Licences to Occupy a Room in the Owner’s House

If you are letting out a room in your own home to a lodger, the lodger will have a licence rather than a tenancy. Even though renting a room can feel more informal than granting a tenancy, it is advisable to have a written agreement setting out what is required of the owner and the lodger. If practical matters are considered and documented at the outset, this should reduce the scope for disputes during the term of the lodger agreement.

These templates are suitable for use in England and Wales unless a landlord in Wales has served a notice before a licence is granted stating that is to be an occupation contract. Under the Renting Homes (Wales) Act 2016, if a licence is to be granted to share accommodation with a landlord (which the landlord occupies as their only or principal home), this will not be a standard occupation contract unless the landlord has given a notice to the licensee before the contract is made, stating that it is to be an occupation contract (‘the notice’). Model written statements for the occupation contracts can be found in Renting Homes Wales.

Owners should ensure they comply with any legal requirements prior to entering into a licence to occupy. Our Compliance Checklist can be used to check that they are complying with housing law before the licence is entered into and during the licence period. There are a number of template letters and documents which can be found in the Residential Landlord and Ownership Documents to assist with these requirements.

These Licences to Occupy a Room in the Owner’s House cover both full-time and part-time (e.g., weekdays only) occupation by a lodger. They are drafted using plain English so that they can be easily understood.

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