Deposit Used as Rent

anon_private

How common is the following system

I am renting a room in someone's house. There are three lodgers.

The system is that we, on arrival, pay one months rent in advance and a further deposit (on month's rent). The following month, I will pay the rent, and so on.

When I give notice, I will get the final month free. The original advert stated 2 months minimum rental period

There is no paperwork, rental agreement, etc. but I asked for a receipt for the cash payment, and received one.

No problems so far, but it seems an unusual system.

Thanks

hammy1988

I'd smell a rat at any system when there is a lack of paperwork.

Have they protected the deposit in the scheme? If so then that's something at least, if not, run a mile.

Sounds like you need your rental agreement clarifying and putting in writing, it will save a lot of hassle in the long run...and ultimately is the legal thing to do.

Protect yourself as a tenant.

Pixie5740

hammy1988 wrote: »

I'd smell a rat at any system when there is a lack of paperwork.

Have they protected the deposit in the scheme? If so then that's something at least, if not, run a mile.

Sounds like you need your rental agreement clarifying and putting in writing, it will save a lot of hassle in the long run...and ultimately is the legal thing to do.

Protect yourself as a tenant.

Live-in landlords do not need to protect lodgers' deposits. Furthermore, lodgers are not tenants but excluded occupiers.....big difference.

Pixie5740

anon_private wrote: »

How common is the following system

I am renting a room in someone's house. There are three lodgers.

The system is that we, on arrival, pay one months rent in advance and a further deposit (on month's rent). The following month, I will pay the rent, and so on.

When I give notice, I will get the final month free. The original advert stated 2 months minimum rental period

There is no paperwork, rental agreement, etc. but I asked for a receipt for the cash payment, and received one.

No problems so far, but it seems an unusual system.

Thanks

It's not particularly usual. The deposit is there to cover any damage that you do over and above fair wear & tear. Whilst the landlord might refer to it as a deposit it sounds more like rent in advance.

hammy1988

Pixie5740 wrote: »

Live-in landlords do not need to protect lodgers' deposits. Furthermore, lodgers are not tenants but excluded occupiers.....big difference.

My bad... that'll teach me for skim reading

DumbMuscle

So... wait. Lets say you were in the property from June to September. Just to be clear I understand this.

In May (before moving in) you pay 2 months rent (1 month as deposit, + 1 month for June, paid in advance)
In June, you pay rent for July
In July, you pay rent for August, and give notice to leave in September
In August, you pay no rent (as September is free, taken out of the deposit)
In September, you pay no rent (as you will not be there in October)
There is no deposit refund (as it has been used to pay rent) - so what does the LL do if there is damage?

OR

In May (before moving in) you pay 2 months rent (1 month as deposit, + 1 month paid in advance)
In June, you pay rent for June
In July, you pay rent for July, and give notice to leave in September
In August, you pay rent for August
In September, you pay no rent (as it is covered by the month in advance), and your deposit is refunded at the end (minus deductions for damage)

Which does the landlord mean? Both could be seen as "final month free". The former matches how rental payments usually work (i.e. you pay in advance for each rental period), the latter matches how deposits usually work.

But yes, you have a payment system you don't fully understand, and no paperwork to fall back on when your understanding is different to the landlord's. You need to fix at least one, preferably both, of these problems.