Knowing the importance of a lodger contract is key if you are planning on renting out a room or a space in your house. If you need to make ends meet and you find that renting a bedroom in your two-bedroom apartment is the way to stay afloat, legally protecting yourself and drafting a lodger contract is the best way that you can stay protected and make money at the same time. Let’s check out the details of a lodger contract and the difference between lodgers vs. tenants.

The importance of having a lodger contract

First question – what is the difference between receiving a tenancy and having a license to own a property? A tenancy is simply the interest in owning a patch of land or property for a specific prayer of time. In this case, you will find that the tenant of the property is only “owning” the property for a pre-set determined amount of time. During this period, the tenant is in charge of all things that happen on the property.

On the other hand, when it comes to licenses of a property, the license is the permission of being able to live on the land or occupy a building, such as a house, apartment, or cabin. However, the main difference between a tenancy and a license is that the license does not give the occupant any control of the land – they are solely allowed to live here without consequence.

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But why does a lodger agreement matter?

There are a few key reasons why having a lodger contract matters for legal reasons.
● Possession rules – the first reason that having a lodger contract matters is for possession reasons. When you are the tenant of a building, the occupier is typically granted use of one room in the house or a specific space – such as a floor of the house or a room and a living area. The main difference between a tenancy agreement and a lodger agreement is that the lodger does not have exclusive possession of any space in the house.

● Eviction – generally speaking, it is usually easier to get rid of lodgers than tenants who are not following your rules. If you set forward ground rules in your property and the lodger is not following them, the lodger contract will make it slightly easier to get rid of any unruly habitants. However, with a tenant agreement, this is typically harder and more time-consuming.

● Deposits – the next difference between a lodger contract and a tenancy agreement is that the lodger landlord does not need to keep the deposit of the lodger when they are renting a space or a room. However, with a tenant, they will have to give back the deposit when leaving if the tenant did nothing wrong with the property or violate their contract.

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Make sure that you read up on the details of a lodger contract before signing anything! If you are the owner of a house, consider crafting up both a tenant agreement and lodger contract to see which one works best for you. The best part about using a lodger contract is that you can avoid any legal trouble, evict an unruly habitant, and you do not need to return the deposit.