Things to Consider before Letting a Room
A guide to the preliminary issues to consider before letting a room in your home.
Should The Let Run For A Fixed Time Period?
You can set the length of the letting to suit you and your tenant. There is no minimum requirement for the duration of a letting.
How Long Should The Letting Run For?
This is up to you and your tenant. A letting that runs indefinitely from one rent period to the next is called a ‘periodic’ letting and a letting that is agreed for a set number of weeks, months, or years, is called a ‘fixed term’ letting.
Why Does It Matter How Long The Letting Will Run?
A tenancy must be for a set amount of time or a set period, i.e. an agreed term (for example, 6 months or weekly periods.)
Licences are more flexible because, although a licence often runs for a set amount of time, it can also, in an informal arrangement, be open-ended. The nature and length of the let can be important if you want or need to give notice to your tenant(s) to end their occupancy.
Do I Need Permission To Let Out My Home?
If you own the property outright and have no mortgage (so are an owner-occupier), you do not need permission from anyone to let a room in your property. If you do have a mortgage over the property, you should get the mortgage provider’s permission first because it is likely that letting a room without their permission will breach the terms of your mortgage agreement.
If you are a long leaseholder, you should check the terms of your lease to ensure that you are not breaching it if you let a room in the property.
If you have a mortgage or are a long leaseholder and your rights to the property cease, your tenant’s rights will cease at the same time because they are, in reality, a sub-tenant.
I’m A Tenant, Does That Mean I Can’t Sub-Let Part Of The Property Or Take In Lodgers?
This depends on the type of tenant that you are. If you are a secure council tenant you can take in a lodger. However, you are not allowed to sub-let any part of the property without the council’s prior written consent.
If you are a private tenant you must check the terms of your tenancy agreement so that you are not in breach of them. If nothing is provided about this situation within your tenancy agreement, then you are allowed to sub-let because there is nothing to the contrary stated in the agreement. If your tenancy agreement states that sub-letting is not allowed, which is the general rule, a tenant may still ask for the landlord's permission.
Please note that periodic tenancies, assured tenancies and assured short-hold tenancies have terms implied into them prohibiting sub-letting.
If I Let Part Of My Home Will My Home Insurance Policy Be Affected?
Often insurance policies increase when you share your home because of damage caused to the property by the tenant. You should make sure that your home and contents insurance policies extend to cover the let part of the property, for your own protection.
Do I Need Planning Permission From The Council?
You do not need planning permission from your local council for letting rooms in your property. However, if you are intending to make physical alterations to the property, for example moving walls or extending the property, you must seek planning permission before starting any works.
If you let rooms in your property to several people, the property may be classed as a House in Multiple Occupation (HMO) by the local council. This means that the council may licence the HMO for the protection of the occupants. The HMO will not apply if there are only two sharers.
Please note that if there are four or more sharers in the property and the property is three storeys high or more, the property will be subject to a mandatory (HMO) licence.
If you have any questions regarding HMO licensing please contact your local council’s Housing Department or Environmental Health Department.
If My Property Is An HMO Does That Impose Obligations On Me As Landlord?
You will be subject to management regulations if your property is an HMO. You will be responsible for the cleanliness of shared areas, the safety of the property, the disposal of rubbish and the provision of toilet and washing facilities etc. If any of the requirements of the HMO should not be met, the council can take action against you to compel you to fulfil such requirements.
How Do I Prevent Problems From Occurring?
You can ask prospective tenants to provide references from their previous landlord or employer, their last couple of pay slips, to confirm they can afford the rent, and any other relevant documentation. You are entitled to take a deposit before they move in, which will provide security for you should they leave the property without paying any due rent. Usually a deposit is one month’s rent.
You should have a written agreement stating how the deposit shall be held and the circumstances in which it can be legally withheld. We recommend that you draw up an inventory of furniture and objects in the let property to prevent any disagreements as to who owns what when the letting comes to an end. You could also take photos of the inside of the property before the letting begins as evidence of what is yours and its condition.
It is worth setting down terms within the written agreement for your protection on what may seem trivial matters. Things like whether guests can stay and when music can be played are better included in the written agreement, to prevent disagreements later on.
If you take a deposit this should be placed into a separate bank account so that it is easily identifiable if a dispute arises. If you are the landlord of an assured short-hold tenancy, special rules apply to the deposit. Please see our information on our Assured Shorthold Tenancy Agreement and our Guide to Tenancy Deposit Schemes for an explanation of these rules.
If the prospective occupier cannot afford the deposit, there are specific schemes operating in certain areas which guarantee your rent or the costs of any damage to your property, for a set amount of time. If this applies to you then please check with your local council’s Housing Department or Housing Advice Centre.
Why Should There Be A Written Agreement Between Me And The Occupier?
You don’t need a written agreement if the tenancy is to run for a fixed term of less than three years. However, we strongly recommend that you always have a written agreement in place regardless of the term of the occupancy because it can prove what has been agreed in the event of any dispute.
What Should I Write In The Agreement?
You can download a Tenancy Agreement Template from us and use our how-to guide for assistance. The agreement should contain details of the term of the letting, the amount of rent and when rent is to be paid, the amount of notice either party must give the other to terminate the tenancy and any services that you will provide. Under The Unfair Terms in Consumer Contracts Regulations, any term in the written agreement deemed to be unfair will be unenforceable.
Who Do I Contact For Further Advice on Letting a Room?
Your local Citizens Advice Bureau and local Housing Department can also offer free advice on what you need to do.
