Lodger agreement -fixed/rolling

unnameable

Hi,
I have a lodger agreement in place that is due to expire very soon. Term was six months, but I'd like to extend. Should I pull together a new one for another six months, or should I change to rolling. If I do change, what is the correct wording for the section that currently states "Term 2. A term of 6 months  commencing on 27 May 2020"?

Thanks!

FreeBear

"Term 2. Lincence to occupy on a monthly basis subject to termination clauses below."

Make sure you have a termination clause that allows for immediate ejection in the event of a serious breach - I have a one month notice clause along with a "serious breach, and no notice will be given". Illegal drugs and any incident requiring police intervention are just two examples.

unnameable

FreeBear said:

"Term 2. Lincence to occupy on a monthly basis subject to termination clauses below."

Make sure you have a termination clause that allows for immediate ejection in the event of a serious breach - I have a one month notice clause along with a "serious breach, and no notice will be given". Illegal drugs and any incident requiring police intervention are just two examples.

Many thanks! I'll make sure that's added too. Currently has a 1 month termination only

oldbikebloke

do you want a fixed term or not?

if you do, why?
Are you trying to lock in your lodger (and yourself) to living with each other for x period? Not always a good idea!

if you don't, then the agreement does not contain dates, it simply refers to rent payable per week / month (and of course ideally should allow for rent reviews at a future point in time).

by having a fixed term you then create the need for very carefully worded notice clauses to allow either side to end it prematurely 

greatcrested

I would never advise a fixed period for a lodger agreement. It's your home. What if things don't work out? Or turn sour? You need to be able to end the agreement without delay or diffuculty. Thre's nothing worse than sharing your home with someone you don't get on with or with whom issues have arisen.

Personally I'd have a written "1 week notice either way".

Freebear has rightly mentioned the word 'licence' - please don't tell us you've used the words 'tenant', 'tenancy' 'AST' or similar anywhere in your contract!!

See also my post here:

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

unnameable

Thanks for the replies.
The six month term was purely there as I'd used Rocket Lawyer to originally pull together the agreement and had assumed it was rolling like a tenancy. 
I refer to licence throughout thankfully!
The termination is currently 1 month either way, but I may amend as mentioned "for serious breach"

saajan_12

I use a rolling monthly contract, with 1 month notice either way, PLUS an 'accelerated notice' of 48 hours in the event of a material breach (eg illegal activity, violence, threats, willful damage to property, rent arrears etc). Reasoning is (in no particular order)

1. A month gives time for LL to relet or lodger to find alternative accommmodation
2. Wouldn't want longer notice or a fixed term, as if something goes wrong, its not an arms length tenant, you have to live together for that time. If a month was too uncomfortable to live together, either I or my typical lodger can afford to stay elsewhere / pay the rent overlap should we choose. 
3. Hopefully references would avoid this, but if somehting changes and there's a serious issue, either party can get out in 2 days. Again, given the location, both my typical lodger can afford to find somewhere else quickly or even get a hotel for a few days if needed, so this clause has been acceptable so far. 

greatcrested

saajan_12 said:

1. A month gives time for LL to relet or lodger to find alternative accommmodation

Perfectly good reasoning, but I still prefer a week. Where the reltionship is good/friendly, there's no reason a longer period can't be mutually agreed if one person says they want to leave but need a bit longer.

But a short contractual notice period is helpful in those situatins that are more awkward where it's best to end things asap.

Yes, a 'serious breach' clause can help, but when living together there can be situations that fall short of a 'serious breach' yet make for uncomfortable living together.....