Lodger Information Pack

This pack is intended to be used by council and housing association tenants who are
thinking about letting a spare bedroom in their home to a lodger. The pack takes the
form of:
a series of questions and answers about things you need to think about and
do before you let your spare room to a lodger
a lodger licence agreement which you can use to establish an agreement
between yourself and your lodger.

Lodgers some basic information

What is a lodger?
A lodger is a person who rents a room in someone elses home. Usually there is a
formal arrangement in place that sets out the rooms that the lodger can use and
those that they share with the rest of the household (e.g. the kitchen, living room and
bathroom) for an agreed payment.
Close family members such as a parent, step parent or parent-in-law, a son or
daughter, step son or step daughter, a son-in-law or daughter-in-law, a brother or
sister are not normally classified as lodgers.
Do I need permission to take in a lodger?
As a tenant of a social landlord (either a council or a housing association) if you hold
a secure tenancy you have the right to take in a lodger, but your landlord needs to
provide you with their consent. If you are an assured tenant it is highly likely you
have the right to take in a lodger but you will require the housing associations
consent.
In both instances it is a good idea to let your landlord know that you are thinking
about taking in a lodger, as they might be able to offer you help and advice.
Things to think about when you consider taking in a lodger
Before you ask for your landlords agreement to take in a lodger, you might want to
think about whether youre prepared to have a lodger living in your home and
whether its right for you.
Having a lodger live with you means that youll be sharing your home with a stranger.
If you live alone this might mean that you will have some company but it also means
thatll youll be giving up some of the privacy you enjoy at the moment. You need to
ask yourself whether you are prepared to do this?
If you have children you might want to consider whether you want a stranger living in
your home, particularly if you dont know a great deal about their background. As a
parent or guardian of a child or children, your first duty to them is to ensure that they
have somewhere safe to live.

If you do want to have a lodger living with you, providing you with another source of
income, it is important that you choose who lives with you very carefully.

Getting ready to take in a lodger

Who should I inform that Im going to be taking in a lodger?

If you are thinking about taking in a lodger and after you have received consent from
your landlord, you should contact your Home Contents Insurer and inform them that
you intend to take in a lodger. They may want to obtain certain information from your
potential lodger and they might in some circumstances adjust your insurance
premiums.
It is important that you contact your insurer and advise them that you are taking in a
lodger. If you dont and you make a claim on the policy you might find out that the
contents of your home might are not covered.
Once you have taken in a lodger you need to let the following organisations know:
Council Tax if you are a single person and receive a single person
discount on your Council Tax you need to let the Council Tax section know
about your lodger. If your lodger is a student they will not be considered to
be a full time occupant and you will not lose your single person supplement.
Department of Work and Pensions (DWP) if you receive benefits you will
need to let the DWP know that you have a lodger and the amount you are
paid each week by your lodger. If you dont advise the DWP that you are
receiving additional income from a lodger, you will be committing benefit
fraud.
Housing Benefit if you are on a low income and receive Housing and
Council Tax Benefit, you will need to let the Housing Benefit Team at your
council know that you have a lodger and the amount you are paid each
week. If you dont advise the Housing Benefit Team that you are receiving
additional income from a lodger, you will be committing benefit fraud.
What condition should my home be in?
When you let your spare room to a lodger, your home should be clean, carpeted and
in good decorative order throughout. The spare room should be bright and cheerful
and spotlessly clean. If it is not it is unlikely that someone will want to come and live
in your home.
You might want to hang pictures or posters in the spare room or allow the lodger to
hang their own pictures of posters. If you dont want the lodger to use nails or blue
tac, you should provide a noticeboard or pinboard.
You should take photographs of the room that the lodger will use before you let it, to
record its condition.
What furniture should I provide my lodger with?
As you are going to be letting the room to the lodger on the basis that it is furnished,
you will need to ensure that you have the right furniture in the room.
The furniture you provide in the room will depend on the size of the room but you
should provide the following:

a comfortable bed and mattress. It is a good idea to fit a waterproof cover

over the mattress
a desk or table with lamp and chair
shelves on the wall or a small bookcase
a bedside table and lamp
a wardrobe and chest of drawers

