Lodger Agreement

Our Lodger Agreement comes in template form and, once downloaded, you can easily edit it to your requirements.

A lodger agreement may also be known by other names, but be essentially one and the same thing, e.g.:

• a licence to occupy residential property (but see the notes below);
• a rent-a-room agreement;
• a room rental agreement;
• a housemate or flatmate agreement;
• an agreement to let a room to a lodger on a serviced basis; and
• an agreement for a landlord to share house or flat.

When to use a Lodger Agreement

You can use this lodger agreement template:

1. whether you (the landlord) own your property as freehold or leasehold;
2. only if the landlord lives in the property; and
3. whether the term of lodging is open-ended or a fixed term.

This lodger agreement presumes:

• the landlord will share some facilities, such as bathroom and kitchen, with the lodger;
• the owner occupies this property as their main or only home; and
• the owner does not generally carry on a business of taking in lodgers.

Downloadable in Word format, our template takes only a few minutes to complete, with the help of our guide.

This form of contract is ideal for use when renting a room in a house or flat where certain parts of the home will have shared use (e.g. the kitchen and living room).

Drafted by David, an experienced UK solicitor of over 20 years, you get cost-effective, reliable legal peace of mind with our template.

For tips on taking in a lodger, see this page from Citizens’ Advice: https://www.citizensadvice.org.uk/housing/renting-a-home/subletting-and-lodging/lodging/lodging/.

When not to use a Standard Lodger Agreement

Do not use this lodger agreement if you (the landlord) or a member of your family are not resident in the building that you are renting out – in such a case, use our licence to occupy residential property instead. It is almost identical to this lodger agreement, but has different consequences in terms of the occupant’s rights and how you would evict them – the guide that comes with it explains these issues.

Lodger agreements in Scotland

While most of our templates are designed with English law in mind, you can also use this lodger agreement for properties in Scotland. Please note for lodgers in Scottish properties:

• The landlord can charge a maximum of 2 months’ rent as a deposit. (The deposit does not need to be in a protected scheme.)
• If the landlord moves out, the agreement turns into a private residential tenancy (Legalo don’t offer a template for one of these yet). The landlord should therefore replace the lodger agreement with the appropriate tenancy agreement.

How to use this Lodger Agreement Template

We offer two types of lodger agreements at this website. The standard Lodger Agreement without guarantor is this version. This type of document states that no-one other than the tenant is responsible for paying the rent. Use this version of the agreement if you are confident that the tenant has a secure income, good references and is capable of paying the rent on time.

If the lodger is renting for the first time, such as a student, they may not have a rental payment history (i.e. references). You may feel more comfortable having them sign a Lodger Agreement with a Guarantor. This other version of our agreement provides further protection regarding rent payment. It requires that the lodger have a Guarantor who is directly responsible to the landlord for any obligations not met by the tenant.

When you purchase the template, you will be able to reuse it many times. You can download the Lodger Agreement template in just a matter of minutes to your computer. This template legal document can be easily completed like a simple form and customised to suit your requirements if you wish to state something specific within the agreement.

Guide to our Lodger Agreement template

The guide that accompanies this template when you buy it has a fuller discussion of the process of evicting a lodger who has overstayed his welcome or breached the agreement. For an idea of the topics the template covers, please have a read of the excerpt from the guide below:

1. Interpretation

This clause defines the main terms used in the agreement.

• Contents – List the contents of the room in an inventory.
• Deposit – Complete the deposit the lodger must pay here.
• First Payment Date – State when the lodger must pay the first instalment. Usually this is the date the lodger starts to live in your home.
• Insured Risks – The landlord should insure against the usual risks, e.g. flooding.
• Inventory – Attach an inventory of the contents of the lodger’s room to this lodger agreement. (Legalo has a template for an inventory if you need one.)
• Licence Fee – Insert the level of the charges. You should set this at a sufficient level that it includes a proportion of the following:
  1. council tax (unless you are to charge separately for this – see clause 3.3 below);
  2. electricity, gas, water rates and other utilities charges (unless you are to charge separately for this – see clause 4.1 below); and
  3. buildings and contents insurance.
• Payment Date – Fill in when payment is due.
• Property – Insert the address.
• Room – State which room the lodger is to have.
• Term – Fill in the end date if this is for a fixed term. Otherwise, delete this definition.

