What type of agreement AST/lodger?

the-mango

If I were to rent out 2 rooms in my flat to fellow students / friends of mine what contract would I have to use? Would it be lodger or a AST or a General one?

I would be living there but their rooms would have locks on the door.
Would I need to get special insurance for this?

Hump

You would be a resident landlord meaning you would have lodgers of which there are several reasonable agreements available to use (readily available from stationers/ online).

With respect to insurance - you are likely to have to declare this to your insurance company and they will likely charge you more.

Also remember that whilst the 'rent a room scheme' allows a certain rental income from lodgers 'tax free', having 2 lodgers will almost certainly push you over the limit and you will need to contact the 'tax man' .....

see https://www.communities.gov.uk/documents/housing/pdf/151564.pdf

the-mango

As students don't normally have lodger agreements would I be able to give them an AST instead?

the-mango

wrote:

1.3 How exactly is a landlord considered to be
‘resident’ in law? Does it make a difference
if I don’t live in the property all the time?
For lettings started from 15 January 1989, the
important point is whether you are using the
property as an only or principal home, both at the
start of the letting and throughout it.
It is accepted that, for short periods, a landlord may
not live in the property yet still be considered to be
resident: so long as he or she intends to return and
this is apparent, for example if he or she has left
belongings. However, only a court can say for
certain whether a landlord has maintained enough
residence in the property to count as a resident
landlord: if not, then it is possible that the letting
arrangement may be deemed to have become a
regulated or assured tenancy, depending whether
it first began before or from 15 January 1989. The
definition of ‘residence’ for determining how the
landlord must give notice or can evict an occupier is
slightly different (see section 1.4).

Also, I won't live there all year, only for about 24 weeks, maybe a bit more.

techcastoni

the-mango wrote: »

As students don't normally have lodger agreements would I be able to give them an AST instead?

My understanding is that if you are a live-in landlord then your tenants are considered 'excluded occupiers' - this basically means your tenants have very few rights but I also believe that you can't give them an AST contract.

jamie11

the-mango wrote: »

Also, I won't live there all year, only for about 24 weeks, maybe a bit more.

How are you going to be able to say this is your principal home if you are there less than half a year?

You may inadvertently grant AST's to your lodgers, that would mean you having all the responsibilities for doing the necessary things and it would be more difficult to evict them if needed.

the-mango

jamie11 wrote: »

How are you going to be able to say this is your principal home if you are there less than half a year?

You may inadvertently grant AST's to your lodgers, that would mean you having all the responsibilities for doing the necessary things and it would be more difficult to evict them if needed.

I doubt they will be difficult to evict as they will be students who are moving on anyway.
I could live there for longer if that would uncomplicate things.
Does that mean if they are lodgers I don't need to get things like landlord insurance and stuff?

vuvuzela

the-mango wrote: »

I doubt they will be difficult to evict as they will be students who are moving on anyway.
I could live there for longer if that would uncomplicate things.
Does that mean if they are lodgers I don't need to get things like landlord insurance and stuff?

The point is, if you give them AST rights, then things could get very difficult if they refuse to leave when you want them to.

00ec25

the-mango wrote: »

Does that mean if they are lodgers I don't need to get things like landlord insurance and stuff?

depends on the attitude of your insurance company , some will allow 2 lodgers, many won't

you will still have to meet the gas safety certficate requirmeent whether they be a lodger or tenant

BTW is this the property that your father will own as per your other thread, if so then you left out some rather important comments like the fact you will only be there part time so they may not be your lodgers at all but would be your father's tenants

Yorkie1

I am concerned by the reference to them having locks on their doors. If you do not retain a right to enter the rooms at will, then they have exclusive use of the room and I think you do indeed risk creating an AST for that part of the property.

The fact that you live there less than half the year also raises a concern, mentioned by jamie11, that you inadvertently create an AST irrespective of room locks.

The reference to 2 lodgers also raises a question as to whether you would become a House in (of?) Multiple Occupation, with potentially additional issues to comply with.

the-mango

I've checked and it won't be a HMO.
Although the property will not be owned by me I will be the one in charge of letting it so all that wil be in my name.