All of the furniture you provide must comply with the Furniture and Furnishings
(Fire)(Safety) Regulations 1988. If youre buying new furniture this wont be a
problem, but if youre using older furniture it is a good idea to check for labels to
ensure furniture is compliant with the regulations. (Labels can be found on items
such as padded headboards, sofas, mattresses, pillows, cushions, cloth covers on
seats, curtains).
It is best to buy new electrical items and make sure that you keep the receipts and
instructions. If you cant afford new items, you should get them tested by a qualified
electrician but this could be expensive.
You will also need to provide the lodger with access to pots and pans, cups, plates
and cutlery and you should make some space for them to store their food in your
kitchen cupboards and fridge and freezer.
You should provide an inventory (a written record) of the items you provide the
lodger with, noting their condition. You can find a copy of an inventory at the end of
this pack.
Should I establish house rules?
It is important to set some rules about what you will and will not allow in your home,
so before you let your spare room to a lodger you need to give this some thought.
For example you might not want a lodger to smoke in the property or to keep a pet.
Whilst you dont want to develop a list of rules which is too long you will want to set
out the standards of cleanliness and tidiness you expect of your lodger.
You will want to tell a potential lodger about your house rules when you meet for the
first time, as they need to know whether they would be comfortable living in your
home.
Should I use a lodger agreement?
It is important that you and your lodger sign a lodger agreement, so that your rights
and responsibilities as the landlord and the rights and responsibilities of the lodger
are clearly set out.
It is also important that you sign a lodger agreement if your lodger needs to claim
Housing Benefit to help them pay their rent. Your lodger will need to provide a copy
of the agreement to the Housing Benefit Team. A copy of a Lodger Agreement is
part of this pack. You and your lodger should sign two copies and each keep a copy.

How much should I charge my lodger?

You can charge whatever rent you feel a lodger will be willing to pay. One approach
is to look at adverts in newspaper and on the internet and charge an amount that
reflects the average weekly rent in your local area.
Things to bear in mind when youre setting your rent:
if youre a taxpayer you can earn 4,250 each year (or 81.73 a week) tax
free under the Governments Rent a Room Scheme. If you receive more
income than this you will need to declare it on a tax return
if you are thinking of letting your spare room to someone who receives
Housing Benefit to help them pay the rent, you need to be aware that if the
rent that you charge is greater than the rent allowed by Housing Benefit,
your lodger will have to fund the shortfall themselves. You can ask your
Housing Benefit Team for the Local Housing Allowance shared room rate
which will tell you the maximum rent that your lodger will be able to claim.
Should I charge the lodger a deposit?
A deposit is a payment taken by the landlord to hold as insurance against the lodger
damaging the property or failing to pay their rent. If the lodger leaves the property in
the same condition as you let it to them and they did not develop any rent arrears,
the deposit needs to be returned to them when they leave your home.
It is a good idea to ask your lodger for a deposit. However, you must remember that
when your lodger gives you their deposit, you are holding it on their behalf and it
would be a good idea to put the deposit in a savings account.
For lodgers on low incomes or benefits, affording a deposit could be a problem.
Some organisations provide bonds or guarantees for lodgers, which will cover any
damage or loss you experience should you need to make a claim. You need to
consider whether you consider this to be an acceptable form of security.

Finding a Lodger

How should I go about finding a lodger?

