Tenant or Lodger

marty1888

A friend of mine has just moved in with us at the beginning of March for a couple of months short term. He lost his job at the beginning of April and has now signed on and is looking to apply for housing benefit to go with his jobseekers allowance.
We have no formal agreement in regards to his current situation but he contributed £250 for his 1st month with us for letting him stay.
He requires some sort of agreement/contract for accomodation in order to provide this for his application for housing benefit. Whats the best way for me to do this? Is it better for him to be classed as a lodger or a tenant?
He is only planning on staying for 2 months if he cant find any work before moving back to Northern Ireland.

Any help/advice is as usual much appreciated.

N79

I do not know what is "best" for him but from your description he is a lodger. If he needs a formal agreement you could arrange a licence for him. Ask a solicitor to draw up a licence to occupy. ( I'm sure you can find some online. Google "licence to occupy". Use anything found online with caution.)

Pee

As long as you are living in the property, he is a lodger and you don't even need a formal agreement. It is very easy to evict lodgers, the police will do it if need be. (That would never happen with tenants.)

However the council for Housing Benfit always ask for a copy of the agreement.

The rent is not taxed to a certain amount under the rent a room scheme.

I had trouble getting housing benefit of £75 a week for lodgers, as the council say that this includes bills, but anything is better than nothing on a temporary basis.

marty1888

Pee wrote: »

As long as you are living in the property, he is a lodger and you don't even need a formal agreement. It is very easy to evict lodgers, the police will do it if need be. (That would never happen with tenants.)

However the council for Housing Benfit always ask for a copy of the agreement.

The rent is not taxed to a certain amount under the rent a room scheme.

I had trouble getting housing benefit of £75 a week for lodgers, as the council say that this includes bills, but anything is better than nothing on a temporary basis.

Yeah, I've just checked some figures and its £4,250 a year so just over £350 a month, tax-free under the Rent a Room Scheme.

mlz1413

he is definately a lodger, you can get lodger agreements which may help his benefit claim.

As Pee pointed out be careful how much he claims for as lodgings include bills, if you also include washing laundry and food then you will need to itemise what is included. You are allowed £350 pm on a rent a room scheme (so don't pay tax on it) so keep that in mind when setting a rent too.

marty1888

mlz1413 wrote: »

he is definately a lodger, you can get lodger agreements which may help his benefit claim.

As Pee pointed out be careful how much he claims for as lodgings include bills, if you also include washing laundry and food then you will need to itemise what is included. You are allowed £350 pm on a rent a room scheme (so don't pay tax on it) so keep that in mind when setting a rent too.

Classifying him as a lodger seems the best and most sensible way to go.
He isnt going to pay anymore than £250 a month which includes all bills etc, so I assume thats all he will be able to claim for as housing Benefit?

Pee

Specifically say that you are not including food, laundry etc.

marty1888

Pee wrote: »

Specifically say that you are not including food, laundry etc.

Will do,Thanks. None of those are included.