Live-in landlords: The pros and cons of living with a lodger

By FredrickHobbs

An owner-occupier, also referred to as a resident landlord, is defined as any landlord who rents out part of their own property while living there themselves.

Though living with guests may be financially rewarding, there may also be potential drawbacks that may cause issues. This blog provides an in-depth exploration of both advantages and drawbacks associated with sharing a home in lodge.


Rental income

Rental income is the main driver behind home lease agreements between homeowners and lodgers. Leasing out part of their house to lodgers helps supplement financial needs if the landlord works full time or wants to increase income streams.

Living with lodgers means they are close by should rent payments become due; should someone owe you rent they cannot leave without paying!

Company for the landlord

Some individuals rent out part of their home to share the space with someone, usually elderly people who feel lonely after losing a spouse and require companionship. Hiring reliable tenants could provide greater peace of mind.

Dealing with disputes

If your house is divided into multiple apartments or large enough for multiple lodgers to occupy, renting out some or all of it could help keep it in great shape. By having someone living there instead of leaving rooms uninhabited and neglected, repairs will likely be noticed immediately by lodgers residing there.

Better mortgage rates

If a problem arises between yourself and a lodger, living together provides the easiest means of handling it quickly. Communication will likely be easier if the two of you interact regularly.

With lodgers at home, it allows you to observe their behavior and swiftly put an end to anything they shouldn’t be doing.

As an owner-occupied landlord, mortgage rates typically offer lower rates compared to non-owner occupied mortgage rates; a separate non-owner occupied loan may also be necessary if renting out additional homes in addition to your residence.


Lodger fails to pay rent

Unfortunately, my lodger hasn’t been able to pay rent.

If the lodger cannot pay rent, this could create an uncomfortable living situation when discussing unpaid dues with them.

Lodger Causes Trouble

A lodger could be loud and disruptive. Additionally, they could get involved with unsavory activity that impacts on your quality of life. Sometimes people don’t see eye to eye on things; what may begin as minor irritation quickly escalates into something much worse.

Lodger ruins the property

Although your lodger may appear nice at first, they could quickly turn out to be dirty, unhygienic and even damaging your home. Not only will they disregard their own space; they may leave shared areas such as bathrooms and hallways in an unacceptable condition.

The lodger may hassle you

Those lodgers experiencing any problems with their property or lodger may come knocking at your door to lodge their complaints, as well as repeatedly calling you. Furthermore, if they’ve become locked out and need entry back into their own home they’re likely knocking at the door seeking access.

Difficulty evicting the lodger

Getting rid of lodgers may not be as straightforward as it might seem, however. Since lodgers usually lack legally-binding tenancy agreements in place, landlords must issue them a “notice to leave,” giving them enough time to vacate the property. If a lodger refuses or doesn’t leave when asked, legal action against them could ensue; you could alter locks if possible or alter them even further as needed.

No doubt there are advantages and drawbacks associated with living with lodgers; landlords must take all aspects of living in a rented property into consideration prior to becoming landlords who live there themselves.