What is the difference between tenants & lodgers?

If you’re a landlord, you may have heard the terms “tenant” and “lodger” thrown around. While both involve renting out space, they have significant differences in terms of legal status and obligations. In this blog post, we will define both tenants and lodgers, discuss their rights and obligations, and highlight the differences between the two. We’ll also provide guidance on how to choose between renting to a tenant or a lodger.

 

Definition of a Tenant

A tenant is someone who rents a property from a landlord. A tenant has certain rights, such as the right to live in the property undisturbed, the right to a reasonable level of comfort and safety, and the right to have their deposit protected. They also have obligations, such as paying rent on time and taking care of the property. A tenant will always sign a tenancy agreement for their rental agreement, which can be either written or verbal, although a written agreement is strongly recommended.

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Definition of a Lodger

A lodger, on the other hand, is someone who rents a room in a property where the landlord also lives. In this situation, the landlord is also a resident of the property and has certain rights, such as the right to access common areas and the right to set rules for the property. A lodger’s rights are more limited than those of a tenant, as they do not have exclusive use of the property.

A lodger agreement is a similar document to a tenancy agreement but is less formal. It outlines the terms of the rental agreement between the lodger and the landlord, including details such as the amount of rent, the length of the agreement, and the responsibilities of both parties.

Differences between a Tenant and a Lodger

The main legal difference between a tenant and a lodger is that a tenant has exclusive use of the property, whereas a lodger does not. This means that a tenant has greater rights to privacy and is protected by more extensive eviction laws. For example, a landlord must give a tenant at least two months’ notice to end the tenancy, whereas a lodger may be asked to leave with only a week’s notice.

There are also different types of tenancy agreements and lodger agreements. For example, a fixed-term tenancy has a set end date, whereas a periodic tenancy continues until either the tenant or landlord gives notice to end it. Lodger agreements are typically shorter than tenancy agreements and may be for a fixed term or periodic.

Scenarios that illustrate the differences between tenants and lodgers could include a tenant who refuses to allow the landlord access to the property, a lodger who is asked to leave at short notice due to a change in the landlord’s circumstances, or a tenant who is entitled to have their deposit protected under the law.

Choosing Between a Tenant and a Lodger

Deciding whether to rent a property to a tenant or a lodger depends on several factors. If you want more control over the property and don’t mind sharing it with someone, a lodger may be the best option. However, if you want to rent out the entire property and don’t want to live with anyone else, a tenant is the way to go.

There are pros and cons to renting to tenants versus lodgers. Renting to a tenant may provide a more stable source of income and may be more attractive to lenders if you want to obtain a buy-to-let mortgage. However, it also involves more responsibility, as you will need to manage the property and deal with any maintenance or repairs that may be required. Renting to a lodger, on the other hand, may provide a more flexible arrangement and may require less management on your part, but the income may not be as stable.

When selecting a tenant or a lodger, there are several factors to consider. For example, the length of the agreement is an important consideration. If you only want to rent out a room for a short period, a lodger may be the better option. Alternatively, if you want a longer-term rental arrangement, a tenant may be more suitable.

Another consideration is the level of involvement you want to have with the property. Renting to a lodger may provide a more hands-off approach, as the lodger is responsible for their own room and you only need to manage common areas. Renting to a tenant, on the other hand, may require more involvement, as you will need to manage the entire property and deal with any issues that may arise.

Conclusion 

Understanding the difference between tenants and lodgers is essential for landlords. While both involve renting out space, they have significant legal differences in terms of rights and obligations. When deciding between renting to a tenant or a lodger, landlords should consider factors such as the length of the agreement and the level of involvement they want to have with the property. With this knowledge, landlords can make informed decisions and create successful rental arrangements.

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Meet Sam your local Expert

Sam has a wealth of experience across the private landlord and Build to Rent sectors. He has advised a wide range of clients across the whole of London on how to find great tenants, improve their assets and effectively market their properties for the best returns.

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