Summary: Renting out a room in your own home classifies you as a live-in landlord, which carries distinct legal responsibilities and benefits compared to letting entire properties. This guide outlines the key rules, rights, and practical advice for managing lodgers effectively and staying compliant with UK law.

Understanding the Role of a Live-In Landlord

Many landlords assume that letting a property means renting out an entire house or flat. However, if you rent out a room in your own home while living there yourself, you are considered a live-in landlord. This status involves different legal obligations and offers greater flexibility compared to traditional buy-to-let arrangements.

Live-in landlords typically operate under licence agreements with their lodgers rather than assured shorthold tenancies (ASTs). This means the rules governing the relationship are less formal, but it remains essential to understand your responsibilities to protect both yourself and your lodger.

Key Responsibilities for Live-In Landlords

As a live-in landlord, you must ensure your property remains safe and comfortable for both you and your lodger. While the legal requirements are generally less stringent than for whole-property landlords, certain duties are mandatory:

• Gas Safety: Arrange an annual gas safety check conducted by a Gas Safe registered engineer and provide your lodger with a copy of the gas safety certificate (CP12).
• Electrical Safety: Ensure all electrical appliances and installations are safe, ideally through Portable Appliance Testing (PAT) and an Electrical Installation Condition Report (EICR).
• Smoke and Carbon Monoxide Alarms: Install smoke alarms on every floor and carbon monoxide detectors where required.
• Furniture and Product Safety: All furnishings and appliances used by the lodger must comply with current fire safety and product safety regulations.

If your property houses more than two lodgers, it may be classified as a House in Multiple Occupation (HMO), which could necessitate obtaining an HMO licence from your local council. It is important to check local authority requirements to ensure compliance.

Who Is a Lodger and What Are Their Rights?

A lodger rents a room in your home and shares communal facilities such as the kitchen, bathroom, and living areas. Unlike tenants with ASTs, lodgers pay a licence fee, which often includes council tax but usually excludes utility bills, which they contribute to fairly.

Lodgers are typically classified as excluded occupiers when they share essential facilities with you. This classification means they have fewer legal protections than tenants, and you can evict them by giving reasonable notice—usually equivalent to one rental period—and peacefully regaining possession, such as by changing the locks after notice.

Referencing and Agreements

Proper referencing of lodgers is crucial, even if you know them personally. Conducting checks on their financial stability and rental history helps safeguard your home and income. Key checks include:

• References from previous landlords
• Proof of steady income through payslips
• Verification of identity and Right to Rent status
• Employer references
• Credit checks for outstanding County Court Judgments (CCJs)

Unlike ASTs, lodgers have licence agreements rather than tenancy agreements. These agreements can be fixed-term or periodic and should clearly outline rent, notice periods, house rules, and deposit arrangements. Although lodger deposits do not require protection in government-approved schemes, it is good practice to document them clearly.

Notice Periods and Eviction

As a live-in landlord, you can terminate a lodger’s licence agreement by giving reasonable notice, typically one week or one month depending on the agreement. For fixed-term licences, you generally must provide 28 days’ notice before the lodger leaves at the end of the term.

If a lodger refuses to leave after notice, you may evict them peacefully without court proceedings, such as by changing the locks. However, you can also apply for a possession order through the courts if necessary, provided you have given proper notice.

Financial Benefits: The Rent a Room Scheme

One advantage of taking in a lodger is the government’s Rent a Room Scheme, which allows you to earn up to £7,500 per year tax-free from letting furnished accommodation in your home. This allowance is split if shared with a partner. This scheme can make renting out a room a tax-efficient way to supplement your income.

Final Considerations for Live-In Landlords

Renting out a room in your home requires balancing your private space with your lodger’s needs. Clear agreements, proper referencing, and adherence to safety regulations are essential to a successful arrangement. Understanding your legal responsibilities and rights will help you manage lodgers fairly and avoid disputes.

With careful planning and compliance, being a live-in landlord can be a straightforward way to generate additional income while maintaining a safe and comfortable home environment.