A lodger can help you make some extra cash out of a spare room in your home, and they can also give you a bit of company.

But what is a lodger, exactly? They’re someone who lives in your home, either for free or for rent.

What’s the arrangement with a lodger?

Lodgers share living space with you – usually the kitchen, reception rooms and bathroom. They typically have a room, but not exclusive use of it. Some lodgers only use their room during the working week.

You might agree to clean for your lodger and provide them with a laundry service, and meals. It’s important to manage expectations around these services, as well as around privacy and visitors.

How will a lodger affect your finances?

A lodger might have an impact on the benefits you receive, and there may be tax implications – for example the income from a lodger is taxable, and you may lose a single person discount on your council tax. So it’s worth factoring these in when you decide how much your lodger will pay.

As well as financial implications, there are some legal implications to having a lodger. You should familiarise yourself with your rights and your lodger’s rights, and learn about good practice for letting rooms in your house from Gov.uk.

Is your home in good enough condition for a lodger?

It’s particularly important to keep your home safe and secure if you have a lodger. You’ll have to get gas appliances checked annually, and you’ll need to meet certain fire safety standards.

And of course, you’ll need to provide a suitable room that is safe and clutter-free. If the room you’re planning to offer your lodger is presently full of stuff, you may want to move some items into storage – and of course, factor the cost of renting a storage unit into your planning, as well as the cost of insuring your stored goods.

Finding a lodger

People find lodgers through word-of-mouth or via room-wanted adverts and social media posts.

Who can be a lodger?

In the UK, you’ll need to do an immigration check on your lodger to confirm they have a right to rent. The Home Office has some information about this.

A lodger agreement

A written agreement between you and your lodger should lay out:

• the deposit
• the rent, and when you need it paid each month
• any services like laundry, cleaning and meals
• a list of furniture in the lodger’s room

Some lodger agreements are fixed term (that is, they last until a given date) and others are more open ended.

Your agreement should also include clauses to help you if things don’t work out. For example:

• a notice period (if the agreement is not for a fixed term)
• a break clause that lets you end the agreement early

You may also want to talk over your expectations about helping around the house, use of possessions like the TV, privacy and noise levels.

So now you know a bit more about life with a lodger.