Money hacks How to earn extra cash by letting a room

Technically, a lodger is different to a tenant. A lodger is someone who rents a room in someone else's home, usually sharing living spaces such as the kitchen and bathroom.

- Emma Lunn

What is a lodger? By contrast, tenants generally rent the whole property.

Unlike a tenant, a lodger does not have exclusive rights to any part of the property - you, as the landlord, can access their room (however, you should respect their privacy).

Matt Hutchinson, a director at the flatshare website SpareRoom, says tenants generally have more rights than lodgers because the law recognises that homeowners and landlords are distinct roles, and sharing a home "requires a different set of rules".

He adds: "Homeowners who rent out (always furnished) rooms to lodgers do so under a licence rather than a tenancy agreement, which sets out the conditions of their stay in your property.

"For example, you're only required to serve 'reasonable' notice if you want your lodger to move out. That's usually the length of the rental payment period, so typically one month, but it can be shorter. There's also no minimum term required by either party."

Live-in landlords can ask lodgers for a deposit. But unlike a residential landlord letting an entire property on an assured shorthold tenancy (AST), there is no obligation to protect the deposit using a deposit protection scheme.

Who can take one in? Most homeowners can take in a lodger, but if you have a mortgage, it is best to speak to your lender first.

Mark Harris, the chief executive of the mortgage broker SPF Private Clients, says: "Even those lenders who don't have an issue with lodgers may have certain caveats, such as a cap on the number of lodgers. Principality [building society] will only allow one, while Nationwide and Santander will allow up to two lodgers. Some lenders will forbid lodgers altogether."