There are many ways of finding a lodger and these depend on where you live and
the type of lodger you are willing to have living in your home.
You need to think carefully about who you want to live in your home as a lodger.
Renting a room is a business transaction between you (the landlord) and the lodger.
If you rely on word of mouth to find a lodger, this is likely to mean that the lodger is a
friend of a friend or a friend of a family member. This might cause you some
difficulties if you have to ask the lodger to leave, for example if they fail to pay or they
behave badly.
If you live in an area where there is a university you might want to advertise for a
lodger at the accommodation office of the university. Please note they might want to
inspect your home before they advertise your home to students. You might want to
consider putting an advert on notice boards in colleges and place adverts in shop
windows in areas where students live.

If you live close to a hospital you might want to consider contacting the hospital to
find out whether they maintain a list of lodgings for staff and relatives of patients and
whether you can go on that list. You will also want to put adverts on notice boards in
the hospital.
Similarly, if you live close to a large employer you might want to contact them to find
out if they need lodgings for staff or visitors to the company and if they do you can
ask to go on to their database.
You can advertise for lodgers in local newspapers, in local shops and on the internet.
There are a number of internet sites which aim to help you find a lodger for example
http://www.spareroom.co.uk/ and http://uk.easyroommate.com/. You could consider
using these.
In Wales a website has been developed to match landlords with lodgers called
House Share Wales http://www.housesharewales.co.uk/. Not only does House
Share Wales provide you with an internet site to find a tenant, they also provide
accommodation brokers who can direct you to organisations who can help you put
an advert on the website and help you find an appropriate lodger. The broker for
North East Wales and Powys is based in Cefni Lettings and can be contacted on
01341 423266.
How should I select a lodger?
It is always a good idea to meet with people who respond to your adverts for a
lodger. The meeting should ideally take place in your home. This gives the potential
lodger the opportunity to meet you and look around your home to find out if your
home is somewhere they want to live. The meeting gives you an opportunity to
explain the basic rules of the house and find out whether they are comfortable with
them. The meeting also gives you the opportunity to find out whether theyre
someone youre happy to share your home with.
You might want to meet your potential lodger with someone present whose
judgement you trust. Their views might be important to you when you make your
decision.
When you meet the lodger it is a good idea to gather some basic information about
them, such as where they live, their contact address, their telephone number. Your
home contents insurer might want you to obtain certain information from a potential
lodger. Also you might want to ask to see some form of identification and find out
how they intend to pay the rent. The form which is included in this pack will help you
record these details.
When you meet a potential lodger you will also want to ask them to provide you with
2 references. It is important before you agree to let your spare room to someone,
that you contact their referees to find out a little more about them.
You should ring everyone you meet to let them know your decision.

The Money

Can my lodger claim Housing Benefit if they have a low income or receive
benefits?
If your lodger is on a low income or claims benefits, they are able to claim Housing
Benefit to help them pay their rent. They will need to make a claim for Local Housing
Allowance (this is the term used for the type of Housing Benefit payment the lodger
will receive).
To be able to claim Local Housing Allowance your lodger will need to be able to
show the Housing Benefit Team that he or she has a formal written agreement which
enables him/her to occupy your home as a lodger. It is very important that you
complete two copies of the lodger agreement and give a copy to the lodger, to
enable him/her to present it to the Housing Benefit Team.
Your lodger will have their Local Housing Allowance paid direct to them and they will
be responsible for passing the payment onto you.
Recoding rent payments
You should give your lodger a rent book, or a written statement that confirms that
you have received their rent payments.
How will the money I receive affect my tax?
Income Tax
The Government offers people who have a spare room an incentive to rent their
spare room out to a lodger, this is called the Rent a room scheme. This allows
people who let out a spare room in their home to a lodger to receive 4,250 a year
tax free.
You can find more information about the Rent a Room scheme by clicking on the
following link.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalI
ncome/DG_4017804
If your income from your lodger is less than 4,250 a year you do not have to
complete a tax return. If your income from the lodger is more than 4,250, you may
have to complete a tax return.
Council Tax
If you currently live alone you should receive the single person discount on your
Council Tax. The single person discount is 25% of your Council Tax bill. You will
need to tell the Councils Council Tax Team that you have taken in a lodger. In most
cases this means that you will lose your single person discount, unless your lodger is
in one of the groups who are disregarded. You can find out which groups are
disregarded by contacting your Councils Council Tax Team or following this link
http://www.direct.gov.uk/en/HomeAndCommunity/YourlocalcouncilandCouncilTax/Co
uncilTax/DG_10037422
How will the money I receive affect my benefits?
If you receive benefits, you must inform the DWP and your Councils Housing Benefit
Team that you have taken in a lodger. Failure to do this will mean that you are