2. Lodging

Clause 2.1 provides that the lodger can lodge in the room from the first payment date. If this is not a licence for a fixed term, delete the words “until the end of the Term”. Clause 2.2 refers to the common areas of the property that the lodger can use – fill in the details. As part of the requirements for this to be an “excluded licence” (see the full guide for details), you or a member of your family should share at least one of the following rooms with the lodger: kitchen, bathroom or living room.

Clause 2.3 refers to this being a licence that is not a protected tenancy for the reasons noted above. Clauses 2.4 and 2.5 are aimed at avoiding the lodger having exclusive possession rights over the room, which might tend to imply this is a tenancy (as noted above). In clause 2.5 fill in the number of days or weeks notice.

3. Licence fee

Clause 3.1 deals with what is effectively the rent (but we are avoiding using that term for the reasons explained above). Select whether is it is payable weekly or monthly. In clause 3.2 if the room or the property becomes unfit for habitation (for example due to water damage), payment of the licence fee is suspended until the room/property has been reinstated.

4. Utilities under the lodger agreement

In the lodger agreement, if the licence fee includes a charge for utilities, then delete option 1 and keep option 2 in clause 4.1. If not, delete option 2 and keep option 1. In clause 4.2 check which utilities are included – delete any listed that do not apply.

5. Deposit

Clause 5.1 notes that you have received the deposit from the lodger. Clause 5.2 permits you to retain proper amounts out of the deposit for the reasons listed here if all is not as it should be when the agreement comes to an end. If you are not charging for utilities costs separately from the licence fee under clause 4.1, then delete reference to them in clause 5.2.2. Please note that if this licence became classified as a “tenancy”, then the holding of a deposit would be come subject to the rules that applies to residential tenancies – the deposit would have to be lodged with one of the approved deposit protection schemes (under section 212-215 of the Housing Act 2004, as amended by the Localism Act 2011).

6. Lodger’s obligations

This clause provides a list of dos and don’ts for the licensee, including a ban on keeping pets (clause 6.3). In clause 6.4.2 amend the times if you wish to regulate differently when loud music or musical instruments can be played by the lodger in his room. Clause 6.9 states the property has a policy of no smoking indoors – delete this clause if it does not apply. Clause 6.10 provides that the lodger shall not have overnight guests without specific permission from the owner – delete this clause if it does not apply. In clause 6.11 fill in the percentage interest charged on late payments, e.g. 4% to 8% over the base rate is normal. You only need clause 6.12 if the owner holds the property under a lease – if not, then delete the clause. If there is such a lease, then:

(1) the owner should notify the lodger from the outset of any relevant covenants that the lodger ought to comply with; and

(2) the owner should check the landlord has not banned owners from taking in lodgers under the terms of the lease.

7. Owner’s obligations

Clause 7.1 states that the owner will insure the room’s contents that are owned by the owner (i.e. those on the inventory). Clause 7.3 refers to the owner’s obligations to ensure the property and room are safe. If clause 7.4 (which requires the owner to stock the bathroom with soap and toilet paper for the lodger’s use) does not apply, please delete it.

8. Limitation of liability

This clause in the lodger agreement seeks to limit the owner’s liability as far as is possible.

9. Termination of the lodger agreement

Under clause 9.1, either party can terminate the licence by notice: fill in the number of weeks notice you require. If this is not a licence for a fixed term, delete the last sentence of clause 9.1. Clause 9.2 allows the owner to terminate on one week’s notice if the lodger is in breach. The clause then deals with various issues that arise on termination, such as the lodger leaving the room in a decent condition and providing a forwarding address.

Clause 9.5 states that the owner may dispose of any property of the lodger that is left when the licence terminates, but in reality, to avoid being liable for loss, the owner must sell them for a reasonable price and account to the lodger for the money made (retaining it in case the lodger gets in touch if the lodger has not left any contact details). Clause 9.6 only applies if the agreement is on a fixed-term basis – if not, delete the whole clause.

FAQs on Lodger Agreements

Below, we have answered the top FAQs from the Internet on lodger agreements.

Is a lodger agreement the same as a tenancy agreement?

A lodger agreement is a different document to a tenancy agreement and you use it in different circumstances. You would use a lodger agreement when a person would like to:

• rent a room in a homeowner’s residence; and
• have shared use of some other key room(s), such as bathroom, lounge or kitchen.

