Landlord demands cash in hand or cheques - is he fiddling the books?

artsy-not-fartsy

Hi,

I'm in a bit of an odd situation coming from student accommodation where the landlords there where more than "questionable". Now I'm back in the real world and I'm dubious of this guy because even though he seemed genuine...

Before I moved in I specified that I wanted to pay rent by Direct Debit but he declined and said he preferred cash or cheque. Yet, because I was in a tight spot quickly moving out from a house at the end of my rental period with my x girlfriend I jumped at it. Mostly because it's a nice area and the rent amount is pretty fair. I gave him my deposit and months rent and moved in.

Six months later I've learnt a bit more about his situation, and his 'landlord' techniques: Basically it's a 3 bed town house, but he's also renting out the 'study' as a room to someone that just fits a bed and nothing more, and no-one here pays anything but cash normally for their rent. So he's getting rent on 4 rooms, and obviously not paying any tax on it. He currently lives in London with his girlfriend but works near here so commutes back and forth and everyday uses the kitchen here for lunch etc.

We just had our boiler fixed today, which is what promoted me to ask you guys for advice, since we had no heating for over 4 nights this week (4 that I know of after I returned from visiting family for xmas)

Don't get me wrong, the guy seems nice enough, but he's fiddling VAT and we don't even have locks on our room doors. Please can you offer some advice where I don't have to move out but at least have some rights where I am living or something?

Any advice is appreciated!

Many thanks

BitterAndTwisted

If the landlord is prepared to accept cheques in payment of rent it does not necessarily mean that he's fiddling his income tax or VAT. If he is, what do you care? I don't really understand why his tax affairs are your business.

The boiler broke and and now it's fixed so you're in a much better position than many, many other tenants.

If you want a lock on your door why don't you ask the landlord to fit one?

G_M

Not sure exactly what you are worried about: the tax? the boiler? the locks? something else?

Pay him by cheque (there's a paper trail) and get a receipt. He may/may not be paying tax etc - not your job to enforce tax laws!

4 days to fix a boiler? Pretty quick this time of year - plumbers are hard to come by. Lucky they didn't need a part delivered!

Have you asked if you can put a lock on your door? Be insistant and explain your privacy and peace of mind is important.

Have you got a receipt for the deposit? Is it registered in a recognised scheme? Which one? (see here)

Have you got a tenancy agreement? If he is 'living' there (does he have a bedroom himself?), you are probobly a lodger rather than a tenant which means you have fewer (VERY few) rights. What's the arrangement? You have your own room? Share living room/kitchen etc with him/others? Who pays the council tax? Who pays the utility bills?

eco-friendly_2

Please can you offer some advice where I don't have to move out but at least have some rights where I am living or something?

How are your rights being affected with your LL diddlin the taxman?

GET A LIFE!

artsy-not-fartsy

BitterAndTwisted wrote: »

If the landlord is prepared to accept cheques in payment of rent it does not necessarily mean that he's fiddling his income tax or VAT. If he is, what do you care? I don't really understand why his tax affairs are your business.

He doesn't like receiving cheques, always insists on cash in hand except for this rare occasion. He specifically requested against direct debits. When I questioned "why?" he said because of "private reasons". You don't think that's because he's fiddling the system in a non legal way? Not that he's either making extra money from the government, or from me, which are both wrong so yes, it is my business.

BitterAndTwisted wrote: »

The boiler broke and and now it's fixed so you're in a much better position than many, many other tenants.

Fair enough, could have been worse when it's only -3 outside now . Let's also take into account it's the third time the boiler broke for around the same amount of time this winter.

BitterAndTwisted wrote: »

If you want a lock on your door why don't you ask the landlord to fit one?

When I moved in he specified it was a 'trusting house' and the people here were safe because he'd interviewed them personally. Personally I don't like the idea of anyone being able walk into my bedroom when at work from 9-5 or asleep. I will be asking for a lock or maybe just installing one of my own accord.

Sequeena

Hi, sorry don't think I'll be of much help but I've been renting houses for over a year now and didn't even realise people paid their landlord via Direct Debit. I pay my landlord in cash every month (£515). He's a very nice man and has been very kind to me and my OH. The house we're in now is absolutely gorgeous and not what I'm used to at all. It's a 3 bedroom semi with a garden that goes half way up the mountain. Everything is new, including the boiler and the only problem I have is that the bathroom is downstairs but I am more than willing to live with that to have such a beautiful home!

