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What is the difference between a lodger and a tenant?

Last year I went travelling. A couple who were my daughter’s friends moved into my house using my bedroom and the communal areas. My daughters still have their bedrooms at the house although they both spend little time there as one likes to travel and the other is away at uni most of the time.

At the time everyone was great friends but now my daughter can no longer stand to live with this couple and wants them out. I am wondering how best to do this.

I didn’t know a lot about letting out a house and as everyone was great friends I gave them an AST agreement but I now think that was the wrong type of agreement as they are more lodgers not paying council tax or utility bills.

Could anyone give me good advice on whether they are lodgers or tenants?

Yes I know I have been a fool.

Comments

  • KatrinaWaves
    KatrinaWaves Posts: 2,944 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Tenants. You as the landlord were not present as you were travelling.

    9/10 they had exclusive occupation of the property as your daughters were at uni. Them not accessing the daughters rooms doesn't matter, the daughters were not the landlords nor were they there enough to prevent them being tenants.

    Pretty clear cut they are tenants IMO.
  • theartfullodger
    theartfullodger Posts: 15,756 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 4 January 2019 at 1:11PM
    Who was named as landlord on the tenancy/lodger agreement? If you, tenants (probably..) , if daughter(s), lodgers.

    As AST agreement provided think any judge will decide they are tenants, albeit you could try arguing.

    Has ALL the rent been declared (by someone..) to HMRC?

    Does your mortgage & insurance permit this? If you are not OK on insurance buy new one that does TODAY! Otherwise, place burns down, someone 'orribly burned, no payout, you likely bankrupt.

    Saddened but pleased you realise what you are.
  • Tom2023
    Tom2023 Posts: 151 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    My daughter was named as landlord.
  • sevenhills
    sevenhills Posts: 5,938 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Tom2023 wrote: »
    My daughter was named as landlord.


    But was it actually your daughters main address?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 4 January 2019 at 1:56PM
    Tom2023 wrote: »
    My daughter was named as landlord.
    'You' did not give them a tenancy agreement. Your daughter did. I assume rent is also paid by this occupant to your daughter? Or to you?

    Which daughter? The one who is travelling? The one at university?

    If the named landlord is non-resident then the occupants are tenants. 'Residency' depends on the individual circumstances, but in the case of someone living away at university (eg in university or other accomodation) then she would not be resident and they would be tenants.

    Similarly the travelling daughter- if she were on a gap-year volunteering in Timbucktoo, clearly she's not resident at the property. On the other hand if she simply takes long holidays (a month visiting friends in france then back, then a week in scotland etc) then she would be 'resident'.

    Having said all that, even if the named landlord IS 'resident' she may have inadvertantly granted protected tenancy status by providing an Assured Shorthold Tenancy Agreement.

    The best solution is for daughter to reach an amicable agreement for the tenant/lodger to vacate, without recourse to the law. Flexibility over the proposed end date and/or financial help with a deposit for a new tenancy elsewhere would help here.

    If the occupant refuses to leave and claims rights, I suggest specialist legal advice be sought eg from your Landlords Association.......
  • Tom2023
    Tom2023 Posts: 151 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thank you all for all the advice.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Tom2023 wrote: »
    Last year I went travelling. A couple who were my daughter’s friends moved into my house using my bedroom and the communal areas. My daughters still have their bedrooms at the house although they both spend little time there as one likes to travel and the other is away at uni most of the time.

    At the time everyone was great friends but now my daughter can no longer stand to live with this couple and wants them out. I am wondering how best to do this.

    I didn’t know a lot about letting out a house and as everyone was great friends I gave them an AST agreement but I now think that was the wrong type of agreement as they are more lodgers not paying council tax or utility bills.

    Could anyone give me good advice on whether they are lodgers or tenants?

    Yes I know I have been a fool.


    Did the agreement exclude use of any of the rooms in the property ?
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    Tom2023 wrote: »
    Last year I went travelling. A couple who were my daughter’s friends moved into my house using my bedroom and the communal areas. My daughters still have their bedrooms at the house although they both spend little time there as one likes to travel and the other is away at uni most of the time.

    At the time everyone was great friends but now my daughter can no longer stand to live with this couple and wants them out. I am wondering how best to do this.

    I didn’t know a lot about letting out a house and as everyone was great friends I gave them an AST agreement but I now think that was the wrong type of agreement as they are more lodgers not paying council tax or utility bills.

    Could anyone give me good advice on whether they are lodgers or tenants?

    Yes I know I have been a fool.

    It's complicated, but you are better of evicting as if they were tenants.


    If you don't, and they go to court it could end up very expensive. (£300 a day isn't unheard of for illegal eviction)
  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    We used to have a hmo with a live in landlord, once the landlord leaves they then become tenants. A lodger is someone that stays with you and shares the property.


    Don't forget the declaring to HMRC also
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
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