If you are considering availing of the Rent-a-Room scheme, you should be aware that you will be getting into a grey legal area.
The Landlord and Tenant Act will not automatically apply in this kind of sharing arrangement as it is based on exclusive access to a premises.
If the space and facilities are shared, it's hard to argue that one person is a tenant of the other.
Generally this kind of living arrangement operates on the basis of the establishment of a licence to reside in the property.
That licence may come into existence by a verbal or written agreement and if the home-owner want the person out they must give "reasonable notice".
What constitutes reasonable notice is not set down for a licencee but a tenant would be entitled to four weeks written notice to quit. Rent book regulations do not apply either with a licence.
As the whole area is virtually unregulated, it would be advisable for both parties to enter into a contract agreement before the new arrival takes up residence.
This will provide some security to the home owner and the person or persons renting the room.
According to Ms Louise Mullen of Threshold, such a contract should include:
the duration of the agreement;
the rent and payment dates;
the amount of the deposit and the terms for its repayment;
length of the notice to quit;
conditions in relation to the use of facilities and payment of bills.
Such an agreement would constitute a licence to occupy and is legally binding. The absence of such an agreement may make it difficult to settle any disputes that might arise.
It is normal for landlords to ask for a deposit of one month's rent.
Those letting out a room for the first time can consult the "accommodation sharing" advertisements in a newspaper or ask an estate agent to indicate the going rate in their area.
It's also reasonable to ask someone to produce a reference from their previous landlord or their employer.
An increasing number are sharing accommodation out of economic necessity and this kind of arrangement is workable and can be a happy one.
However, as it's difficult to foresee personality clashes or anti-social behaviour, the best insurance against disaster is a fair and clear agreement.