In contrast the house I was living in before was rented to us by my OHs 'friend'. His grandmother lived there before us and half her stuff was still there. We couldn't use half of the cupboards because of it. The boiler was the old style one, it only had 2 bedrooms, didn't have a bath (used to a walk in shower though as my mum is disabled and that is what she has), the toilet leaked through the kitchen ceiling and in general the house was very run down and no matter how much I srubbed I could not get it clean. It was a 2 bedroom end terrace with a very small back garden. Our landlord was a knob, he promised us that he would update the house (kitchen, bathroom etc) but instead he went and bought himself a porsche. He was charging us £500 a month for this house and once even accused me of stealing from myself (my OH counted the money wrong)!

I honestly think you've got a good deal!

artsy-not-fartsy

G_M wrote: »

Have you got a receipt for the deposit? Is it registered in a recognised scheme? Which one?

Have you got a tenancy agreement? If he is 'living' there (does he have a bedroom himself?), you are probobly a lodger rather than a tenant which means you have fewer (VERY few) rights. What's the arrangement? You have your own room? Share living room/kitchen etc with him/others? Who pays the council tax? Who pays the utility bills?

I'm afraid there is no formal agreement or signed contract (which is my own fault moving in on rushed terms - but none of the other tenants have one either) He reluctantly gives receipts and I have only the one for my deposit. I was verbally advised there is a one month notice from both parties to moving out. Yes we all have our own rooms. Shared living room / kitchen, but it's not exactly a social house so they're always empty.

All bills etc are accounted for, the guy lives in London with his girlfriend but has slept in the lounge occasionally.

Thanks

patanne

he's probably running from the CSA rather than the tax man which can be much more scary. As previously said his tax problems are not yours. So try not to worry about that side of things. If the situation worries you then you have time to look for alternative accommodation, and could ask for more personal security.

Running_Horse

artsy-not-fartsy wrote: »

obviously not paying any tax on it.

Evidence please? Saying something is obvious doesn't prove a thing.

artsy-not-fartsy wrote: »

We just had our boiler fixed today, which is what promoted me to ask you guys for advice, since we had no heating for over 4 nights this week (4 that I know of after I returned from visiting family for xmas)

So your landlord fixed the boiler in four days? Not too bad in the rental sector.

The trouble is students have grown up in a generation where everything is guaranteed and provided for them. You should try living in some of the bedsit hovels I endured after leaving home. Seriously, stop moaning, or move.

pie81

Sounds more like you are a lodger rather than a tenant. If you are very concerned about having "rights" then if I were you I would leave your current place and find somewhere with a formal tenancy. Expect it to be more expensive though, and you will be tied in for 6 months plus.

Jowo_2

Does the property have a gas safety certificate?

If its not their primary address, then the landlord may inadvertently give their residents stronger rights (tenancy rather than exclusive occupation). A landlord generally either lives out (which gives the tenants exclusive occupation) or lives in it as their primary residence (which gives the lodgers non-exclusive occupation). He sounds half and half but it should really be one of the other.

Tenants don't generally pay their rent by direct debit but by standing order which the tenant directly sets up with their bank and controls (organisations that use DD set it up with the person's bank)..

Your landlord could be evading tax and there's a tax fraudline if you believe this is the case but the authorities only look into about 2% of reported cases as there's a high degree of malicious reports and very little good intelligence and they are overwhelmed.

VAT is not applicable - businesses pay it if their turnover exceeds 60k per annum. A landlord pays tax on property on a personal tax basis.

Boilers break - my previous maintenance problem with the central heating system, and the third this year, took a week to fix. The majority of plumbers ignored my calls as its their peak period. Being a tenant doesn't give you the entitlement to enjoy repairs any swifter than a typical householder - there is an obligation for a landlord to keep the central heating/water in good repair and to prioritise them but if you can't get hold of a plumber or parts, there's little they can do.

There's no legal obligation for a landlord to fit locks on internal doors (which should have a thumb latch inside for fire safety purposes) and its not always very popular with landlords.

Sounds to me like you chose your accommodation in haste which is your own fault and responsibility to rectify. Much of what you've reported is fairly trivial but if you don't enjoy living there, you should hand in your notice and move out.