As a homeowner, it can be a great way to earn extra income by renting out a part of your property to a lodger. However, before a lodger moves in, it is important to have a basic lodger agreement in place to protect both parties.
A basic lodger agreement is a legally binding document that outlines the terms and conditions of the rental agreement. It sets out the rights and responsibilities of both the homeowner (landlord) and the lodger (tenant). A lodger agreement is also known as a room rental agreement or a housemate agreement.
Here are some of the key elements that should be included in a basic lodger agreement:
1. Description of the rental property
The agreement should start with a description of the rental property, including the address, the room or rooms being rented, and any common areas that the lodger is allowed to use.
2. Rent
The agreement should state the amount of rent that the lodger will pay and the payment due date. It is also important to mention the consequences of a late payment or failure to pay rent.
3. Security deposit
The agreement should also mention the amount of security deposit that the lodger is required to pay and the conditions under which it will be returned.
4. Tenancy period
The agreement should state the duration of the tenancy, whether it is a fixed term or a rolling agreement. It should also mention the notice period required for termination of the agreement.
5. Use of facilities
The lodger agreement should specify the use of facilities such as the kitchen, bathroom, laundry, and any other common areas. It should also state any restrictions on the use of these facilities.
6. Rules and regulations
The agreement should include any rules and regulations that the lodger is required to abide by. This could include noise restrictions, hygiene standards, and smoking policies.
7. Maintenance and repairs
The agreement should state the responsibility of the landlord and the lodger for maintenance and repairs. It should also mention the procedure for reporting any repairs or maintenance issues.
8. Insurance
The lodger agreement should advise the lodger to take out adequate insurance to cover their personal belongings. The landlord should also have insurance to cover the property.
9. Termination of tenancy
The agreement should mention the circumstances under which the tenancy can be terminated, such as breach of contract, non-payment of rent, or damage to the property.
In conclusion, a basic lodger agreement is an essential document that protects the rights of both the homeowner and the lodger. It ensures that both parties are aware of their responsibilities and obligations. A lodger agreement can be drafted by a legal professional or downloaded online from reputable sources. It is advisable to have a lodger agreement in place before renting out a part of your property to a lodger.