What To Know Before Sharing Your Home With a Tenant?

If you have a spare room, you could get a lodger to make some extra income. However, you will require a legally binding free UK tenancy agreement template PDF. In this post, we’ll set out key considerations for sharing your home with a renter.

Things To Know Before Sharing Your Home With a Tenant

When You Should Share Your Home?

If you own a home but live alone, you might want a housemate for company. You can even use this as an opportunity to earn passive income.

However, there is a risk of wires getting crossed. Many people aren’t comfortable living with their landlord, after all.

You may have rooms in the house you don’t use. The spare room might even be gathering dust. Finding a lodger lets you make the most of the space. However, you must screen them well and plan how to co-habit with your own tenant.

How Tenant Screening Works?

When you put together a rental application, you’ll have a chance to learn more about the people who respond. You can even ask specific questions to “test” your compatibility with them. Online rental agreement templates already include the important sections.

However, the main purpose of a rental application is to help you screen tenants. You’ll be able to easily narrow down the applicants or simply see which ones are most reliable. Here’s what you’ll mainly be looking for:

• Consistent income: You’ll need a tenant who can pay their rent without a problem. Your application should ask for proof of income and their employment history.
• Good rental history: If an applicant has rented before, you should know the details. For example, they should be upfront about if they’ve been evicted before.
• High credit score: In addition to good income, the renter must have a high credit rating. A low score means they’ll likely struggle to secure or repay rental loans.
• Good references: You’ll need someone else to say if an applicant will be a good renter. You should ask for at least two references, possibly including their ex-landlord.

You can also screen tenants through your rental listing. Make it clear if you don’t allow pets, and you shouldn’t receive any applications from pet owners. You’ll also have a chance to check if the tenant has a criminal record before approving their application.

Establishing Boundaries as a Live-in Landlord

Living with a landlord could be a strange experience for any tenant. You might also find it hard to adjust. For many, the separation between landlords and renters is a lot more comfortable. You’ll only maintain a healthy dynamic if you establish firm boundaries.

For example, your tenancy agreement should set out each party’s expectations. So long as they don’t intend to break the rules, they shouldn’t have anything to worry about. However, they may still not enjoy the idea of you being present to “monitor” them.

On the other hand, this also makes you more accessible to the tenant. If they notice a fault with the rental property, they may expect you to fix it much sooner. Be clear about how long it will take and that you have other responsibilities that may take priority.

You can set up special “business hours” to protect your personal time. These will be set times of the day when tenants can discuss non-urgent property matters.

Resolving Conflicts With Tenants

Housemates often get into arguments and disagreements. When you’re also in a landlord-renter dynamic, these discussions can get quite intense. They might worry that you’re planning to evict them. However, you should only take this route as a last resort.

Address any developing issues right away. You might be able to fix things with a simple, friendly conversation. If this fails, you should try to find a compromise. For example, if rent is too high for them, consider covering more of the utilities.

When these disagreements threaten the landlord-renter relationship, you could turn to mediation or arbitration. In these settings, a third-party mediator or arbitrator facilitates an open discussion. In the case of arbitration, they can offer a binding judgment.

When Eviction is Necessary?

Even before you take on a tenant, you should carefully consider when you’ll need to evict them. Here are a few situations where eviction is likely unavoidable:

• The tenant has seriously damaged the property
• The tenant’s private space has fallen into disrepair
• The tenant refuses to stop excessive noise at night
• The tenant lied on their original rental application
• The tenant has otherwise breached the rental contract

Even a failure to pay rent might only be a temporary issue. Try to give the tenant extra chances and be understanding if they’re in a difficult situation.

Final Thoughts

It’s never easy to open your doors up to a stranger. However, with a good rental application and tenancy agreement, you shouldn’t face any problems. Make sure you use an online template for each to guarantee they’re legally binding.