What contract do I need to to let out a spare room to someone in your home?

Find out more about Lodger Licence Agreements

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If you need to to let out a spare room to someone you should consider using a Lodger Licence Agreement. This page will explain why and how to create your next Lodger Licence Agreement.

A lodger licence agreement allows a live-in landlord to rent a room in their main home to a lodger. A lodger is an excluded occupier which means that they do not have exclusive possession of their room. As a result, a lodger is not a tenant and has less rights than under an assured shorthold tenancy as they are living in the landlord's main home. A lodger can stay for a couple of nights to a couple of months.

Taking on a lodger is potentially a good way of generating additional income from spare rooms in your property especially thanks to tax-free incentives such as the Rent a Room scheme. However, it is important to choose a lodger who you get on with and to ensure you have a robust lodger licence in place.

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A lodger's licence fee will usually include utilities which will represent a fixed amount. As the lodger's room will be in the landlord's main home, the utilities will usually be in the landlord's name. If the utilities are not included in the fee, the landlord might request the lodger contribute a fair proportion of the utilities for the period.

A lodger will also have fewer rights than a tenant which means they can be evicted on shorter notice and can be moved to a different room of the house on reasonable notice. The live-in landlord, also known as a licensor, does not need permission to enter the lodger's room.

To create a lodger licence agreement which meets your requirements and protects your rights as a live-in landlord, simply register with Legislate and answer some simple questions. In minutes, Legislate will build a custom lodger licence agreement which will allow you to let out your spare room to a lodger.

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