Use this template for a lodger agreement with guarantor

by Kate Mccormick - Solicitor

Use this guide to find out exactly what information you need to gather and fill out this form correctly

A Guide to Our Lodger Tenancy Agreement (with Guarantor)

This Lodger Tenancy Agreement (with Guarantor) permits a landlord to set out the basis for the grant of a tenancy over a room in a furnished or unfurnished flat or house in which the landlord also lives. It is for use when the landlord is not completely confident about the lodger’s financial situation and so requires a third party to guarantee the obligations of the lodger, such as payment of rent.

Clauses in this Lodger Tenancy Agreement (with Guarantor)

Cover page - you will need to insert the names of party 1 (the Landlord), party 2 (the Lodger) and party 3 (the Guarantor).

Between – this clause defines whom the Agreement is granted between. You need to insert the details of all parties to the Agreement here including their address and, if either party is a business or limited company, their business/company name, registered number and registered office or trading address.

Definitions and Interpretation – here you will need to insert details of the deposit, first rent payment date, the address of the property and description of the room to be rented within it, the rental amount and rent payment date and the length of the term of the tenancy to be granted.
Contents – you should draw up a separate inventory document listing all the equipment, furniture and other items in the Room and any other equipment and items that the Lodger may use in the common areas. This inventory should be agreed and signed by the Lodger at the start of the Tenancy and attached to the Lodger Tenancy Agreement.

Grant of the Agreement – you need to provide details of the common areas and facilities in the Property that the Lodger will be allowed to make use of, in addition to their Room. The Landlord will be able to terminate the Agreement at any time on the giving of the notice period specified in this clause. You can make this any period that is reasonable.

Rent - Normally the rent is defined as being exclusive of VAT and the Lodger agrees to pay the Rent ‘inclusive’ of any VAT that may be chargeable on it. If the Landlord is VAT registered, you may wish to include a reference to VAT in this clause.

Deposit – Usually the Lodger is required to pay a deposit at the start of the Tenancy, which is normally equal to one month’s rent. This can be set off at the end of the Tenancy against the cost of any damage caused to the Property and/or items in the inventory by the Lodger, other than fair wear and tear, or any arrears of rent or bills owing by them. There are rules requiring that a landlord protect any tenant’s deposit by registering with one of the Government’s approved tenancy deposit schemes and provide details of this to the Lodger.

Lodger’s Obligations – this clause sets out the Lodger’s obligations under the Tenancy in respect of the Room and Property and their Contents. Clauses 5.8 to 5.10 are discretionary.

Assignment and Subletting – this clause prevents the Lodger from assigning or sub-letting the Agreement to someone else, without the Landlord’s consent.

Utilities at the Property – here, you can choose between two options: either the utility bills will be apportioned between the Lodger and Landlord in an agreed proportion or such charges will be deemed to be included in the rent and charge a higher rental amount to cater for this. You could agree on a different arrangement and if so, should set out its details here.

Landlord’s Obligations – the Landlord is obliged to insure the Room and may or may not agree to insure its contents. Either way, the Landlord is required to keep the Room and the contents in a good state of repair. If the damage is caused by the Lodger, the Landlord can off-set the costs of the repair from the Lodger’s deposit.

Guarantee and Indemnity – This clause legally appoints and defines the obligations of the Guarantor. If the Lodger is unable to fulfil their obligations, such as paying the rent, the Guarantor will have to meet those obligations on behalf of the Lodger or fully compensate the Landlord for doing so, so the Landlord has double the security.

Ending the Agreement – you should decide on how much notice each party needs to give to end the Tenancy and enter this into clause 10.4. This should be a reasonable period. If no notice is given, the Tenancy will continue for the term stipulated in the Definitions and Interpretation clause.

Notices and Correspondence – this clause explains how notices are to be sent from one party to the either, such as notice of termination. You should include clause 11.3 if you allow such notices to be set by email.

Law and Jurisdiction - If you are based abroad, you may wish to change the jurisdiction clause to reflect this and/or make it non-exclusive. Where all parties are based in the UK, the jurisdiction should be exclusively that of England and Wales.

Signature Clause - you need to insert the names of all parties and the officers signing on their behalf if they are a company or business. All parties need to sign the Agreement here. Once all parties have signed the Agreement it should be dated on the Cover Page and also at the top of Page 1. This is the date that the Agreement will commence. All parties should keep a copy of the signed Agreement.