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In this video tutorial on tenant law basics, Chester Jefferson explains the concept of lodgers and lodger agreements in England and Wales. He clarifies that a lodger arrangement typically involves a residential license rather than a traditional tenancy. While it is possible to have a tenancy in a lodger situation, it is uncommon. Generally, a lodger rents a spare room in the landlord's home and shares common areas, like the sitting room, bathroom, and kitchen, with the landlord's family. The landlord provides basic services, such as changing sheets and offering clean towels, resulting in the lodger being classified under a residential license.