Are you looking to rent out your property but unsure whether to offer a lodger`s agreement or a tenancy agreement? While both provide legal terms and conditions for renting your property, they differ in several ways.
A lodger`s agreement is a document that outlines an agreement between the landlord and tenant for a room in a shared property. This type of agreement is generally used when the landlord is living on the property themselves and renting out a spare room. A lodger has fewer legal rights than a tenant and is essentially a guest in the landlord`s home.
On the other hand, a tenancy agreement is a legal contract between a landlord and tenant for the whole property. This type of agreement is used when the landlord is not living on the property and is renting out the entire property. Tenants have greater legal rights than lodgers and are entitled to exclusive use of the property.
One of the main differences between these two agreements is the amount of notice required for ending the agreement. With a lodger`s agreement, a landlord only needs to give reasonable notice to end the agreement, whereas with a tenancy agreement, the landlord must give at least two months` notice in writing.
Another difference relates to the level of responsibility for maintaining the property. With a lodger`s agreement, the landlord is responsible for any repairs or maintenance. However, with a tenancy agreement, the tenant is usually responsible for minor repairs.
Additionally, the terms of payment under each agreement are different. Lodgers usually pay a fixed amount per week or month, which includes rent and bills, while tenants are responsible for paying for their own bills.
When it comes to insurance, landlords are usually advised to have a different policy for lodgers than for tenants. A standard home insurance policy may not cover claims from lodgers, so landlords need to ensure they have the correct insurance in place.
In conclusion, while both a lodger`s agreement and a tenancy agreement provide legal terms and conditions for renting out a property, they differ in several important ways. Landlords should carefully consider which type of agreement is best suited to their situation and seek professional advice if necessary.