Definitions of licence
a right to use property for a purpose without transferring ownership or possession. This right can be taken away at the will of the one granting the right.
Your lodger (=someone who pays for a room and sometimes for meals in someone else's house) has a licence to occupy your premises and not a full tenancy.
official permission to do something or to use something, often in the form of a document or other formal piece of writing
I strongly disagree with the proposed increase in television licence fees.