Lodger Tenancy Agreement

tek-monkey

As some may know, I am moving house next week and my brother is coming with me. He is unfortunately currently unemployed, and as I'm direct family he can't claim benefits if living with me, but the CAB told him I should get a tenancy agreement regardless. As he's my brother and I've lived with him for years, I'm not sure I see the need, but am thinking its something I should perhaps sort out anyway.

So, who do I see, what does it say etc? The lender don't need it, there is no benefits to claim, so I'm assuming its just for our own benefits to clarify our position. Seems very formal to me! However, any advice is appreciated. Are there any examples I could look at?

N79

Technically since he is a lodger you need a licence to occupy and not a tenancy agreement.

However, there is no real need for a formal agreement as, in law, a lodger has almost no rights so it is probably simpler if you and he just get together and write down and sign the main points. Make sure you agree provisions for the following....

Rent amount and payment frequency.
Notice period.
Deposit amount.

You should probably discuss, agree, note down and sign the following.

Rules of visitors.
Rules for cleaning of shared areas.
Rules for your access to his bedroom.
Rules for his access to shared areas.
Details of any storage available outside of shared areas (eg cupboard in kitchen and shelf in fridge).

I'm sure others will think of many other areas to consider.

tek-monkey

Thanks for that. All seems very official considering he's my brother, but I suppose its a good idea to have one.

N79

Its still better to negotiate the ground rules in advance to avoid any disputes or simmering resentment about issues which a bit of upfront communication could avoid.

While I am very close to my sister if I was living with my sister (which I did once many years ago - and with a full formal licence to occupy) then we would need a huge list of rules just to cover our different habits and ways of living. Otherwise we would both just irritate each other non stop.

Jowo_2

It's just to protect you both and lay down some ground rules to prevent disputes. Verbal agreements are hard to prove (so are worthless) and informality might encourage casualness. Any landlord/lodger relationship can break down so its just about setting some simple boundaries and managing the risk.

There are plenty of examples on this forum, and landlordzone, where someone has rented a property or a room to a friend or relative as 'a favour' without any documentation and has been aghast how they've been exploited and how much weaker their position is because of the casual approach.

A lodger agreement might only be a side of two of A4 covering the basics, plus a list of house rules around sharing the bills, smoking, overnight guest policy, cleaning.

tek-monkey

So I should just essentially draw up a list of rules, and both sign them?

Fire_Fox

Are you certain your brother can't claim any benefits? I am no expert but, whilst the powers-that-be would not expect you to charge rent, they *may* be happy to accept that he is contributing to the council tax/ utilities/ his own food, especially if you have a formal lodger agreement??

Jowo_2

Strangely enough, after promoting the merits of a lodgers agreement to prevent disputes and recommending you set house rules, I don't think house rules need to be that formal (written and signed), more communicated and agreed.

At the end of the day, if you aren't comfy with having a lodgers agreement that sets out bills/notice periods, or imposing any kind of ground rules, and feel confident you won't have any disputes that can't be resolved in an adult brotherly fashion, then don't have them.

Milliewilly

Fire_Fox wrote: »

Are you certain your brother can't claim any benefits? I am no expert but, whilst the powers-that-be would not expect you to charge rent, they *may* be happy to accept that he is contributing to the council tax/ utilities/ his own food, especially if you have a formal lodger agreement??

I think this is true, my friend owns a house that both her mum and dad live in and they both claim benefits - as long as you can prove you are charging a fair rent i.e not letting your Brother claim housing benefit then letting him live there rent free he should get something?

Jowo_2

It is not possible, in any way shape or form, for a live-in landlord to receive LHA if a relative lives in the same property (i.e. as a lodger).

LHA is paid to landlords that live out of the property and rent to their relatives as long as its not a contrived tenancy (i.e. as a tenant).

BexInLondon

Be careful what you write about your access to his room, as giving him exclusive access to a part of your house would, I believe, go some way to making it a tenancy rather than a lodgery. When I had lodgers I wrote in their agreement that I would retain access to their rooms but then verbally told them that I wouldn't really be entering and that it was just a legal thing.