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Whether you manage an extensive portfolio of rental properties or let a single room in your home, you are still classified as a landlord.
If you have the extra space, becoming a live-in landlord by letting a room in your home can be a great way to earn some extra income.
Whilst letting a room to a lodger may sound like a relaxed arrangement, live-in landlords still have their fair share of responsibilities and legal obligations to fulfil.
In this article, we will learn more about live-in landlord and tenant rights and responsibilities and find out how the role of a live-in landlord differs from that of a traditional landlord.
What is a Live-in Landlord?
Live-in landlords, sometimes called resident landlords, rent out part of their home to one or more tenants. To be classified as a resident landlord, the property you share with tenants must be your only or primary place of residence.
While rental properties typically serve as a primary source of income for traditional landlords, live-in landlords often take on the role more casually. Many people choose to rent out a spare room or unused space in their home to supplement their income, while others appreciate the company that having a lodger provides. In addition, the government’s Rent a Room Scheme offers a financial incentive for letting out extra space in your home, allowing landlords to earn up to £7,500 tax-free if they do so.
Live-in Landlord and Tenant Rights and Responsibilities
Whilst landlords renting out a room in their own home may be subject to fewer rules and regulations than a traditional landlord, it is equally important to understand and comply with all relevant laws and best practices.
Having a sound understanding of live-in landlord laws and regulations can help to prevent misunderstandings, conflicts, and potential legal issues whilst enabling landlords to establish a fair and amicable living arrangement with their tenants.
Failure to comply with the relevant regulations could result in legal disputes, penalties, or even prosecution.
This section will explore the various rights and responsibilities of live-in landlords and their tenants, covering health and safety regulations, maintenance obligations, eviction procedures and more.
Responsibilities When Establishing Yourself as a Live-in Landlord
Before live-in landlords welcome their first tenant, they should ensure they have informed all the relevant people of their plans; this may include:
Getting Permission to Let
If you own your home outright, you can skip this step. Those with a mortgage should inform their mortgage lender of their plans to let out part of their property. Leaseholders should check with the freeholder if the terms of their agreement allow them to let part of the property. Tenants should not sublet any rooms without first getting their landlord’s consent.
Checking Your Entitlement to Benefits and Discounts
The additional income you earn from letting a room in your home could affect your entitlement to any benefits or discounts on council tax you currently receive. For help determining whether becoming a live-in landlord is a good financial option for you, contact Citizen’s Advice. You should also inform your local benefits office if you currently receive any benefits and plan to rent a space in your home.
Updating Your Insurance
You should also inform your home insurance provider if you plan on taking in a lodger or tenant. You may be required to pay a premium or update your policy to landlord insurance. Failing to update your insurance provider could invalidate your policy.
Live-in Landlords: Understanding the Different Tenancy Types
As a live-in landlord, you must understand and respect your tenant’s rights to provide a fair and lawful service and avoid disputes.
Both tenants and live-in landlords have different rights and responsibilities depending on the living arrangements. Let’s examine some of the most common tenancy types and their meaning.
Tenant or Lodger?
Although these terms are sometimes used interchangeably, there is a distinct difference between the two.
An occupier is a tenant if they have exclusive use of at least one room within the property. This means the live-in landlord cannot enter their bedroom or the space they rent within the property without giving the occupier advance notice.
If the landlord, or someone else, has unrestricted access to the whole property, then the occupier is a lodger. Rather than having a tenancy, a lodger has a licence to occupy.
Excluded or Non-excluded?
A tenant’s rights depend on whether their licence to occupy or tenancy is excluded or non-excluded. This depends on several factors, including the terms of the agreement and the nature of their occupation.
Generally, excluded licences and tenancies have less protection than non-excluded ones because they are not protected by specific legislation such as the Housing Act 1988 or the Protection from Eviction Act 1977.
Here is a brief explanation of the differences between excluded and non-excluded tenancies and licences.
Excluded Tenancy
The tenant shares some areas of their accommodation, such as living spaces, the kitchen and bathroom, with their landlord or a member of their family but has exclusive possession of the room they rent.
Excluded Licence
The lodger shares all or part of a property with their landlord. They do not have exclusive access to any part of the property; the landlord has unrestricted access to all rooms.
Non-excluded Tenancy
The tenant shares a building with their landlord but has exclusive access to their accommodation and doesn’t share any areas other than stairs or storage with their landlord.
Non-excluded Licence
The tenant lives in a self-contained flat, but the landlord has unrestricted access to clean it or the right to choose tenants to share the flat with them. This arrangement is quite unusual.
We will learn more about the different levels of protection each tenancy and licence type offer later in this article.
Essential Tenant Health and Safety Obligations for Live-in Landlords
When it comes to basic tenant safety and wellbeing, the law makes little distinction between landlords who own multiple rental properties and those who let out a spare room in their home to a lodger.
Provide Adequate Facilities
According to general housing law, all live-in landlords must provide tenants or lodgers with kitchen facilities, a sink with hot and cold water, and a separate room with washing and toilet facilities. If the property is classed as an HMO, landlords must provide adequate facilities for the number of people in the property as stated in HMO regulations.
Fire Safety
The Furniture and Furnishings Regulations 1988 state that all furniture and furnishings should meet fire resistance requirements. However, these regulations apply to landlords letting a property primarily as a source of income rather than as their home, meaning they do not always apply to live-in landlords. However, abiding by the regulations anyway is in the best interests of everyone in the property. Live-in landlords should install smoke alarms in the property, ideally one on each floor. Landlords should also consider keeping a fire blanket and fire extinguisher in the kitchen.
