two lodgers now asked to leave as refuse to pay rent

bitsandpieces

BitterAndTwisted wrote: »

ETA: Honestly, I really wouldn't bother trying to deduct any rent until they return the keys.

Ditto. Even if you legally could, you were going to change locks anyway - better to end the relationship with the lodgers without trying to charge them further rent.

lindalou1

yeah, think Iwill forward it too them, will look at postal orders.

My brother was going to do lock but now going to get locksmith to do it and get invoice. So door bolted untill tomorrow!

m_curiousity

Just been reading this whole saga and feel quite nervous now, in the middle of buying our first flat and planning to have lodgers....Linda did you have any kind of written agreement with them, e.g. for house rules, how much notice needed on either side if leaving etc?

Just out of interest if you dont mind me asking, how much were you charging them per month? I'm ttrying to decide if we should charge £350 or less per month (and therefoe fall under the rent-a-room scheme) or charge more and complete a VAT return ever year and pay tax on the extra over £4250...although saying that I'd be interested to know if anyone does ever declare it!!

The whole thing sounds really horrible you must be so glad theyre gone!!:beer:

G_M

Bear in mind m_curiosity, that this is the exceptional case. Very unusual. However you are right to plan for worst case scenario. House rules are a good idea, but I'd avoid a notice period.
The advantage of having lodgers over tenants is they have few if any rights. It's your home, so you can evict whenever.

Putting a notice period in the agreement means if things do turn sour, it takes longer to evict them. OK, they might leave at a day's notice, meaning you suddenly have to manage without rent, but that's better than having to give a weeks notice or whatever if they turn really nasty.

Bills is another tricky one. If you include all bills, you might find they have an electric fire on in their room 24/7 and you tricity bills goes mad! Same with the phone. Put something in the rules about its use and how its going to be paid for.
Keep a deposit and wait till all bills are in before returning it.

Having said that, most lodgers are really nice, honest, and can even become friends!

lindalou1

Hi curiousity

I didn't have anything written, have had great lodgers in the past and never thought I needed a contract but lesson now learned.

Had house rules of cleaning rotas, 1 months notice prior to leaving and deposit to be used for security.

Charging £240 and £225 for 2 different rooms.

Would be inclined now to go with advice of Bitter and Twisted and ask for a larger deposit to cover what I have just gone through, but I have honestly had great lodgers before these two so don't let it put you off. Its a great way to pay bills and pay of a bit more of the mortgage.

lindalou1

G_M wrote: »

Bear in mind m_curiosity, that this is the exceptional case. Very unusual. However you are right to plan for worst case scenario. House rules are a good idea, but I'd advoid a notice period.
The advantage of having lodgers of tenants is they have few if any rights. It's your home, so you can evict whenever.

Putting a notice period in the agreement means if things do turn sour, it takes longer to evict them. OK, they might leave at a day's notice, meaning you suddenly have to manage without rent, but that's better than having to give a weeks notice or whatever if they turn really nasty.

True.. if it goes wrong you WILL want them out of YOUR home as soon as possible, especially if there is 2 of them:eek:

bitsandpieces

m_curiousity wrote: »

Just out of interest if you dont mind me asking, how much were you charging them per month? I'm ttrying to decide if we should charge £350 or less per month (and therefoe fall under the rent-a-room scheme) or charge more and complete a VAT return ever year and pay tax on the extra over £4250...although saying that I'd be interested to know if anyone does ever declare it!!

Yes, people do declare it. Aside from anything else, if you don't then you run the risk of an annoyed lodger, neighbour, ex-friend etc. reporting you to HMRC :eek: HMRC can be surprisingly helpful with info on what forms to complete etc. to keep everything above board.

m_curiousity

*confused* so if they leave part way through a month and you dont have anything about the notice period in the agreement, you wouldnt take any rent out of the deposit presumably?

Thanks for all the tips....will be declaring it just wondered how other people deal with it!

Linda, if you're renting rooms for that much all year it must equal over the £4250 threshold, what do you do?

Dr.Shoe_2

Some landlords charge "key money" as a seperate entity to the deposit. This pays for locks to be changed if need be. return the keys and you get your key money back.

Badger_Lady

Aww, Lindalou, sounds like it's been tough but you're doing the right things. As some others have said, as long as you deduct the rent (and perhaps locks - the last time I had mine changed it cost £15), I'd end it there... technically they haven't moved out properly, but the more you push the more aggressive they'll become. Personally, when I've had trouble with my lodgers, I'm much happier cutting a small loss for peace of mind.

m_curiosity, I've been taking in lodgers for years now and every detail is on here: http://forums.moneysavingexpert.com/showthread.html?t=917993. Apart from the odd humorous moment, they've been wonderful and I actually enjoy having them here more than I enjoy their rent!

I do have documents that are issued to each new lodger - a Houseshare Agreement, House Rules, Standing Order form (which is optional but preferred) etc... if you're serious about letting, PM me your email dress and I'll email you a de-sensitised version of these.

As for going over the £4250 threshold, it just means you're not eligible for "Rent a Room" - you instead declare it as a normal income to the tax office (phone your nearest office to get registered and they'll send the forms when needed). I can't remember the exact tax levels because I've never had that much, but it must be easy to find out...