Beware the paying friend
Did you know?
• that a tenancy agreement does not have to be in writing?
• that a long term paying house guest may obtain statutory protection?
• that you could face criminal and civil liabilities if you wrongly evict an occupier of your property?
In the modern housing climate the long term house guest is becoming a more common phenomenon and many people are choosing to extend their hospitality to other friends or family members in return for a small rent.
So how do you know whether your long term house guest has become a resident with statutory rights of occupation?
Occupier’s Rights
The rights of residency occupiers are many and varied. At the most basic level a person who occupies a property as their residence may receive protection under the Protection from Eviction Act 1977 (the ‘1977 Act’). The 1977 Act makes it unlawful to evict a residential occupier without due process of the law.
Failure to comply with the 1977 Act can result in criminal conviction and civil claims for compensation of as much as £20,000. It is, therefore, important to understand the rights of tenants or occupiers and to be aware of the point at which a long term houseguest may seek the protection of the law.
Occupants can broadly be split into 3 categories; tenants, lodgers and licensees.
Tenant
If you ask a guest to pay rent and they occupy a separate part of your property, such as a self contained basement, your guest may occupy under an Assured Shorthold Tenancy (an ‘AST’). This may be true even if there is no written agreement.
A guest who occupies under an AST will receive protection under both Housing Act 1988 (the ‘1988 Act’) and the 1977 Act and can only be required to leave having received two months notice in accordance with Section 21 of the 1988 Act. You will then need a court order to evict them if they do not leave voluntarily.
Lodger
A guest who is charged rent but who shares kitchen and bathroom facilities will probably occupy as a lodger. Although they will receive protection under the 1977 Act they can in most cases, be asked to leave almost immediately without the need for a court order so long as the provision of the 1977 Act are considered.
In some circumstances, however, it may be necessary to serve a notice to quit containing required wording and to obtain a court order requiring them to leave.
Licensee
If a guest lives in your home simply with your permission and does not pay any rent
their rights are those of a pure licensee who, like a lodger, can be asked to leave at any time so long as the provisions of the 1977 Act are considered.
General Rules
As a general rule you can avoid your guest obtaining statutory protection by not asking for rent and by ensuring that they share facilities rather than occupying their own area. Of, course there may be times when you wish to make alternative arrangements and it is at these times, in particular, when you should be aware of the pitfalls and seek advice.
These are not absolute rules and if you are unsure it is always a good idea to take legal advice before asking a residential occupier to move into or to leave your home or other property.
Wednesday, 30 May 2007