committing fraud. The benefit payments you receive will be reduced to reflect the
additional income you receive from your lodger.
If you receive a means tested benefit (Income Support or Income related
Employment and Support Allowance or Income based Job Seekers Allowance) the
first 20 of income you receive from your lodger will be disregarded and not affect
your benefits. Your benefits will be reduced by any income more than the first 20.

Jane receives Income Support of 100 a week and receives full Housing Benefit to
help her pay her rent of 80 a week.
She takes in a lodger who pays her 55 each week.
When Janes benefits are recalculated she receives 65 in Income Support in
addition to the 55 rent she receives from her lodger, a total of 120 a week.

If you are on a low income and claim Housing and Council Tax Benefit the way that
your benefits will be adjusted is different. The first 20 of income you receive is
disregarded and your Housing Benefit will be reduced by 65p for every 1 you
receive over that amount. Your Council Tax entitlement will be reduced by 20p for
every 1 you receive over that amount.

Jane works on a part time basis and receives 20 Housing Benefit each week to
help her pay her rent of 80 a week.
Jane takes in a lodger who pays her 50 each week. When Janes benefits are
recalculated her Housing Benefit is reduced to 50p per week.

If I under-occupy my home will taking in a lodger mean that Im not affected by

the bedroom tax?
The answer to this question is usually yes. If, for example, you under-occupy your
home by one bedroom and the lodger you rent your spare room to uses your home
as their only home, your home will be assessed as being fully occupied, so the
amount of Housing Benefit you receive will not be reduced. If you were underoccupying your home by two bedrooms and took in one lodger, youd be considered
to be under-occupying your home by 1 rather than 2 bedrooms and the amount of
your rent eligible for Housing Benefit by increase from 75% to 86%.

Jane receives Income Support of 100 a week and receives full Housing Benefit to
help her pay her rent of 80 a week. Jane under-occupies her home by one bedroom
and her housing benefit will be reduced by 11.20 each week.
She takes in a lodger who pays her 55 each week.
When Janes benefits are recalculated she receives 65 in Income Support in
addition to the 55 rent she receives from her lodger, a total of 120 a week.
In addition her Housing Benefit payment covers the whole of her rent, as she is no
longer considered to be under-occupying her home.

If you let your spare room to someone who is not using it as their only home, for
example a student or some-one who lodges with you from Monday to Friday and
returns home at the weekend, you may still be considered to be under-occupying
your home, as the lodger is not using your home as their only home.
These rules will change when Universal Credit is introduced. Under the proposed
rules any lodger will not count as part of your household which means that you will
be affected by the bedroom tax, but you will be able to keep all of the income you
receive from lodgers, without it affecting your benefit.

Dealing with problems with a lodger

How should I deal with a problem lodger?

