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    • username678
    • By username678 7th Jul 17, 2:06 PM
    • 11Posts
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    username678
    Cash in hand for rented room
    • #1
    • 7th Jul 17, 2:06 PM
    Cash in hand for rented room 7th Jul 17 at 2:06 PM
    Hi everyone, hope someone here can help!

    I have always rented through letting agencies/estate agents but due to a change in circumstances, I am going to rent a room through spare room.

    The landlord seems lovely and the room is fine, but they would like the deposit and all monthly rent money in cash. Is this normal or dodgy? I have always done bank transfers before and feel a bit unsure about walking around with that much cash on me!

    Thanks in advance!
    Last edited by username678; 07-07-2017 at 2:08 PM.
Page 1
    • Guest101
    • By Guest101 7th Jul 17, 2:13 PM
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    Guest101
    • #2
    • 7th Jul 17, 2:13 PM
    • #2
    • 7th Jul 17, 2:13 PM
    Cash is fine just ask for receipt.


    Since it's a room, presumably you're paying a relatively small amount anyway
    • username678
    • By username678 7th Jul 17, 2:33 PM
    • 11 Posts
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    username678
    • #3
    • 7th Jul 17, 2:33 PM
    • #3
    • 7th Jul 17, 2:33 PM
    Since it's a room, presumably you're paying a relatively small amount anyway
    Originally posted by Guest101
    No such luck, especially in this part of the country. It's a room, plus bills and use of kitchen and bathroom. Not a small amount of money but the cheapest in the area.
    • NinaSwiss
    • By NinaSwiss 7th Jul 17, 2:35 PM
    • 200 Posts
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    NinaSwiss
    • #4
    • 7th Jul 17, 2:35 PM
    • #4
    • 7th Jul 17, 2:35 PM
    Will the landlord also live there?
    If so make sure you have some form of agreement between yourself and the landlord. Helps to manage expectations on either side eg on notice period.

    If not then you will probably need an AST contract.
    Working towards:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    *Mortgage
    Overpayment (50% LTV of original purchase price by Jan 2020) *Clear student Loan(by Jan 2020)*Saving for a Car purchase(2017)!
    *2017 DIY projects *Making the most of life!!!
    • NinaSwiss
    • By NinaSwiss 7th Jul 17, 2:41 PM
    • 200 Posts
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    NinaSwiss
    • #5
    • 7th Jul 17, 2:41 PM
    • #5
    • 7th Jul 17, 2:41 PM
    I should have said ... make sure you have some form of written agreement between yourself and the landlord.

    Landlord accepting payment in cash only does not necessarily mean he/she is dodgy. but like Guest101 suggests, you can ask for receipt for each payment or even a confirmation text message each time you make a payment.
    Working towards:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    *Mortgage
    Overpayment (50% LTV of original purchase price by Jan 2020) *Clear student Loan(by Jan 2020)*Saving for a Car purchase(2017)!
    *2017 DIY projects *Making the most of life!!!
    • HouseBuyer77
    • By HouseBuyer77 7th Jul 17, 2:45 PM
    • 873 Posts
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    HouseBuyer77
    • #6
    • 7th Jul 17, 2:45 PM
    • #6
    • 7th Jul 17, 2:45 PM
    It's certainly less dodgy for a lodging arrangement. You have little legal protection anyway (no protected deposit, can be quickly and easily evicted) and the landlord may not have to pay tax on the income (google rent a room scheme if you want the details). So basically there's little for the landlord to avoid that might make them want cash so there's no paper trail.
    • username678
    • By username678 7th Jul 17, 2:50 PM
    • 11 Posts
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    username678
    • #7
    • 7th Jul 17, 2:50 PM
    • #7
    • 7th Jul 17, 2:50 PM
    The landlord will be living there as is one lodger already,

    Would the written agreement need to be through solicitor or would something simple that we both sign be okay?
    • 00ec25
    • By 00ec25 7th Jul 17, 2:50 PM
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    00ec25
    • #8
    • 7th Jul 17, 2:50 PM
    • #8
    • 7th Jul 17, 2:50 PM
    as there are you plus at least one other lodger, payment cash in hand is very likely done for tax evasion purposes

    until this year if a LL received more than £354 per month in total from lodger(s), including any share of bills, then the LL would have to pay tax on that income. Perhaps your LL is used to cash in hand for that reason.

    However, from April 2017, the tax free total increased to £625 pcm, but as there are (at least) 2 lodgers, and you say it's a "high rent", it remains possible that the total from all is above that higher limit anyway, so the LL needs to carry on with cash in hand to aid his tax evasion

    if he is evading tax, it has no effect on you living there unless you end up disputing whether you had paid him or not in any given week because obviously there will be no paper trail to show you have.

    Of course morally you may want to report him to HMRC for tax evasion nonetheless?
    Last edited by 00ec25; 07-07-2017 at 2:59 PM.
    • NinaSwiss
    • By NinaSwiss 7th Jul 17, 2:56 PM
    • 200 Posts
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    NinaSwiss
    • #9
    • 7th Jul 17, 2:56 PM
    • #9
    • 7th Jul 17, 2:56 PM
    OP... If you are not comfortable with making payments via cash ask the Landlord if this is possible to make them via bank transfer.

    If that isn't an option, you can always find somewhere else where the landlord will agree to bank transfers. If you are in London there are plenty rooms available for let to choose from.
    Working towards:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    *Mortgage
    Overpayment (50% LTV of original purchase price by Jan 2020) *Clear student Loan(by Jan 2020)*Saving for a Car purchase(2017)!
    *2017 DIY projects *Making the most of life!!!
    • username678
    • By username678 7th Jul 17, 3:04 PM
    • 11 Posts
    • 7 Thanks
    username678
    I did say bank transfer but she said cash.

