If you rent out a room in your own home, you might assume the same rules apply as letting out a separate property. They do not. The legal framework for lodgers is fundamentally different from the framework for tenants, and understanding this distinction is essential. Using the wrong type of agreement can give your occupier rights you never intended.
What Is a Lodger?
A lodger is someone who lives in your home and shares living accommodation with you. The key features are that the landlord lives in the same property, the lodger does not have exclusive possession of any part of the property, and the landlord typically provides services such as cleaning or meals. A lodger is a licensee, not a tenant. They have a licence to occupy rather than a tenancy.
What Is a Tenant?
A tenant has exclusive possession of a self-contained property or a room where the landlord does not reside. The tenant can lock their door and exclude the landlord except for pre-arranged access. A tenant has an assured shorthold tenancy (or, from 1 May 2026, a periodic assured tenancy under the Renters' Rights Act 2025) and benefits from full statutory protection.
Key Legal Differences
The differences between lodgers and tenants are significant:
- Security of tenure: A tenant can only be evicted through the court process using Section 8 grounds. A lodger can be asked to leave with reasonable notice.
- Deposit protection: A tenant's deposit must be protected in a government-approved scheme within 30 days. A lodger's deposit does not need to be protected in a scheme, although it is good practice to handle it fairly.
- The Renters' Rights Act 2025: The RRA applies to assured tenancies. Since a lodger does not have an assured tenancy, the RRA does not apply. You do not need to provide the written statement of terms, you are not bound by the pet consent rules, and Section 8 grounds do not apply.
- Eviction process: To evict a tenant, you must obtain a court order. To ask a lodger to leave, you give reasonable notice, typically equal to the rental payment period. You do not need a court order, but the Protection from Eviction Act 1977 still requires reasonable notice.
The Rent a Room Scheme
If you let a furnished room in your main home to a lodger, you may qualify for the Rent a Room Scheme, which allows you to earn up to £7,500 per year tax-free. This scheme applies to lodgers and does not apply to tenants in a separate property. It is a significant financial benefit and another reason to understand your arrangement correctly.
When a "Lodger" Is Actually a Tenant
This is where many landlords get caught out. If you do not actually live in the property, your occupier is not a lodger regardless of what the agreement says. If you live in the property but the occupier has a self-contained area with a separate entrance, they are likely a tenant. Courts look at the substance of the arrangement, not the label, as established in Street v Mountford [1985].
Common situations where a "lodger" is actually a tenant:
- The landlord has moved out but continues to call the occupier a lodger
- The occupier has a self-contained annexe or basement flat
- The landlord retains a key but never actually enters the occupier's room or shares living space
- The agreement says "licence" but the occupier has exclusive possession
If a court determines your lodger is actually a tenant, they will have full statutory protection. You will need to protect their deposit, comply with all tenancy regulations, and use Section 8 grounds to regain possession.
Which Agreement Do You Need?
If you live in the property and share living accommodation with the occupier, use a lodger agreement. If you do not live in the property, or if the occupier has exclusive possession of a self-contained area, use a tenancy agreement compliant with the Renters' Rights Act 2025.
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For more on the distinction between tenancies and licences, read our guide on tenancy agreements vs licences to occupy. Check your compliance status with our free RRA Compliance Checker.