Lodger contract

Chisser

I own a house that I live in with 3 student friends who are my lodgers.

Is there a better agreement than an Assured Shorthold Tenancy Agreement
for this less usual arrangement?

Also, it is difficult getting house insurance conventionally. Can you point me towards
where I might find specialist but good value insurance?  Thank you.

Comms69

Yes, a piece of A4 paper with about 4-5 sentences on it. This isnt complicated. and you certainly dont want to use an AST!

(also with 3 people, make sure you pay your tax as it's likely to exceed the allowance)

saajan_12

Don't use an AST, you could grant significant tenant rights you don't have to. 
Just write out a simple agreement covering rent, deposit, what the lodger has access to, notice (would keep it short, no given the close proximity).

Also would agree some house rules covering guests, cleaning, noise - not intending those to be legally enforceable but it makes sure everyone is on the same page, and something to refer to when there are minor disagreements. 

ElephantBoy57

Your living circumstances are classed as living in a house of multiple occupation and you need a licence from your local council. It's a common misconception that the HMO regulations only apply to flatshares where the landlord doesn’t live in the property – it's perfectly possible to have an HMO as a live-in landlord too.

MaryNB

You might want to check the terms of the mortgage as well. I applied with Halifax last week and told them I was intending to get one lodger. They said it was fine but noted that the max allowed is two.

Comms69

ElephantBoy57 said:

Your living circumstances are classed as living in a house of multiple occupation and you need a licence from your local council. It's a common misconception that the HMO regulations only apply to flatshares where the landlord doesn’t live in the property – it's perfectly possible to have an HMO as a live-in landlord too.

He/she may need a licence. Mandatory licencing is for 5 or more people from 2 or more households. Otherwise it's down to local rules

FreeBear

If you are a live-in landlord, never, ever refer to them as "tenants". Always "Lodgers" - Tenants have statutory protections from evictions, lodgers do not. For that reason, you most certainly do not want to be giving them an AST. Provide them with a lodger's agreement (or "Licence to Occupy") along with a set of printed house rules. Lodger agreements can be found on various web sites. One that appears to be OK - http://lodgersite.com/Lodger_Agreement.html

Do make sure you have a break clause that allows for immediate termination in certain circumstances - I have one that allows for summary termination for drug use and/or any matter involving the police (drunk or violent conduct, etc).

House insurance - My policy allows up to two non-family occupants without any strings attached. Worth talking to a local insurance broker if you can't find a policy to suit.

As others have mentioned, you are a small HMO, so there are additional legal obligations you will have to comply with. Insurance and lodger agreements may also need to be modified to fit the requirements.

greatcrested

Do NOT refer to them as 'tenants'. They are 'Excluded Occupiers' / lodgers.

Do NOT refer to an AST. They do not have a tenancy (unless you stupidly grant them one....).

Read
Post 10: Lodgers: advice & links for landlords & lodgers

Be aware you need to declare the rental income to HMRC- with 4 lodgers you are unlikely to qualify for Rent-A-Room scheme.

Be aware you may have a licenceable HMO.

[Deleted User]

Although your hmo may not fall within the licencing requirements, many of the legal obligations to HMOs will still apply.
In particular careful attention needs to be paid to fire risk assessment and having appropriate systems in place.

dimbo61

As a HMO landlord I would make sure you have am EPC, EICR, PAT testing, GSC and home insurance.
Ensleigh Insurance is very good for student tenants which the students need to sort out themselves.
I would also join the NLA or RLA 

Chisser

Thanks all for your help. No mortgage. Not HMO as <5 in the area where I live. Have a Certificate of Lawfulness to confirm this, but insurance and lodger agreement very helpful. Have done fire assessment including connected smoke detection system and escape ladders.