Hi may name is Lorna, and I’m and advisor for Towergate Insurance.
In this video we’re going to look at considerations when taking on a lodger.
What’s the difference between landlord and lodger?
The main difference between being a landlord and having a lodger is the greater freedom you have to end an agreement. If you have someone in your home and the relationship doesn’t work out, or your personal situation changes the landlord retains more rights to end the tenancy agreement.
There are still differences in the type of agreement though. These depend on whether there is shared space within the property or the tenant has private use of at least one room. The exact legal rights of each party depend on these arrangements.
One of the first things to check before you take a lodger is whether you’re allowed by the owner or lender.
If you are a Leaseholder, you may have conditions to the lease which prevent or dictate the type of renting you can do within the property.
If you rent a property privately, you’ll need express permission from the landlord before taking a lodger. But if the tenancy is with your council you may be automatically allowed to rent out a room to a lodger.
If you own your property with a mortgage you will need to advise your lender about the change in circumstance.
Don’t forget that if you lived alone before taking on a lodger you may have been benefiting from a single person discount on your council tax. This will no longer be applicable and you will have to inform your council of the change in occupancy.
Most standard home insurance policies will not automatically cover lodgers. This means your contents insurance, or even your buildings insurance could be made invalid from a claim. Although it is not likely to incur an increase in your premium via a specialist insurer it is vital that it is noted on your policy.
For advice on landlord insurance or more resources for landlords, visit our website today.