Money Moral Dilemma: Should I increase my housemates' rent?

jjlandlord

sclare wrote: »

Lots of people here clearly don't know much about flat sharing.

At least we do know the legal aspects, which is enough.

Anatidaephobia

What a strange dilemma.

Pixie5740

sclare wrote: »

Lots of people here clearly don't know much about flat sharing.

It's pretty much the norm for one person to be the one responsible to the landlord for rental payment. Few landlords want the hassle of dealing with three or four people separately. Also the same person is usually the one paying the bills, and so needs the cost of those to be added their flatmates' monthly share of the rent. It would be foolish person in this position who didn't factor in a very small amount to cover any blips in the quarterly bills or minor changes to a direct debit.

Normally that person would ask that his flatmates pay a deposit upfront, and arrange direct debits which pay their rent in advance (so at the beginning of the month for rent due at the end). That way if a flatmate disappears, the rent has been paid in lieu of notice, and if there's been any damage, or cleaning is required, the deposit will cover it.

The person in this dilemma seems not to have done those things.

In a joint tenancy everyone will have already paid a deposit to the landlord to cover damage, cleaning, etc.

Everyone has joint and several liability for paying the rent. In the event that a landlord wants a single rent payment those giving their rent money to a flat mate who will then pay it to the LL are also taking a risk. What if that person spends the rent money rather than passing it on to the landlord?

Only a complete tool would put all the bills in a flat share into their name only.

Talent

Whilst we don't know the circumstances behind you taking on the responsibility, it's difficult to make a judgement.
Someone else must have had the responsibility and they gave up or even left the houseshare.
I wouldn't have taken it on and if the landlord insists on one person, I would have looked for somewhere else.... but that's me!

lynneinjapan

If you have a joint tenancy then you'll (almost definitely) all be jointly and severally responsible for paying the rent. That means that if you don't pay up then the landlord can chase any one of you for the money so, if anything, (as someone else has already said) THEY'RE the ones taking the risk.

On the other hand, if the tenancy is only in your name and you have the landlord's permission to rent rooms out to lodgers then you can charge them whatever rent you like, but you run the risk of them moving out in protest and you being left to shoulder the full amount on your own.

If the tenancy is only in your name and your friends are living there without the landlord's permission then you are probably putting the landlord in breach of his mortgage conditions (if he has a mortgage) and very likely invalidating his insurance, not to mention giving him grounds to evict you for breach of tenancy.

sclare

Only a complete tool would put all the bills in a flat share into their name only.

You think that the energy companies, council tax people and phone/TV/broadband suppliers will do the maths and send three or four separate bills to the people sharing the property? Of course one person has to be the named bill payer. Each sharer being responsible for one bill doesn't work either. Every time someone moved out (which happens fairly often in a flat share) there'd be problems setting up a new billing account.

Jabberwk

I've flat shared for 13 years in different combinations of people. Each person taking a different bill has never been an issue. The utilities people are quite comfortable with the idea that the named person might change once a year as this is normal in a rented flat. All it takes to sort out is a phone call. They also (unlike my LA) don't have an issue with receiving three bacs transfers for each bill, so long as it adds up to the right amount and they have one named person to chase if it isn't paid.

gloriouslyhappy

moneyistooshorttomention wrote: »

Something somewhere along those lines might be a possibility. That is, you have some money off them to put (safely/legally/etc) to one side that covers you in case they try to "do a runner" at the end of their tenure. If they did try and do a runner, then you have the money set aside to cover you against it impacting on you personally. On the other hand, assuming they are behaving perfectly honourably and paying their whack when due = they get that money back again intact come the time.

That way = win/win. You aren't taking any risks on their behalf of them trying to land you with THEIR bills ever on the one hand, but you aren't actually charging them any extra and making a profit from the fact that some people are dishonourable and would "do a runner" on you on the other hand if they had the chance to get away with it.

Sounds all fair and everything "all present and correct" and I doubt honest people would try and object to that, provided you made it quite quite clear you weren't planning on "making a profit" from having taken the "responsibility" of being the "designated person".

You are protected. They are protected. No-one could possibly steal (or make a profit) from anyone else = sorted....

If you take a deposit off someone for renting from you, even as a rent-sharer rather than the individual tenant who signed the rental contract, then you in effect become their landlord, and that deposit has to be lodged with a government- authorised company:

from .gov.uk:

'Your landlord must put your deposit in a government-backed tenancy deposit scheme (TDP) if you rent your home on an assured shorthold tenancy that started after 6 April 2007. In England and Wales your deposit can be registered with:

Deposit Protection Service (Custodial and Insured)
MyDeposits - including deposits that were held by Capita
Tenancy Deposit Scheme
There are separate TDP schemes in Scotland and Northern Ireland.

They make sure you’ll get your deposit back if you:

meet the terms of your tenancy agreement
don’t damage the property
pay your rent and bills
Your landlord or letting agent must put your deposit in the scheme within 30 days of getting it.

At the end of your tenancy
Your landlord must return your deposit within 10 days of you both agreeing how much you’ll get back.

If you’re in a dispute with your landlord, then your deposit will be protected in the TDP scheme until the issue is sorted out.

Holding deposits
Your landlord doesn’t have to protect a holding deposit (money you pay to ‘hold’ a property before an agreement is signed). Once you become a tenant, the holding deposit becomes a deposit, which they must protect.

Deposits made by a third party
Your landlord must use a TDP scheme even if your deposit is paid by someone else, eg a rent deposit scheme or your parents.'

Pixie5740

What you said was

sclare wrote: »

It's pretty much the norm for one person to be the one responsible to the landlord for rental payment. Few landlords want the hassle of dealing with three or four people separately. Also the same person is usually the one paying the bills, and so needs the cost of those to be added their flatmates' monthly share of the rent.

Only a tool would make themselves responsible for all the bills in the property.

sclare wrote: »

You think that the energy companies, council tax people and phone/TV/broadband suppliers will do the maths and send three or four separate bills to the people sharing the property? Of course one person has to be the named bill payer. Each sharer being responsible for one bill doesn't work either. Every time someone moved out (which happens fairly often in a flat share) there'd be problems setting up a new billing account.

I never said anything about having more than one name on a bill. I was merely pointing out that 1 person taking responsibility for every bill is silly. Each flat mate should take responsibility for a bill.

When people leave flat shares and it is a joint tenancy they have then when the person leaves it ends the joint tenancy for everyone. The sensible thing to do would be to close the utility bills for that group of people and start new ones with the new tenants.

I have lived in flat shares before so I am perfectly aware of how they work.

tallgirld

You what?
You chose to take on this 'risk'.
There is no way you should charge them more.
What exactly would this surcharge be for??
Risk?
You chose to take it you pay for it!