From making new friends to having the potential to earn £7,500 tax-free, there are plenty of benefits to reap when bringing someone new into your home. If you’re thinking about taking on a lodger, it helps to get your head around the lingo before getting stuck in. Confused as to what a live-in landlord is and if you count as one? Keep reading our handy guide to learn more about what being a live-in landlord means for you.
What is a live-in landlord?
Just like it says on the tin, live in landlords quite literally live with those renting a room in their property. The rented property is the homeowner’s main or only place of residence and they must be living there on a regular basis. Live-in landlords have lodgers rather than tenants and typically share communal areas with them.
It’s important to note that those who rent out purpose built flats only count as live-in landlords if they live in the same flat. Those who live in another flat count as live-out landlords according to the Gov UK website.
What is a live-out landlord?
You may have already guessed, but a live-out landlord is one that lives separately from their renter, who is known as a tenant in this case. If you’re renting out a holiday home or your own property while you’re away, you’ll count as a live-out landlord as it’s no longer your main place of residency.
Why does it matter?
You may be thinking: what difference does it make? Quite a lot, actually. Those with live-in landlords have totally different rights to those who with a live out landlord:
- Lodgers have licences or agreements, whereas tenants would have tenancy agreements.
- You can only evict tenants after the standard notice period shown in their contract. Lodgers can be served a reasonable notice for eviction, which is typically 28 days.
- A live-in landlord can access the lodger’s room whenever they want and locks aren’t allowed on bedroom doors. A live-out landlord must give at least 24 hours notice in writing before they can access the property.
- A tenant’s deposit legally must be placed in a Deposit Protection Scheme. Although it’s a good idea that a live-in landlord does this for security reasons, it isn’t a legal requirement.
- Both types of landlord will need to keep up with safety and security checks, including yearly gas checks.
It’s important to know what type of landlord you fall under in order to make sure you’re keeping on top of your duties. Live-in landlords can make £7,500 totally tax-free from renting out their spare room thanks to the Rent a Room scheme. If that doesn’t tempt you into renting out your spare room, we aren’t sure what will.
Whether you’re a live-in landlord to be or a potential lodger, badi can make the renting process a whole lot smoother. Enjoy the plethora of fun and functional features on offer while you find the right person to share your space with.