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Something I can’t quite figure out. Some people desperately need a place to live and I’m happy to let them live there, but I require other rooms when I am visiting, a few times per year. As I don’t live there, they’re not lodgers, but they don’t have exclusive use of the property either. How does this all work, if at all?
You can rent out rooms but if you are a non resident landlord (do you live elsewhere)? then they probably need to be on an AST. You aren’t allowed to call people lodgers if you are non resident. I considered this as I live overseas and like to visit the UK a few months a year, but I’m definitely non resident and think this arrangement would be fraught with difficulty.
I live abroad so I know they’re not lodgers but I didn’t know they could have an AST for part of the property. 👍🏽
Yes, very common to rent a room and have common areas then accessible to the tenant.
Ace, thanks.
It’s going to have to be a lodger situation to be fair, even if you don’t live there yourself because you are going to want to use part of it at some point and even “a few times a year” would be a massive red flag so just be careful and ask for better advice that isn’t Reddit…
There is some key points you have missed out, where will you be staying when not there? If it is somewhere else then that is your main residence not this one so I don't think you can have lodgers because they will actually be seen as ast via hmo status I think.
If you will be living/travelling abroad then you will be seen as a non resident landlord and tax will be due at source for any rent payments.
I do think you can set it up as HMO rent rooms out and occasionally use a room but you.cant interfere with the other tenants for your short stays.
Hi, thanks for the points, yes I am a non-resident and live abroad, hence I know they can’t be lodgers. You say AST via HMO, does this mean that tenants in an HMO have normal ASTs like other tenants who have exclusive use of the property? I did not know that was possible so this sounds like the correct thing.
They have exclusive use of their bedroom + shared access to communal areas.
You do need to make sure that the tenancy agreement specifies which bedroom they're renting.
When you do return a few times a year, don't throw your weight around. It's not a week-long inspection, it's you staying in their home for a week - and an opportunity to get little DIY jobs dealt with.
It might be your property and pied-a-terre, but it's their home.
I have decided to remove myself from the whole plan and rent out the entire place on an ordinary AST, less hassle and uncertainty for tenants and well, much the same for me.
It might be for the best. If you're only there a few times a year then it might work out better financially to rent out all rooms and just get a hotel occasionally.
Aye, I think it’s best to isolate my personal life from this stuff and try to be more detached.
Yes, HMO tenants have a regular AST.
Thanks, this is the ‘aha’ moment that I haven’t been able to figure out. Sounds like the best policy, just need to apply for said licence.
I think you will need to make sure you meet the HMO requirements assuming it's a HMO, also I think landlord is usually liable for council tax not the tenants.
Or given the cost and trouble, is it better to keep to below the HMO threshold?
I am changing plans and removing myself from the whole equation, and renting out the entire place on an AST to bypass all this stuff.
Yes just state clearly that there is a room that’s yours. You would probably not be able to claim they are lodgers but there’s no reason they can’t be tenants. Just be clear.
Do an ast for the individual room leave one room for yourself. Put locks on all the bedroom doors. Just be aware you CAN'T move in permentally yourself and then claim they are lodgers. Normally if you wanted them gone you would have to section 21 but with that disappearing soon then I know they are adding reclaiming your property to live in under section 8 but might end up with a weird loop hole situation.
Edit. Sorry I wrote can rather than can't for moving in and them becoming lodgers.
Thanks for the pointers, super helpful, especially on the potentially unresolved reclamation.
Unless you made part into a separate dwelling. It is common to have rooms/ lofts/ outbuildings removed from the tenancy for landlord storage.
The problem here is one an ast you have to get the tenants agreement to visit the property even the bits which are segregated as I understand.
I would approach a reputable property management company and see what they say.
Ah interesting, thank you.
I'd make sure they you live there at least one overnight each month. A visit to the property probably doesn't put you in a resident bracket.
Then they are lodgers. Otherwise they are closer to being tenants as you've given them exclusive rights to live there by themselves. I wouldn't see occasional visits as you being a resident unless you lived there at least one night or so a month and used all the facilities in the common area.
That will never fly in court and you know it.
Why? The laws are very vague on what constitutes a resident. Happy to be corrected if you can point to legislation
https://www.legislation.gov.uk/ukpga/1988/50/schedule/1/part/I/crossheading/resident-landlords
It has to be the only / main residency of the landlord, one day a month won’t cover that
A contract can include anything legal.
If you agree to it. You can be made to sleep in the shed as long as its safe.