We would highly recommend putting a basic Contract in place between both parties when it comes to sharing space. Many sample Contracts can be found on the internet which can be adapted to suit most needs. We would recommend you state at least the following:

A notice period of no more than 7 days.

That payment is always made in advance on a weekly basis.

That the sharer must cover the cost of insurance for the period they stay.

That they are willing to allow you to keep a copy of their passport and photo ID on file for up to 1 month after the end of the Contract.

Provide two references.

The Contract should be signed by both parties, and a copy retained by both parties.

When it comes to taking a payment from someone for an agreed space share, we would recommend the payment is made in advance and on weekly terms. This should be written into your Contract so that both parties are in agreement.

We would recommend taking a photocopy of photo ID and a current utility bill to verify someone s identity and address. This should be stated in your Contract. You should also check references. Talking to someone who has worked with the person you are going to share space with, or a landlord, will put your mind at rest.
Always check with your Insurance Company to check that you will be covered while someone is sharing your space. If you are not already covered, it should be a simple procedure to add this change to your policy. The cost of this should be minimal but you can take this into consideration when deciding what you will charge the sharer. If you prefer, you can request that the sharer takes out their own policy to cover the period they are sharing your premises.We would not recommend sharing, without first checking with your insurance company, that you will be covered.
Your Health & Safety procedures should be followed on your premises, and a copy of your Health & Safety Policy & Procedures, given to the sharer. If you do not have a Health & Safety Policy, you can get all the information you will need from www.hse.gov.uk .
Sometimes in life, it just doesn’t work out, for whatever reason. Try not to let this put you off, this is the reason why we recommend short term sharing. Speak to the other party immediately, and explain that it’s not working out for you and that wish end the Contract at the end of the notice period. Move on, and try again.