Updating post from Reddit.
Hello, I’m looking for some pointers and advice. I have a 3 bedroomed property, and I am the sole resident and liable for mortgage repayments.
I am wanting to let out one room, the other areas will be shared (kitchen, bathroom, living room, small office space). The room is a suitable size for a double bed and furniture.
I would like to include the price for mortgage contribution, council tax and utilities to the rental fee.
However, after reading various templates online, AST only seems to cover leases with a non-resident landlord, and I would be a resident landlord.
I do not want to pay a fee for a solicitor or website to write the agreement for me, as there is enough information online that I am fairly certain I would be able to write this myself manually.
Specifically, I am wondering if there are any particular clauses or technicalities I would need to ensure are within the agreement for a property where there is a live-in or resident landlord. Or if there are any caveats I may not be aware of.
Thanks in advance.
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TLDR: I am looking to write a tenancy agreement for a single room rental as a resident or live-in landlord, and need to know of anything that should be included relating to that situation specifically.
You wouldn’t be using an AST as these are for when the tenant has exclusive use of the property. You want a lodgers agreement.
So I’ve tried to look for specific agreement templates relating to this: “Resident Landlord Agreement” or “Lodgers Agreement” etc.
However, I’ve not been able to find any that are free or just visible. If you have any advice on where I may able to find one, that would be appreciated.
I’m not looking to make a profit off of the property, merely with help maintaining payments due to a change in circumstances that has rendered me unable to work full-time.
It would be a lodgers agreement, not an AST.
Spareroom.co.uk sell a reusable template for £7.50. At that price point, trying to reinvent the wheel is silly.
Whatever the scenario, I's always advise joining a landlord association, like the South West Landlords Association (Homepage - South West Landlords Association). It's only fifty quid a year and they have lots of suitable templates. Plus, incredibly, when you phone them up for advise an actual human answers the phone!
The Trade Body for Landlords (the NRLA) has a Lodger Agreement Template for you. You do not want to write your own, unless your a solicitor/lawyer specialising in housing.
>I would like to include the price for mortgage contribution, council tax and utilities to the rental fee.
No. Do not say they are 'contributing to the mortgage' or council tax in any way, as they could claim a beneficial interest in the property. You charge rent; charge whatever amount you need to ensure the mortgage and council tax are covered plus a profit. You can charge pro-rata for energy, but that complicates matters and opens avenues for disputes and strained relationships. I would prefer to just include it in the rent.
I would not state in the clause that it would be a contribution. It would be broken down as a rental fee and an amount of council tax per month to be paid within the agreed amount.
E.g (completely random numbers I’m just going to put here for the purposes of an example)
‘Total per month to be made payable on the last Friday of the month to the landlord via standing order or bank transfer: £550
This includes rent, council tax, utilities. Breakdown: Rent: £300 Council Tax: £100 Utilities £150’
This is subject to change due to the rolling nature of the agreement (obviously to account for changes in utility prices), with 1 months’ written notice from the landlord.
I work in the government sector and have seen countless tenancy agreements to understand the wording, and there are lots of templates viewable online that also provide examples of the clauses and the breakdowns included.
Just wanted to clarify that I’m not claiming to be an expert, and I appreciate the link you provided.
You need to join Nrla. Do not do it yourself. The fact that you're thinking of putting a clause of paying towards mortgage would be a cause for concern.
Join the nrla for their nominal fee. Use their advice line for free after registration to walk you through this process.
I wouldn’t specifically write in there that it would be a mortgage contribution, it would be a rental payment in the clause itself, obviously. The wording was more for clarity of what my expectations were for the payment agreement when writing the post itself.