger: Right to Rent Check

By law, you must ensure that your lodger has the right to rent in the UK. This means you are required to check their immigration status and ensure they are legally allowed to live in England. Failing to do so could result in fines or legal penalties.

5. Household Impact

Taking in a lodger means sharing your living space. It’s important to establish clear guidelines and expectations for shared areas, guest policies, and other household rules to ensure that living arrangements remain smooth.

What Happens if You Take in a Lodger Without Permission?

If you take in a lodger without your landlord's permission, you could be in breach of your tenancy agreement. This may result in:

• Eviction: Your landlord could serve you a notice to leave for breaching your contract.
• Legal Consequences: You could lose certain legal protections and be liable for any damage or additional costs incurred due to having a lodger without approval.

Summary

In the UK, a tenant can have a lodger, but there are some important steps to follow:

• Check your tenancy agreement for any clauses about taking in a lodger.
• Seek written permission from your landlord.
• Follow legal obligations, including checking the lodger’s right to rent and adhering to safety regulations.

If you follow the necessary procedures and communicate with your landlord, having a lodger can be a great way to share costs and make the most of your living space. Fraser Bond can offer guidance on tenancy management, property rules, and understanding landlord-tenant obligations.