Deposit in a joint tenancy

summers4264

I will be moving to a new city in the next month or so and will be looking to rent a 2 bed apartment initially on my own. I will then look for a housemate shortly after move in and split rent, bills, etc. I've been in contact with a few letting agents who have said I can add a second person onto the tenancy with some admin fees to be added onto the contract.
However I will have to pay the full deposit (around £1000) as the other tenant will be moving in at a later date. I will have to take the hit for the full cost. I asked if there was anyway I can be refunded my half of the deposit upon finding a new housemate but I was told that the deposit gets protected at the commencement of the tenancy and cannot be amended during the tenancy period.
I'm just a little concerned as will this mean that if there was damaged caused to the property by the other tenant I would be the one having to pay out as its all my money in the deposit. I would like to think that this would never be the case and my future flat mate would pay the costs if they were responsible. I am just wondering if anybody knows what my options are in this situation or would it just be a verbal agreement between us?

G_M

Surely a better soluion would be for you to remain as sole tenant?

You could then find a flatmate to be your lodger.

You would be his live-in landlord.

He would pay you a deposit - no need to protect it in a scheme as he's not a tenant. If he leaves befoe you, you'd have to pay his deposit back, but could then find a new lodger and take a new deposit. If you both leave at the same time, you'd get your deposit back from the scheme and pay him his deposit.

* he'd pay his rent to you. You would be liable to your landlord/agent for the full rent of the property.

You can read more in these links:

LODGERS (Licencees/Excluded Occupiers)
A lodger (broadly) lives in the same property with a resident landlord & shares facilities. Unlike tenants, lodgers have few rights.

The Housing Act 1988 provides definitions of 'Resident Landlord' & 'same property' (S31 & Schedule 1 (10).

See:

LodgerLandlord (21 tips from solicitor Tessa Shepperson + General information site)

Landlordzone (Various articles on taking in lodgers)

Renting out rooms in your home (Government info)

Rent a Room Scheme (HMRC guide for tax-free income from lodgers)



As for the agentss suggestion, it's not that simple as just 'adding' a tenant. It would need to be done by a Deed of Assignment. A simpler option would be to bring the original tenancy to an end, by mutual agreement(returning the deposit to you), and then create a new, joint, tenancy in 2 names and take a new deposit (which you could each contribute to).

summers4264

Thanks for the advice. A problem I have faced is that most letting agents I have been in contact with have told me that they wont allow subletting and I'm guessing this also covers having a lodger. With the property I am going to view next week I was told the following

With regards to adding another tenant at a later stage, as discussed telephonically earlier today. The new tenant would need to be pay an administration fee of £96.00 and go through the same referencing procedure and right to rent checks. We would need to have an addendum signed to add the additional tenant to the current tenancy.

The deposit gets protected at the commencement of the tenancy and cannot be amended during the tenancy period.

G_M

A lodger is not a tenant so this ould not be sub-letting.

Sub-letting would be if you moved out and let the entire property to someone else who became your tenant whilst you remained the tenant of the property owner.

As you would be the lodger's landlord (and their contract would be with you) it would be for you to reference them to decide if you wished to grant them a licence to occupy (note - not a tenancy).