Renting to individuals in a 3 bed house

[p4dfp]

hi there, i wish to rent my house to 3 individuals each having one room. what type of agreement is required with the individuals? i have already spoken with my mortgage company, arranged for adequate insurance and have had suitable fire safety installed. what do i do now please?

[Surrey]

hi there, i wish to rent my house to 3 individuals each having one room. what type of agreement is required with the individuals? i have already spoken with my mortgage company, arranged for adequate insurance and have had suitable fire safety installed. what do i do now please?

Just a quick reply, you'll get much fuller from those 'in the know'.

It depends what you want to do here. Do you want to let to them as a group, possibly with a managing agent? If so, an Assured Shorthold Tenancy (AST) will probably be the one to go for, with them having joint and several liability. You could also do an AST without an agent and deal direct with your tenants.

Another option is to just let each room, in which case you don't do an AST but licence each tenant. Potentially a bit more money but a lot more hassle for you as you then have three people to deal with rather than one group.

For your own safety you will need to have an independant inventory drawn up. If you let as an AST through an agent they should be able arrange that for you. (Just paid £110 for the drawing up, with £110 checking in fee and £110 checking out fee). Also gas safety check and certificate needed whichever option you choose.