Live-in landlords or “resident tenants,” as they’re sometimes known, are homeowners who rent out their properties to lodgers who share ownership with them and aren’t technically tenants; both landlords and tenants must sign an Assured Shorthold Tenancy Agreement (AST), however. Furthermore, special rules must also be observed regarding lodging arrangements between both parties involved.
If you’re thinking of renting part of your property to lodgers, this article outlines essential points that need to be kept in mind when creating an Excluded Tenancy Agreement or lodger agreement.
Though lodgers don’t enjoy all of the same rights as tenants do, an agreement makes life simpler for both the lodger and landlord by setting expectations clearly and creating a shared understanding between both parties involved. Should any conflicts arise later on, an agreement could serve to resolve it quickly.
Though lodger agreement templates are readily available online, some landlords prefer creating their own agreement for lodgers. Here are the most essential considerations that landlords should keep in mind when creating this document:
Make the rules clear
Because your lodger will be living in your house, it’s crucial that both parties involved clearly establish what house rules there may be from the start to ensure both are on equal ground. If you do not want them playing music late into the night or leaving belongings around communal areas, be sure to make that clear in their contract.
Contracts should set forth how you’d like your property managed, and this includes providing tenants with an inventory before taking possession. An inventory can help assess its condition before and during lodging as well as record its maintenance over time.
State the consequences
Consequences Should the lodger cause you any discomfort or damage to your property, you need to decide whether you wish to abide by the terms of their contract and allow them to reside at your residence.
Landlords typically attempt to resolve issues through peaceful discussions with tenants and formal letters giving the lodger another chance to correct his/her behavior; if no change occurs then landlords can request that lodger leaves.
Make certain the lease agreement outlines any misunderstanding caused by your landlord and its consequences clearly.