Tenant with no contract.

Gazz10

Hi,
I am a new landlord currently going through a steep learning curve so would be very grateful for any advice on the following matter.

A student took a room in my HMO in October but has frequently made excuses every time I have asked for the Tenancy Agreement to be signed.
He gave me a deposit and has paid rent with no problem but has suddenly moved out in the middle of the month. He now states that he purposely did not sign the contract so that he would not have to give 4 weeks notice. He also wants his deposit back.

Should I keep the deposit (4 weeks rent) or do I lawfully have to give it back?

Any help appreciated.

Gareth.

real1314

Gazz10 wrote:

Hi,
I am a new landlord currently going through a steep learning curve so would be very grateful for any advice on the following matter.

A student took a room in my HMO in October but has frequently made excuses every time I have asked for the Tenancy Agreement to be signed.
He gave me a deposit and has paid rent with no problem but has suddenly moved out in the middle of the month. He now states that he purposely did not sign the contract so that he would not have to give 4 weeks notice. He also wants his deposit back.

Should I keep the deposit (4 weeks rent) or do I lawfully have to give it back?

Any help appreciated.

Gareth.

Did you agree verbally that 4 weeks notice was required?
Did you agree verbally that the deposit could be used to cover unpaid rent?

if both these are true you can keep some (or possibly all) of the rent, but you need to re-advertise the room to mitigate your losses. You can keep enough of the rent to cover the ad and the period that it takes to re-let.

He could sue you for the deposit (small claims court) and I suppose he might have a chance of winning, but I suspect most cases would come to the conclusion that a 4 week notice period was part of the agreement, even if verbal. An "I'm leaving now" notice period is hardly likely.

all IMHO of course.

BUT...why did you let him occupy / have keys without an agreement?

Perhaps you should have learned some of the rules / requirements etc before starting? The learning curve is always steeper if you've jumped in and made mistakes from the off.

Gazz10

Thanks for the reply.
Yes, it's definitely a steep learning curve. I let him occupy without an agreement because it was early October and most of the students in the area had found accomodation, so I was worried that I would have an empty home. The students that came after him signed a contract no problem although I am also learning that having a contract and enforcing it are two different things.

Gareth

barnaby-bear

Gazz10 wrote:

Hi,
I am a new landlord currently going through a steep learning curve so would be very grateful for any advice on the following matter.

A student took a room in my HMO in October but has frequently made excuses every time I have asked for the Tenancy Agreement to be signed.
He gave me a deposit and has paid rent with no problem but has suddenly moved out in the middle of the month. He now states that he purposely did not sign the contract so that he would not have to give 4 weeks notice. He also wants his deposit back.

Should I keep the deposit (4 weeks rent) or do I lawfully have to give it back?

Any help appreciated.

Gareth.

If a LL doesn't give a tenant a contract there is an IMPLIED default AST assumed protecting tenant - I'd assume that this cuts both ways, try googling for advice from CAB etc on implied contracts to see what an implied contract means - you couldn't have just evicted him so I imagine there is some implied contract on his part too how extensive it is I have no idea.

HugoSP

My view would be to tell him that he entered into a contract even though none was signed.

Thus he loses the lot.

These tenants have very few rights. His solicitor/cab will advise him that he doesn't have a prayer.

I speak with several years as a landord letting rooms in my own house then as a landlord letting out furnished accomodation.

linlin_3

I expect over time you'll learn to play by landlord rules! Check out:
https://www.landlordzone.co.uk
and you'll find landlords have the upper hand. They put white carpets in...demand deposits which they never intend to return....don't maintain their properties.........anything for a fast buck.

If you intend to remain human, perhaps you should just do what's right and ethical!

HugoSP

He's left a deposit and paid for the first month in full. Now he has left.

He needs to give 4 weeks notice REGARDLESS of whether or not he signed the contract. This is why he pays 4 weeks in advance.

As ts_aly says, he then needs to pay a further 4 weeks from when he left.

In contrast to what I said earlier he should get his deposit back minus the balance of the 4 weeks notice payment he owes you.

As he's moving out 2 weeks before the end of the month and he's paid up until the end of the month then I guess you'll owe him 2 weeks.

I suspect he'll be a pain in the !!! about it though. Just stand your ground

Gorgeous_George

I assume that there was no damage to be recovered from the deposit.

Advertise the room immediately. If you find a new tenant before the 4 weeks notice period would have ben completed, deduct the weeks that were lost.

People should treat each other with common decency regardlss of contract law. Your (former) tenant is being an !!!. Don't let him/her walk over you.



GG

lewolf

If you do end up giving him any money back make sure it is by cheque so it;s traceable and get hime to sign that he has received an amount from you and what it is for. Keep copies of everything and refuse to deal in cash.