Are You Considering Getting a Lodger?

This is a collaborative post

Getting a lodger can be an enjoyable experience. It helps connect you with people who can become friends for life and potentially make money on your home while doing it. Of course, it can all go terribly wrong, too! We’ve all seen those Netflix shows! It probably won’t happen to you, but you owe it to yourself to ensure everything goes smoothly. There is some work to do but it’s well worth it. So, here are some things to consider if you plan on opening your home to lodgers.

Overhaul the Space

Renting out your home to someone means ensuring it is good enough. As a kind host, you can make your home more inviting for a lodger with an overhaul. Whether it’s the room you rent out or the entire house, a renovation can help you prepare for someone moving in. A loft conversion company will also help transform the unused space in your attic. Additionally, you can typically charge more when you invest in making the space more hospitable for your new tenants.

Check the Mortgage when Getting a Lodger

People choose to invite lodgers for many reasons. One of the most common is to make some extra cash. Since 2021, there has been an 89% increase in the number of homeowners taking in lodgers. However, just because you own your home doesn’t mean you can do as you please! Believe it or not, your mortgage can be void by accepting lodgers into your home. Always check with your mortgage provider to avoid a lot of legal trouble that could cost you more than money.

Check Your Tenant Agreement

As a homeowner, you are more likely to be able to open your home to lodgers. But it is more complicated if you are a renter. Typically, renters can’t charge others for living in their homes. Since you don’t own the property, you may not have the right to do this. However, some landlords might be okay with it. Before you accept a lodger, ensure you get the landlord’s permission first, or they might have the legal right to remove you and lodgers from the home both of you love!

Ensure You Can Cover Missed Payments

It can be a fun experience taking in a lodger. But in most cases, you take in a lodger to cover financial expenses. So what if your lodger becomes unreliable? There are many stories of seemingly excellent lodgers suddenly stopping payments. It will help to make sure you have enough money in the bank to cover missed payments. This will help alleviate issues if you rely on the lodger’s payments. Around three month’s rent should be enough to cover any issues.

Safety Concerns When Getting a Lodger

There are safety concerns when getting a lodger, and it runs both ways. You must ensure your home is safer for any lodgers and also ensure your own safety. Here are some tips for safety:

• Ensure the rented space is legally safe for habitation.
• Check the smoke and carbon monoxide alarms are working.
• Do a background check on the person on lodger candidates.
• Ensure heating and cooling systems work as they should.
• Book an annual gas safety check and get a certificate.
• Ask for former residential references to ensure suitability.
• Run a credit check for your own financial safety and security.

Any rented spaces must be fit for people to live in. You risk fines and penalties if not. This includes basic functions like heating. But you also have the right to investigate your lodger too.

Check with Your Insurance Provider

Like your mortgage provider or landlord, you may also need to check with your insurance policy provider if you have any. You may or may not need to, so it always helps to check, just in case. Lodgers can change the nature of your insurance agreement, and you might not be covered, even legally, if you invite people to rent out a space in your home. It will probably result in a higher premium. But the peace of mind and extra lodger rental payments are worth it in the end.

Discuss Which Bills are Included in Rent

Lodgers might have certain expectations when they move in. Ensure you discuss with any lodgers what is included when they move in and what they are expected to pay for. For example, Wi-Fi might be provided. But you can ask for a contribution to gas, electricity and water. Not to mention, you can also ask for a contribution to meals if you provide cooking services. Make sure your lodges understand what is expected and provide them with a written confirmation of this.

Check Tenancy Rights when Getting a Lodger

Just like you have rights as a mortgage customer or rental tenant, lodgers also have rights. However, the rights of a lodger aren’t as extensive as those of a rental tenant, but they are pretty solid. For example, lodgers have the right to 28 days’ notice of eviction in the UK. Of course, the rights of lodgers are very different depending on where you live. Local area websites and national regulations generally dictate these rights. Always check before allowing a lodger in your home.

Always Have a Lodger Sign a Contract

Lodgers have rights, and so do you. Many of the things listed above can be set out in an agreement or contract. This ensures both parties have an understanding and backs both of you up if there is a dispute. A formal contract that a lodger signs is a legal document that binds both of you to committed responsibilities. It also acknowledges that you both understand what is expected. It’s often a simple thing, but a lodger tenancy agreement can help you in a situation.

Summary

An inviting space will help make a home when getting a lodger and help them feel at home. But this doesn’t cover everything. The space you rent out must also be safe, and you must also feel secure. A contract will help reduce problems by acknowledging what is expected of each party.