AST or resident landlord?
I live in a detached house with a 1 bedroom annexe attached. I am looking to let it out. I have access to the annexe through an adjoining door which remains locked but only I have a key and access. It is not a separate address and all mail would come to the main house.
My question is: would this fall into the category of a residential landlord lodger agreement or an AST?
Does the deposit need to be lodged with the DPS if it is a lodger agreement?
Is there a way of writing an agreement to qualify it as a lodger agreement?
Anyone got any advice from past experience on this situation.
Thanks
Philip
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Member Since January 2011 - Comments: 12195 - Articles: 1396
5:34 PM, 18th June 2015, About 11 years ago
Hi Philip
If the annexe is self contained and you don’t share any facilities or provide any services then it’s clear to me that it’s a tenancy regardless of what any agreement says.
Vacant annexes are exempt from Council Tax but as soon as they are occupied by a separate household then Council Tax becomes payable so watch out for that one too.
As a matter of interest, how will you deal with utility bills?
.
Member Since September 2013 - Comments: 2
7:43 PM, 18th June 2015, About 11 years ago
The facilities are not shared but I can write the contract to share the lounge but in reality that would not happen. I would include water, council tax and tv licence in the rent but can charge the gas/electricity as its on a separate metered sipply.
Member Since January 2011 - Comments: 12195 - Articles: 1396
11:10 PM, 18th June 2015, About 11 years ago
Reply to the comment left by “philip nash” at “18/06/2015 – 19:43“:
Sounds like a contrivance to me, very risky but your choice.
If you need to evict though I suspect the Courts would side with the tenant and if you are doing this to evade tax by abusing the Rent A Room scheme then you are risking a prison sentence too.
.
Member Since July 2013 - Comments: 1434
10:07 AM, 19th June 2015, About 11 years ago
I believe that a separate TV licence would be required regardless of lodger or tenant status.
Member Since November 2013 - Comments: 1130 - Articles: 2
4:31 PM, 19th June 2015, About 11 years ago
Hi Philip
If the occupier of your annexe would be obliged to access their dwelling through yours, they would be a kind of hybrid between being a licensee (which is what lodgers who rent spare rooms and share facilities with their landlord normally are) and being a full tenant. Their legal status would be that of excluded tenant. As the name implies, an excluded tenant doesn’t have the protection from eviction that a full tenant does, but unlike with a lodger who is a licensee, you would have to get a court order for possession of your property if they refused to move out. However, it’s my understanding that this is much easier to obtain than a court order for possession under an AST (i.e. the most common type of tenancy). The notice required is also shorter – one month as opposed to two.
However, you can’t use the rent a room tax exemption, as you must share facilities such as kitchen and bathroom to qualify.
Michael Barnes is also correct in saying they would need their own TV licence – this applies even with lodgers who rent spare rooms.
Finally, I concur with what everyone else has said above – it’s the SITUATION that determines what sort of letting arrangement you have, and not simply the form of contract you use.