Whereas a tenancy agreement is used for either renting (a) an entire property, or (b) a room in a property, that is not one the landlord or their close family are living in or where no other rooms are shared with the landlord. The latter comes with more rights and protections for the tenant under landlord and tenant laws, particularly regarding eviction.

What is a typical lodger agreement?

When used in the circumstances set out above, a lodger agreement is a legal document in which the terms of renting a room in a homeowner’s residence are laid out. It clarifies information on rent, utilities, access to common areas, and house rules, as well as specifying the notice period and responsibilities of both parties.

Is a Lodgers agreement legally binding?

A lodger agreement is legally binding and both parties (homeowner and renter) must adhere to the terms laid out in the contract. In order to make sure the agreement is legally binding, it is important that it is clear and fair, and compliant with all relevant laws.

What should a landlord provide for a lodger?

The agreement should make clear the landlord’s responsibilities to the lodger. These should include basic utilities, house rules, a right to privacy, a notice period, all necessary maintenance, safety precautions. The landlord should also provide receipts for rent payments during the lodging and maintain clear and open communication with their lodger.

One thing a lodger’s landlord does not have to do is put any deposit into a deposit protection scheme.

Do I have to declare rent from a lodger? How much can you charge a lodger without paying tax?

In the UK rental income, even from a lodger, is generally considered taxable and will need to be declared to HMRC. However, the “Rent a Room Scheme” allows homeowners to earn up to £7,500 (£625 per month) a year from renting out a fully-furnished room in their main residence without paying tax on the income. (These figures are correct as at 2023.) If the rent falls below this threshold, the homeowner generally will not need to pay tax on it. However, tax rules and thresholds change, so it is advisable to check with HMRC to get up-to-date information.

Do I need a witness for a lodger agreement?

It is not a legal requirement to have a witness for a lodger agreement, but it is often a good idea to do so to add an extra layer of protection and credibility to the agreement. A witness may be able to testify that both parties wilfully entered into the contract without any coercion or misunderstanding, therefore avoiding disputes or legal issues in the future.

Do lodgers pay bills?

The landlord might require a lodger to pay a share of the bills, including utilities and often internet and TV services, with the arrangement aiming to fairly distribute the cost of living expenses between the homeowner and lodger. Regardless of exactly what the lodger is due to pay according to an agreement, the agreement should clearly state the terms to avoid any disputes.

Can a lodger refuse to leave?

Once the landlord has given a lodger proper notice to vacate a property, they are legally obligated to leave. The period of notice required is usually the period for which they pay rent:

• if they pay weekly, then 1 week’s notice; or
• if monthly, then 1 month’s notice.

If a genuine lodger refuses to leave, the homeowner can change the locks and does not have to start eviction proceedings. However, given that evicting a tenant without a court order is a criminal offence, you need to be sure this was a genuine lodger situation in the first place. For more on the differences with lodgers and their eviction rights, see the government’s article on this.

Can I kick a lodger out?

Most of the time you cannot simply “kick out” a lodger while disregarding all proper eviction procedures. In all cases, the landlord must issue the notice and correct notice period given, as noted above. If a lodger still refuses to leave, then you can change the locks. For a genuine lodger situation you don’t need a court order for their eviction, as noted above.

Can lodgers have overnight guests?

The terms of a lodger agreement should lay out whether lodgers can have overnight guests. The house rules will often cover this. If the lodger agreement doesn’t state anything regarding overnight guests, the homeowner and lodger need to have clear and open communication regarding this issue to ensure that both parties understand what is acceptable.

What rights do lodgers have?

In the UK, while lodgers do have a number of rights, these are far less than those given to tenants. A lodger’s rights are mostly dependent on what the agreement with the homeowner includes. Some of these rights typically include exclusive occupation, a notice period, freedom from harassment and access to shared facilities. While a lodger may be given the right to live in a specific room in the homeowner’s house, they may not always be given permission to install a lock on the door as, unless the agreement states otherwise, you cannot exclude the landlord from any part of their property. The tenants’ deposit protection scheme does not apply to lodgers. Also the law does not protect lodgers from eviction without a court order. So you can see a lodger situation is very different in the eyes of the law from a tenancy.