How to Write a Lodger Agreement in England

A licence, not a tenancy

The defining feature of a lodger agreement is that it grants a licence to occupy, not a tenancy. A tenant has exclusive possession of a self-contained space; a lodger merely has permission to use a room in someone else's home and shares living space with the householder. Getting this distinction right matters because tenancies (particularly assured tenancies) carry statutory protections and eviction procedures that do not apply to lodgers.

Because the lodger is a licensee and not an assured tenant, the assured-tenancy regime and the court-based possession procedures that go with it do not apply. The arrangement is governed by the terms of the agreement and the common law, which keeps ending the arrangement far simpler than ending a tenancy — provided the resident-landlord conditions are truly met.

You must be a genuine resident landlord

The lodger's status as an excluded occupier depends on you living in the same property as your only or principal home and sharing some accommodation — such as a kitchen, bathroom, or living room — with the lodger. If you do not actually live there, or you let a self-contained annexe with its own facilities that the lodger uses exclusively, the occupier is likely a tenant, not a lodger, and a lodger agreement is the wrong document.

Keep control of the property. A well-drafted lodger agreement makes clear that the householder retains possession of the whole property, may enter the lodger's room for cleaning, inspection, and maintenance, and provides the room together with shared use of communal areas. That shared, non-exclusive occupation is what keeps the arrangement a licence.

Excluded occupiers and reasonable notice

A lodger who shares accommodation with a resident landlord is an excluded occupier under the Protection from Eviction Act 1977. This is what allows you to end the arrangement without a court order and without the notice a tenant would receive — you do not need to obtain a possession order to recover the room.

That does not mean the lodger can be removed on a whim. At common law an excluded occupier is entitled to reasonable notice, which is generally taken to be at least one full period of the licence — so for rent paid monthly, a month's notice is the safe benchmark, and a notice shorter than one rental period may be open to challenge. You must never use or threaten violence to remove a lodger; doing so can be a criminal offence even where a court order is not required.

Rent-a-Room, Right to Rent and deposits

Resident landlords can use the government's Rent-a-Room scheme to receive rental income up to the annual threshold tax-free. It is worth noting the scheme in the agreement so both sides understand how the income is treated, though it does not change the lodger's obligations.

Right to Rent checks under the Immigration Act 2014 apply to lodgers just as they apply to tenants. Carry out the check and confirm the occupier's right to rent in the UK before they move in.

You can take a deposit, but note that because the lodger is an excluded occupier, a resident-landlord lodger deposit does not have to be protected in a tenancy deposit protection scheme — the TDP rules apply to assured shorthold tenancies, not lodger licences. Keep any deposit reasonable relative to the rent, hold it against unpaid rent or damage beyond fair wear and tear, and return it within a reasonable time after the lodger leaves, less any lawful deductions.

Putting the agreement together

A complete lodger agreement identifies the householder and lodger, describes the room and the shared areas, sets the rent and how bills and council tax are handled, and records the house rules on guests, smoking, pets, and cleaning. It should state plainly that the arrangement is a licence and that the lodger is an excluded occupier, and set out how either party ends it.

1. 1.Confirm you are a genuine resident landlord who lives in the property and shares facilities with the lodger.
2. 2.Identify the parties, the room let, and the shared areas, and state whether the room is furnished.
3. 3.Set the rent, the payment period, and whether bills and council tax are included; note the Rent-a-Room scheme if you use it.
4. 4.Decide whether to take a deposit and, if so, set a reasonable amount (no TDP scheme required for an excluded occupier).
5. 5.Complete a Right to Rent check before the lodger moves in.
6. 6.Set a notice period of at least one full rental period, and have both parties sign and date the agreement.