Cash in hand for rented room

username678

Hi everyone, hope someone here can help!

I have always rented through letting agencies/estate agents but due to a change in circumstances, I am going to rent a room through spare room.

The landlord seems lovely and the room is fine, but they would like the deposit and all monthly rent money in cash. Is this normal or dodgy? I have always done bank transfers before and feel a bit unsure about walking around with that much cash on me!

Thanks in advance!

Guest101

Cash is fine just ask for receipt.


Since it's a room, presumably you're paying a relatively small amount anyway

username678

Guest101 wrote: »

Since it's a room, presumably you're paying a relatively small amount anyway

No such luck, especially in this part of the country. It's a room, plus bills and use of kitchen and bathroom. Not a small amount of money but the cheapest in the area.

NinaSwiss

Will the landlord also live there?
If so make sure you have some form of agreement between yourself and the landlord. Helps to manage expectations on either side eg on notice period.

If not then you will probably need an AST contract.

NinaSwiss

I should have said ... make sure you have some form of written agreement between yourself and the landlord.

Landlord accepting payment in cash only does not necessarily mean he/she is dodgy. but like Guest101 suggests, you can ask for receipt for each payment or even a confirmation text message each time you make a payment.

HouseBuyer77

It's certainly less dodgy for a lodging arrangement. You have little legal protection anyway (no protected deposit, can be quickly and easily evicted) and the landlord may not have to pay tax on the income (google rent a room scheme if you want the details). So basically there's little for the landlord to avoid that might make them want cash so there's no paper trail.

username678

The landlord will be living there as is one lodger already,

Would the written agreement need to be through solicitor or would something simple that we both sign be okay?

00ec25

as there are you plus at least one other lodger, payment cash in hand is very likely done for tax evasion purposes

until this year if a LL received more than £354 per month in total from lodger(s), including any share of bills, then the LL would have to pay tax on that income. Perhaps your LL is used to cash in hand for that reason.

However, from April 2017, the tax free total increased to £625 pcm, but as there are (at least) 2 lodgers, and you say it's a "high rent", it remains possible that the total from all is above that higher limit anyway, so the LL needs to carry on with cash in hand to aid his tax evasion

if he is evading tax, it has no effect on you living there unless you end up disputing whether you had paid him or not in any given week because obviously there will be no paper trail to show you have.

Of course morally you may want to report him to HMRC for tax evasion nonetheless?

NinaSwiss

OP... If you are not comfortable with making payments via cash ask the Landlord if this is possible to make them via bank transfer.

If that isn't an option, you can always find somewhere else where the landlord will agree to bank transfers. If you are in London there are plenty rooms available for let to choose from.

username678

I did say bank transfer but she said cash.

I am in Surrey and need to live in a specific area and there are slim pickings of rooms at the moment and I need to find one I can afford asap.

Guest101

username678 wrote: »

I did say bank transfer but she said cash.

I am in Surrey and need to live in a specific area and there are slim pickings of rooms at the moment and I need to find one I can afford asap.

Just out of curiosity how much are you paying?