Becoming a resident landlord
You will become a resident landlord if you let out a room in the home that you live in. In these circumstances, you do not need to give the tenant as much notice to end their tenancy and they will not be able to challenge the agreed level of rent.
You will need to check that your mortgage lender will let you rent out a room. Also, if you are renting the property yourself, you will have to check that you are allowed to sublet your room. It is illegal to sublet a room in your property without the landlord’s permission.
Tenancy or license to occupy?
If you are letting a room which you cannot enter without permission and is exclusively for the person renting the room, then the rent would be a tenancy. If you have permission to enter the room and they share with someone who they did not choose, then the rent would be a license to occupy.
Excluded or non-excluded tenancy or license
An excluded tenancy or license is where your tenant shares rooms with you and your family, such as the kitchen or bathroom. A non-excluded tenancy or licence is where you do not share any rooms with your tenant.
When you let a room, you should ensure that you provide access to a kitchen and a bathroom, whether it is shared or separate.
There is no set amount of time that a tenancy should last, so it is a good idea to agree on a period before the tenancy begins. If you cannot agree on a length then it will automatically become a periodic let, which can run indefinitely from month to month. Licenses can also be arranged in these ways. Written tenancy agreements can be a good way to avoid any confusion, but they are not compulsory unless the rent has been agreed for at least a three year period.
You will be responsible for any repairs or maintenance needed on the property and if you rent out your property to more than one person you may require a House of Multiple Occupancy license, which will require your house to have certain features before you can rent it out to multiple people.
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