    I am in Surrey and need to live in a specific area and there are slim pickings of rooms at the moment and I need to find one I can afford asap.
    • Guest101
    • By Guest101 7th Jul 17, 3:15 PM
    • 15,143 Posts
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    Guest101
    I did say bank transfer but she said cash.

    I am in Surrey and need to live in a specific area and there are slim pickings of rooms at the moment and I need to find one I can afford asap.
    Originally posted by username678


    Just out of curiosity how much are you paying?
    • username678
    • By username678 7th Jul 17, 3:17 PM
    • 11 Posts
    • 7 Thanks
    username678
    Just out of curiosity how much are you paying?
    Originally posted by Guest101
    £550 per month. Most in area are charging £600-800 per month. Joys of living in an expensive area.
    • aneary
    • By aneary 7th Jul 17, 3:17 PM
    • 495 Posts
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    aneary
    Just out of curiosity how much are you paying?
    Originally posted by Guest101
    Depending where it is in Surrey I'd say between £400-£600 inc bills.
    • aneary
    • By aneary 7th Jul 17, 3:18 PM
    • 495 Posts
    • 352 Thanks
    aneary
    £550 per month. Most in area are charging £600-800 per month. Joys of living in an expensive area.
    Originally posted by username678
    Where in Surrey are you I paid that in London, and I come from Surrey so I know it well.
    • Guest101
    • By Guest101 7th Jul 17, 3:20 PM
    • 15,143 Posts
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    Guest101
    £550 per month. Most in area are charging £600-800 per month. Joys of living in an expensive area.
    Originally posted by username678
    For a room in a shared house? That's insane. How much is a studio flat to rent? (I appreciate its totally different area, but a 3 bed house is £595 in my area!) - presumably this is for work, but does the salary justify that?


    - I appreciate none of that actually matters, I'm just surprised. Cash is still fine, just make sure you get receipt each time.
    • NinaSwiss
    • By NinaSwiss 7th Jul 17, 3:29 PM
    • 200 Posts
    • 105 Thanks
    NinaSwiss
    For a room in a shared house? That's insane. How much is a studio flat to rent? (I appreciate its totally different area, but a 3 bed house is £595 in my area!) - presumably this is for work, but does the salary justify that?


    - I appreciate none of that actually matters, I'm just surprised. Cash is still fine, just make sure you get receipt each time.
    Originally posted by Guest101
    Thats how it goes here in London I'm afraid.
    I'm on the outskirts(Zone 6, kent side) and room rentals are in the 450-600 range.
    I have friends that live more central paying around 850 -1000(Angel,Edgeware road) a month each in a houseshare.
    When I rented a whole apartment briefly in Bromley South (Zone 5) 2 years ago I paid £1100 PCM for a 2-bed flat.
    Working towards:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    *Mortgage
    Overpayment (50% LTV of original purchase price by Jan 2020) *Clear student Loan(by Jan 2020)*Saving for a Car purchase(2017)!
    *2017 DIY projects *Making the most of life!!!
    • username678
    • By username678 7th Jul 17, 3:31 PM
    • 11 Posts
    • 7 Thanks
    username678
    For a room in a shared house? That's insane. How much is a studio flat to rent? (I appreciate its totally different area, but a 3 bed house is £595 in my area!) - presumably this is for work, but does the salary justify that?


    - I appreciate none of that actually matters, I'm just surprised. Cash is still fine, just make sure you get receipt each time.
    Originally posted by Guest101
    Unfurnished studio flats without bills are £700-900.

    I am trying to put away as much money as possible so going for something like that and having to buy all of my furniture plus deposits and fees really wouldn't make it worth it.

    Yes I need to be in the area for work as I love my job and moving further away wouldn't be any cheaper!
    • Guest101
    • By Guest101 7th Jul 17, 3:47 PM
    • 15,143 Posts
    • 14,757 Thanks
    Guest101
    Thats how it goes here in London I'm afraid.
    I'm on the outskirts(Zone 6, kent side) and room rentals are in the 450-600 range.
    I have friends that live more central paying around 850 -1000(Angel,Edgeware road) a month each in a houseshare.
    When I rented a whole apartment briefly in Bromley South (Zone 5) 2 years ago I paid £1100 PCM for a 2-bed flat.
    Originally posted by NinaSwiss


    No I know, I lived in London for 13 years. But this is Surrey,
    • DumbMuscle
    • By DumbMuscle 7th Jul 17, 3:50 PM
    • 196 Posts
    • 290 Thanks
    DumbMuscle
    Unfurnished studio flats without bills are £700-900.

    I am trying to put away as much money as possible so going for something like that and having to buy all of my furniture plus deposits and fees really wouldn't make it worth it.

    Yes I need to be in the area for work as I love my job and moving further away wouldn't be any cheaper!
    Originally posted by username678
    As someone else in a high rent area (Oxford), I know that feeling! (fun anecdote: My ex was a mortgage advisor for a high street bank. She was sent for some training, which was done by region (in this case, the Midlands). The training was absolutely useless, as their answer for anything that was remotely close to the prices in Oxford was "refer it to Premier, you don't need to deal with that high value stuff")
    • 00ec25
    • By 00ec25 7th Jul 17, 4:04 PM
    • 4,793 Posts
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    00ec25
    £550 per month. Most in area are charging £600-800 per month. Joys of living in an expensive area.
    Originally posted by username678
    with that sort of sum I guarantee they insist on cash purely to evade tax

    https://www.gov.uk/government/organisations/hm-revenue-customs/contact/reporting-tax-evasion
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