Gas Safety
According to the Gas Safety (Installation and Use) Regulations 1998, all gas appliances must be in good working order, safe, and well-maintained. All landlords should arrange for a Gas Safe engineer to carry out an annual safety inspection, keep a record of all safety checks, and provide any tenants/lodgers with a copy of the safety certificate within 28 days of the inspection.
Electrical Safety
All landlords, including live-in landlords, must ensure that electrical installations and appliances are safe for use in the property they are letting. The Electrical Safety Standards in the Private Rented Sector (England) Regulations do not apply to resident landlords with lodgers, so there is no legal requirement to have an electrical inspection every five years. However, it is still recommended as you could be held liable if the electrics are unsafe and an accident occurs.
Property Repairs and Maintenance Rights and Responsibilities
Live-in landlords are responsible for ensuring that the property they are letting to tenants or lodgers is safe, free from hazards, and fit for habitation.
Equally, all tenants and lodgers have a duty to look after the property, and they are responsible for repairing damage caused by their failure to do so. Landlords can protect themselves from disputes over damages by clarifying these terms in the licence agreement.
Under the Landlord and Tenant Act 1985, the landlord is responsible for taking care of any major repairs and maintenance the property requires. However, in the case of lodgers, while the landlord is responsible for property maintenance and must keep the property fit for habitation, they are not obliged to replace or repair any damage to the property.
Tenancy Agreement or Licence to Occupy?
Live-in landlords are not legally required to supply a tenancy agreement to tenants or lodgers unless the tenancy is for a fixed term of more than three years. However, in most cases, it is in everyone’s best interests to lay out the terms of the agreement and the rights and responsibilities of each party in a written agreement to reduce the risk of disputes arising later down the line. This allows the landlord to set out any rules regarding matters like music, parties, and having guests over. Having the terms of payment set out within a tenancy agreement or licence to occupy agreement can also be helpful to landlords if they run into any problems with non-payment of rent.
Right to Rent Checks
All private landlords, including resident landlords, are required by law to check the immigration status of potential tenants or lodgers before they move in.
This check is called a ‘Right to Rent’ check. You can find out more information about how to perform a Right to Rent check on the government website.
Deposits for Live-in Landlords
Live-in landlords are not required to take a deposit from their tenants or lodgers, but doing so can provide the landlord with some financial security if the tenant were to cause any damage to the property or stop paying rent.
Unlike assured tenancies, live-in landlords are not required to protect the deposit under a tenancy deposit protection scheme. Still, they are advised to keep it in a separate bank account.
Access Rights for Live-in Landlords
The access rights that both live-in landlords and tenants have depend entirely on whether they have entered into a licence to occupy or a tenancy.
For tenancies, the landlord must give at least 24 hours’ notice before entering the tenant’s room or space within the property. No notice is required for licences to occupy where unrestricted access has been agreed upon.
However, landlords must note and respect that all tenants and lodgers have a right to ‘quiet enjoyment’ and should not be subject to unnecessary or unreasonable interference.
Live-in HMO Landlord Responsibilities
If you have more than one spare room in your home, you may let rooms to multiple people, but be aware that if you’re renting to three or more tenants from different households, your house will be classed as a house in multiple occupation (HMO).
Houses in multiple occupation (HMOs) are subject to stricter regulations than regular rental properties. If you are a live-in landlord operating a house in multiple occupation (HMO) in your home, you must comply with all the same HMO regulations as a non-resident HMO landlord.
This includes applying for an HMO licence, complying with stricter fire regulations, ensuring the property has adequate amenities for the number of tenants, and complying with minimum room size requirements.
Find out more about HMO landlord responsibilities in our blog:
Eviction Proceedings for Live-in Landlords
Landlords who welcome tenants or lodgers into their homes may find themselves in an uncomfortable or vulnerable position if their relationship with the tenant breaks down or the tenant stops paying rent.
For this reason, live-in landlords have more freedom when it comes to ending a tenancy early and evicting a tenant.
The eviction process varies depending on the tenancy type and the terms of the agreement.
It is an offence to evict an occupier before their tenancy or licence has been appropriately bought to an end. If landlords do not follow the correct eviction procedure, they may infringe on their tenant’s rights and face penalties or legal disputes.
Evicting a Lodger With an Excluded Licence
Lodgers with an excluded licence have less protection than those with a non-excluded tenancy or fixed-term agreement.
Landlords only need to give ‘reasonable notice’ of eviction to lodgers with an excluded licence. Reasonable notice should usually be equal to the length of the rental payment period, i.e. one week or one month.
With excluded licences, there is no requirement for a landlord to apply for a court order to evict the lodger if they refuse to leave. However, they can apply for one if they need to.
Evicting a Tenant With an Excluded Tenancy
Tenants with an excluded tenancy have a right to receive a notice period no shorter than their rental period.
Evicting a Tenant With a Fixed-term Agreement
Tenants with a fixed-term tenancy agreement can only be evicted by their landlord when the agreement has ended, if there is a ‘break clause’ contained within their agreement, or if they’ve broken the terms of the agreement.
If the tenant refuses to leave, the landlord must get a court possession order to evict them.
Evicting a Tenant With an Open-ended or Periodic Agreement
Open-ended or periodic arrangements can be ended at any time, but the landlord must give notice following the terms of the agreement. If the agreement doesn’t cover notice periods, then ‘reasonable notice’ should be given.
Knowing your rights and responsibilities as a live-in landlord can help you to build a fair and harmonious relationship with your tenants or lodgers, avoid disputes, and enjoy your role as a resident landlord whilst earning some additional income.
