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Advice on tenant deposits and rent/bill payments

Hello all!

The tenant in my current shared property has given notice to leave and will be due to move out in a few weeks. The person has been a difficult tenant to say the least, and has thrown me a few curve-balls regarding what she should and shouldn't be paying. I wanted to get some advice and ideally some official/legal statements which I can use to support my side, if indeed I am right.

The facts...

- Tenant paid a deposit plus a month's rent up front when moving in and has paid monthly rent since, albeit never on time!
- Tenant pays half the bills, included in this monthly payment
- Tenant notified me in writing on 20th July that they would be ending the contract and 'looking to' move out on 31st August
- Tenant then notified me on 4th August that they in fact wanted to move out on 25th August
- There is no plans to re-rent the room after leaving, so no benefit to a quick turnover
- There is no breach of contract on either side in terms of complaints or breakages etc
- I haven't kept the deposit in an independent scheme

The questions...
- Tenant now claims that the should only be liable to pay until 25th August. My view is that I was given the date of 31st, albeit I recognise this was an approximation.
- Tenant claims that they shouldn't pay rent for the remaining week. My view is that they should pay full month.
- Tenant claims that at the very least they shouldn't be paying the bills for the final week as they will not be present. My view is that this is no different to going on holiday for a few weeks, when you don't expect a refund.
- Tenant is refusing to pay final month in advance, claiming that the deposit can be used for this. I recognise that this is done informally sometimes and that it makes it easier for the tenant to put a deposit down on the next place. However, I have already paid out for their monthly rent (I manage the place on behalf of my friend and pay for both rooms to him as the owner) so I would be losing out in the short term and put at risk if anything is broken/missing/not cleaned etc. My view is that a deposit is for covering any issues after the tenant leaves, not for rent. This has always been the case wherever I have rented previously.

So...

- What date should the contract and payments end on? 25th or 31st?
- Should she pay bills for the 25-31st when they aren't there?
- Should the deposit be used as the last months rent, and what happens if they refuse?

Some speedy thoughts would be much appreciated, the tenant is already snapping at my heels demanding answers!

Many thanks!
«134

Comments

  • RAS
    RAS Posts: 36,627 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Are you living in the shared property or not?
    If you've have not made a mistake, you've made nothing
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Is this a lodger?

    Next time include bills in the rent. They don't have to pay for the bills if they aren't there and using anything.

    If the lodger wants to move out on the 25th then I'd let them.

    Deposit shouldn't be used for last payment of rent but many try. If this really truly is a lodger then ask lodger to leave immediately. You don't need to give a lodger notice at all.

    If this really is a tenant with an assured shorthold tenancy then don't push anything at all...let T go whenever they want and use the deposit as rent. You haven't protected the deposit. T can ask court to grant them 3 times the deposit back with no deductions.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • jjlandlord
    jjlandlord Posts: 5,099 Forumite
    HappyMJ wrote: »
    You don't need to give a lodger notice at all.

    That's not correct.

    The agreement or common law rules regarding notices to quit still apply.
  • thesaint
    thesaint Posts: 4,324 Forumite
    Part of the Furniture Combo Breaker
    Who is the landlord on this persons tenancy agreement? Are you also on it as a joint tenant?
    Why have you paid out their rent when it hasn't been received?
    Well life is harsh, hug me don't reject me.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    jjlandlord wrote: »
    That's not correct.

    The agreement or common law rules regarding notices to quit still apply.
    When did that change then? I thought if a lodger shared the home with a landlord and shared facilities it was "reasonable notice" which isn't defined in any law which could mean...I want you to get your stuff together and get out in about an hour.

    It sounds like but I'm not 100% sure that the OP has a tenancy with another landlord and the tenant is also a live in landlord to a lodger who is sharing the property including the bills with them.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • RAS
    RAS Posts: 36,627 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It has not changed.

    In the absence of any written agreement, it is "reasonable notice" and what is reasonable might be different if you just want to stop taking lodgers (one rental period is what Shelter suggest) rather than stop housing someone threatening violence.

    If you have a written lodger agreement, then it depends what notice period was written into the agreement.
    If you've have not made a mistake, you've made nothing
  • jjlandlord
    jjlandlord Posts: 5,099 Forumite
    In the absence of any specific agreement, at common law you must give no less than a whole period notice to end a licence or a tenancy. This is not a suggestion.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 5 August 2015 at 6:34PM
    Until you clarify the occupant's status and contract you cannot be given meaningful advice.

    * do you share the property with the occupant?
    * are you the occupant's landlord?
    * Do you rent the property yourself from a 'higher' landlord?
    * does the occupant have a written contract? Is it a tenancy agreement? Lodger agreement? something else?
    * is the occupant's written contract between you and he, or between him and your landlord?
    * what does the agreement say about the term of the agreement (eg 6 months?)
    * what does it say about notice period?
    * what does it say about bills/utilities?
    How/when was notice given ("Tenant notified me in writing on 20th July that they would be ending the contract and 'looking to' move out on 31st August" - quote the full exact words used. 'looking to' could be interpreted as a vague target, which does not constitute notice. Or it could be a clear date, which IS notice. Need the full wording)
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    RAS wrote: »
    It has not changed.

    In the absence of any written agreement, it is "reasonable notice" and what is reasonable might be different if you just want to stop taking lodgers (one rental period is what Shelter suggest) rather than stop housing someone threatening violence.

    If you have a written lodger agreement, then it depends what notice period was written into the agreement.
    If a lodger of mine refused to pay rent then I'd be giving immediate notice to vacate....i.e within a few days. With a deposit taken I'd be generous and say they can stay until the weekend then they must leave. I certainly would not allow the lodger to stay the month rent free then when the room has been emptied I find damage then I have no deposit to take the damages from and lodger is nowhere to be seen. Why would they hang around they aren't getting anything back in any case and they don't have to leave a forwarding address?
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Sorry, to clarify...

    Essentially, the flat is owned by a friend of mine who is now living on the other side of the world and asked me to manage it for him, meaning I take responsibility for the day-to-day landlord-style issues and find a second tenant for the second room. Yes, I live in the first room.

    I have a contract with the landlord and pay him the full rent from both of us on the 1st of each month by direct debit, so that's already been paid for. In theory the second tenant puts their half of the rent into my account by direct debit at the same time so I'm not left out of pocket. All previous tenants have done this, but annoyingly this one insists on making the individual transfer each month and it has sometimes been a week late, but I've not raised it as an issue because I've always got it eventually. In this case, she hasn't paid at all yet and is requesting to use the deposit as the rent instead. I know it sounds long-winded and you might ask why the second person doesn't pay straight to the landlord, but this is how we agreed to do it so, we are where we are.

    I then have a contract with the tenant which describes me as the 'property manager, acting on the landlord's behalf'. This contract states (direct quotes) that...

    -The rent is X per month payable in advance on the 1st day of the month, payable by standing order to the property manager.
    -[FONT=&quot]The tenant will divide payment of the bills equally with the Property Manager, which will be payable on the 1st day of every month by direct debit to the Property Manager.
    [/FONT]
    [FONT=&quot]-[/FONT]The tenant is required to pay a deposit of X. The deposit will be held as security by the Property Manager, acting on behalf of the Landlord against non-payment of rent or early termination of contract by the tenant and for any damage caused to the property by the tenant. The deposit will be returned to the tenant within 14 days from the end of the tenancy less any deductions for sums properly incurred by the landlord under the tenancy.

    - [FONT=&quot]Either party must give one month’s prior written notice to terminate the tenancy[/FONT]

    Her 'notice' was worded as "As per our conversation I will be ending my contract and am looking to move out on the 31st August."
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