Rooms in Shared Houses

Many landlords prefer to rent individual rooms as this increases the rental value [Yield] of their property. When renting rooms it is important to remember you cannot rent the property exclusively to multiple individuals therefore the agreement is either specific to the room or as a collective [shared house]. The differences between these rental types is detailed below

If you are a resident landlord and wishing to take lodgers then click here to see Lodger Rent a room

Individual Room Lets

Shared House Agreements.
A non resident Landlord rents individual rooms. Each person must be issued a tenancy agreement and the agreement should specify the dwelling such as Room 1
 
The Tenancy agreement required is includes provision for agent admin fees
 
 Advantage of renting rooms
 
Renting individual rooms will usually increase the rental value of the property.
Where one tenant not paying you can evict the individual rather than all persons in the house
No EPC required
The tenants cannot exclude you from the premises as they only have 'non exclusive use of common areas.
You can have a guarantor per a room
 
Disadvantages
 
The non smoking laws apply in common areas
Inventory/ Deposits - Who is responsible for damage in common areas. Kitchen, Bathroom etc.
 

A collective of individuals rent the property in entirety. As such they are jointly responsible for paying the rent. They have exclusive use of the whole property.

 
The Tenancy agreement required is includes provision for agent admin fees
 
Advantages house share
 
Tenant responsible for council tax and utilities.
Peer pressure - if one tenant does not pay. Then the others are liable for their portion of the rent.
One Eviction process for all named tenants.
If one of the sharers leaves the others are likely to find a replacement [you approve the new tenant]. In theory the house harmony should be better.
The tenants as a collective are responsible for damage. They can sort out blame between themselves
 .
Disadvantages

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