You should try to deal with any problem you have with a lodger at an early stage, for
example if they havent paid their rent or they are not complying with one of your
house rules. You should talk to the lodger and find out why they have broken the
agreement.
If following your conversation the problem hasnt been resolved, you should write to
your lodger, setting out what the problem is. You need to keep a copy of the letter
and make sure that the letter is dated.
If after your first letter the problem still hasnt been resolved you need to try a more
formal letter, which says that if things dont improve you will be asking them to leave.
Again you need to make sure that this letter is dated and that you keep a copy. You
should also keep a note of all incidents.
If your second letter doesnt work you will need to give your lodger a notice to quit.
This is a letter which says that you are giving them a certain amount of time (7, 14 or
28 days notice) to leave the property. A sample notice to quit letter is as part of this
pack.
If the problem is of a far more serious nature, such as violent or criminal behaviour a
shorter notice period may be appropriate. In such cases you should contact your
local housing office, who will notify you where you can get appropriate advice about
ending the lodger agreement.
In housing law, lodgers are considered to be excluded occupiers. This means that
they have very few rights and can only stay until their landlord asks them to go.
How do I evict a lodger whos causing me problems?
If you have asked your lodger to leave (either by speaking to them or giving them
written notice), in the days leading up to the date you want them to leave you should
ask them what their arrangements are for leaving your home. If they need a little
more time (a few days more to make alternative arrangements) you should consider
agreeing to this.
If they state that they have no intention of moving out you will need to evict them. It is
important that you seek legal advice, from your local Housing Options Team or your
local Citizens Advice Bureaux before taking any action to remove your lodger.

Appendix1

LODGERAGREEMENT
Forlettingaroominafurnishedproperty
The

Property (Address)
TheRoom Meaning the room at the Property which has been agreed
betweentheTenantandtheLodgertobetakenbytheLodger

TheTenant
(Name)

TheLodger
(Name)
TheTerm

(weeks/months)beginningon//
The Shared Referring to the rooms in the Property which the Tenant has
Areas
agreed can be used by the Lodger on a shared basis with the
TenantandanyotherpersonslivingattheProperty,including
_____________________________________________________

_____________________________________________________

Early
By mutual agreement, either party may at any time end this
termination agreementearlierthantheendofthetermbygivingtheother
writtennoticeofweeks/months
Payment
The rent shall be per week/month payable on the first
MondayofeachmonthortheMondayofeachweek
TheDeposit The deposit is the sum of , which is refundable at
the end of the agreement, after eligible deductions have been
made
The
Is the list of the Tenants possessions, which the Lodger is
Inventory
permittedtouseattheProperty,includingtheRoom
This Agreement does not confer any occupation rights on the Lodger that
supersedestheTenantsTenancyAgreementwith(insertnameandaddress

oflandlord)

TermsandConditions
This Agreement is personal to the Lodger and is not assignable. It will
terminate automatically with no notices if the Lodger ceases to reside at the
Property,orfailstomaketwoormoreofthepaymentsthataredue.
TheLodgersobligations
1.1. Topaymoniesowed(thepayment)totheTenantatthetimessetoutin
theAgreement
1.2. TokeeptheinterioroftheRoomandthesharedroomsinagoodand
clean condition and not to cause damage to any part of the Room or
Property
1.3. Not to make any alterations to the Room or Property without the
Tenantsconsent
1.4. To only use the facilities of the Shared areas of the property in
conjunctionwiththeoccupationoftheRoom
1.5. ToretainintheRoomallitemslistedintheinventoryandtokeepthem
inagoodcondition
1.6. Not to keep a pet without the tenants consent, which should be in
accordancewiththeTenancyAgreementandthepolicyof(insertname
oflandlord)
1.7. Not to cause or permit any behaviour which may be a nuisance to
neighbours; nor to engage in activities which are criminal or may
prejudice the insurance on the property and the Tenants tenancy
agreement.
1.8. To use the Room in a residential manner and not to run any business
fromit
1.9 NottoinvitevisitorstothepropertywithouttheTenantsconsent.The
Lodger will not let or share any rooms at the property or take in any
lodgerorpayingguestwithouttheconsentoftheTenant
1.10 ToleavetheRoominagoodconditionattheendoftheterm.
1.11 Toonlyusethestoragespaceprovidedfortheminthekitchenandto
respect the groceries of the Tenant and not to borrow items without
theconsentoftheTenant.
1.12 ToprovidetheTenantwithaccesstotheRoom,subjecttopriornotice,

toinspecttheconditionoftheroomandfurnitureandcarryoutrepairs
tofixturesandfittings.

