The Rent A Room Scheme Tenancy Agreement

Why a Lodger Agreement May be Useful

Aug 19, 2009
Carol Finch

The Lodger Agreement for the Rent a Room Scheme - Photo by kevinrosseel

More people are taking a lodger into their homes to take advantage of the tax-free Rent A Room scheme. Is a lodger agreement really necessary?

The Government led Rent A Room scheme allows people to take a lodger into their homes and to earn money in rent without having to pay tax on it. This allows a maximum rental income of £4,250 a year which could be a useful sum.

The financial side of this may look attractive but there are other issues to consider here. Many people will rent a room to a lodger they do not know and no matter how stringently they check them out there could be problems down the line. Even renting a room to a friend can turn out to be problematic. A lodger agreement may, therefore, play an important part in this all working out.

What is a Lodger Agreement?

A lodger agreement (sometimes also called a lodger tenancy agreement) is a formal document that outlines any rules, regulations and conditions of this kind of rental. This document is designed to protect both the landlord and the lodger by making things clear from the start. So, for example, an agreement might cover:

How much rent will be charged.
When and how the rent must be paid.
What the rental agreement gives the lodger in terms of access/space etc.
What is and isn't covered by the rent in terms of bills etc.
Notice/termination periods.
House rules and details of anything the lodger/landlord shouldn't do (for example, the lodger shouldn't throw wild parties when the landlord is away and the landlord shouldn't prevent the lodger from accessing areas of the house that they are paying to access).

Is a Lodger Agreement Necessary With the Rent a Room Scheme?

Lodgers that people take in under the Rent A Room scheme (or indeed under any standard lodging system) don't have the same rights as standard tenants. It isn't therefore absolutely essential to put a lodger agreement in place and many landlords simply don't get round to doing this. But, a full tenancy agreement may not be essential but it could be useful.

A landlord can simply ask their lodger to leave if things don't work out. The statutory rights of a lodger are not the same as those given to assured tenants, for example, so they should simply then leave subject to any agreed notice periods. But, things may go more smoothly with a formal lodger agreement in place before the lodger actually moves in. This way both the landlord and the lodger know where they stand and this may prevent any problems from happening in the first place.