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Where do I stand please as private landlady on this issue?

I just want to know where my rights stand on this issue as I am now left out of pocket before having to cover my bills and monthly expenses. I advertised for a new lodger 1 month ago and the first lady to view the room wanted to take it as she had split up with her boyfriend. We liked her after chatting with her for a while so we went ahead with getting references, credit checks, asking her to fill in the lodger application form with her driving licence/ID details, etc. We both filled in and signed the lodger agreement form we have with her (bog standard contract incorporating standing order agreement, early termination notice, our responsibilities under the law and her responsibilities as our lodger under the law, etc). We all signed the contract with a copy for her and the original we kept. We also agreed her move in date to be Easter Monday. She paid her full month in advance rent money in cash to which I gave her 1 carbonated, signed receipt and a separate wad of cash for the deposit money again of which I gave her 1 carbonated, signed receipt. I have cashed both into a separate bank account to where they have remained as yet. However come Easter Monday we heard nothing from her. I texted and called to ask what time she thought she would be coming over as we were going out for a while and she immediately replied she didn't have enough money for the rent now and would not be able to take the room - this was 3 weeks after we all signed the agreement and agreed her move-in date! I have now lost 3 weeks worth of advertising on my room for another lodger and I am concerned that being the start of the month my bills are now about to go out of my account and I will not now have enough to cover them due to my potential lodger suddenly backing out without giving me any notice. Am I entitled to keep her deposit money? This usually I thought covers damages upon the lodger moving out but can it also legally be used here as the room booking deposit, similar to how a hotel uses a room booking deposit? Can anyone help as she is now obviously wanting all her money back but I'm loathe to do this as I have been unfairly treated myself here?

Comments

  • If she has agreed to a specific term and can't pay then you would most likely be eligible to keep the deposit and first months rent and chase her for more money -- although you could always agree to not. As this is a lodger there is no deposit protection required.

    Please post a copy of the contract that you signed.
  • tim123456789
    tim123456789 Posts: 1,787 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You're entitled to keep the money to cover your costs and lost profit

    Tell her to take a hike.
  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If there has been a consideration exchanged (money) and the agreement has been signed by both parties then the contract is in force. It's unlikely you have to give all the money back in my opinion.

    What notice was she able to give under the contract? You should regard her as having given notice and refund her any excess.

    Personally, I'd probably keep the one month's rent and return the whole deposit even if technically I could charge more (for example, if she cannot terminate the contract that quickly). That way you aren't out of pocket for the three weeks you have lost, but you aren't trying to profiteer on the technical basis of your contract (which you are probably entitled to do, but up to you if worth the aggro)
  • trailingspouse
    trailingspouse Posts: 4,042 Forumite
    Part of the Furniture 1,000 Posts
    It takes two to sign a contract, so keep as much of the money as you require to cover your costs. You're not running a charity.
    No longer a spouse, or trailing, but MSE won't allow me to change my username...
  • If she has agreed to a specific term and can't pay then you would most likely be eligible to keep the deposit and first months rent and chase her for more money -- although you could always agree to not. As this is a lodger there is no deposit protection required.

    Please post a copy of the contract that you signed.
    Thanks for this. I can't seem to post the contract - problem with my scanner however looking at the contract we've both signed I have written 'duration: ongoing - 3+ months' so presumably I could technically charge her for 3 full months rent. I don't think I want to do this as that seems pretty extreme to me for what it's worth. However from this would I be perfectly within my rights to keep both the deposit money and her 1 month rent in advance stating that this is the money I have lost out on? I am half-minded to think that it would be more amenable of me in this particular situation to say I will return her months rent money but retain the deposit money as this was the money she paid me to book the room? Does this seem more reasonable or the standard thing to do?
  • If there has been a consideration exchanged (money) and the agreement has been signed by both parties then the contract is in force. It's unlikely you have to give all the money back in my opinion.

    What notice was she able to give under the contract? You should regard her as having given notice and refund her any excess.

    Personally, I'd probably keep the one month's rent and return the whole deposit even if technically I could charge more (for example, if she cannot terminate the contract that quickly). That way you aren't out of pocket for the three weeks you have lost, but you aren't trying to profiteer on the technical basis of your contract (which you are probably entitled to do, but up to you if worth the aggro)
    Just seen your post! Unfortunately something I never do and not really sure why I did this time - on the contract under 'Intended termination date - ...' and under 'Early termination notice period (either party can terminate this agreement prior to the intended termination date) ...' I left both blank. Under the heading 'duration ...' I completed the contract as 'Ongoing - 3+ months' so the contract really does state a minimum of 3 months stay but I did not have an agreement on any early termination period or an intended termination date with her - presumably this could work two ways if she wants to dispute this ie: could she say the rest of the contract if nullified because I haven't set an intended termination date with her? And/or that I have not set a minimum termination period she has to give (although I thought by law this has to be the same period of time as your agreed rental such as if paying rental on a month by month basis, you would have to give a months notice of termination to your landlord?). I am just slightly concerned that having left these 2 bits blank I've left myself open to her being able to say she can have everything back because I didn't set a period of time in which she would have to give me notice of ending her contract with me?
  • jamie11
    jamie11 Posts: 4,436 Forumite
    You have kept the room for her for three weeks, you are entitled to charge her for those weeks.

    Since she never moved in there can be no damages to claim for, you should mitigate your losses and no more from the deposit and return the rest to her. Remember that a deposit remains the property of the tenant until and unless you have a claim against it.

    As a (would be) lodger she has few rights, in reality if it came to court a judge would be looking for fairness on both sides.
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