Lease and licence should not be confused as the same. What makes a lease different from a licence is that exclusive possession is its necessary requirement. This follows that if an occupant does not have the right to “exclusive” occupation, then he cannot be a tenant but merely a licensee.

One typical example of a licensee is a lodger. A lodger is simply a paying guest in the house of another person. His rights extend only to the room he pays to occupy, although he can have an access to all the public rooms in the guest house provided for guests.