TheTenantsObligations
2.1 To provide the Lodger with the personal right to live in the
accommodation and use the shared rooms with the Tenant/ the
Tenantsfamily(deleteasappropriate).
2.2 To hold the deposit paid by the Lodger for the duration of the
agreementandtorepaytheLodgerthedepositattheendoftheterm,
lessanyeligibledeductions.
2.3 ToallocatetotheLodgerstoragespaceinthekitchenforitemsoffood
and drinks and to respect the groceries of the Lodger and not to
borrowitemswithouttheconsentoftheLodger.
2.4 Topayalltaxes(CouncilTax)andutilitybills(electricity,waterandgas
[if a gas supply is provided to the property] and to ensure that the
property is heated adequately and has a supply of power and hot and
coldrunningwater.

TheDeposit
3.1. The Deposit will be held by the Tenant for the duration of the
agreement and refunded to the Lodger at the end of Term less any
reasonable deduction for costs incurred by the Tenant in making good
damage caused by the Lodger to the Room or Shared Rooms and to
coverlossesincurredbytheTenantwheretheLodgerfailedtopaytheir
rent.
NointerestispayableontheDeposit
3.2. At any time during the Term the Tenant may apply any part of the
Deposit to cover reasonable costs incurred as a result of the Lodgers
breaches of obligations. The Lodger may be called upon to make
additional payments to make good any losses or costs incurred by the
tenantasaresultoftheLodgersactionsorbehaviour
3.3 Should the Property or the Room become uninhabitable during the
Term the Tenant will make a proportionate refund of any payments
made by the Lodger under the agreement, unless the action of the
LodgeristhecauseofthePropertyorRoombecominguninhabitable.

TheLodgershallnothaveexclusiveuseoftheProperty
Should the Tenant vacate the property or give notice of the intention to
vacate the property, the Lodger Agreement will be immediately terminated
andthepropertyreturnedto(insertnameoflandlord)

SignatureofTenant

SignatureofLodger

Date

Appendix2

LodgerInterviewForm
(Youshouldrecordtheresponsesprovidedbythepotentiallodgerintheboxesprovided)
Name

CurrentAddress

PhoneNumber

NameofNextofKin
AddressofNextof

Kin

PhoneNumberof

NextofKin
WheretheLodger

haslivedinthelast2
yearsandreasonsfor
leaving

WorkIfinwork

nameandaddressof
employer

Hobbiesinterests

Pets

Smoker

Contactdetailsof2

references

Criminalconvictions

MedicalConditions

Other

Appendix3

Inventory

Inventoryfor(address):_________________________________________________
BoththeTenantandtheLodgershouldsignthisdocument.Thisshouldbedonewithinthefirst
weekoftheLodgermovingin.Ifanyextrapagesareattachedthesemustbesignedbyboththe
LodgerandtheTenant.Keepacopyofthisdocumentsafelywiththeleaseagreement.
Hall

Lodgersbedroom

Bathroom

Kitchen

Livingroom

Lodgerssignature:_____________________________________Date:__/__/____

Tenantssignature:____________________________________Date:__/__/____

Appendix4

ExampleNoticetoQuitLetter

(Insertnameandaddressoflodger)

(Inserttodaysdate)
Dearxxx

AsperourwrittenagreementIamgivingyou1month'snoticetomoveout.Yournoticestartstoday
sowillexpireon(insertdate),andyoushouldhaveleftwithallyourbelongingsbythatdate.

Normalrentwillcontinuetobepayableatthenormaltimeuntilyouhaveleft.Onceyouhave
movedoutyouwillberefundedanyrentinfullforallunuseddays(andyourdeposit),subjecttoan
appropriatedeductiontomakegoodanydamagecausedorrentunpaid.

Yourssincerely