Subletting a room - What to do with Deposit

weebit

Hi all,

Sorry if this has been asked before - I did a search but couldn't find an answer to my question.

I am just about to sub-let a room in my 2-bedroom house (which I rent from a private landlord via an Estate Agent). The Agent and Landlord have given me permission to do so.

The person I'm renting the room to is unknown to me and so I'm asking for a deposit of 1 months' rent to cover any damage or unpaid rent etc. My question is, do I need to pay this into a deposit scheme as if I'm the landlord, or can I keep it in my own bank account?

I've sub-let the room before but they've always been friends so we didn't ask for a deposit, so this is a bit new to me.

Thanks
-Jay

Mojisola

weebit wrote: »

I am just about to sub-let a room in my 2-bedroom house (which I rent from a private landlord via an Estate Agent). The Agent and Landlord have given me permission to do so.

Isn't this person a lodger rather than a tenant?

weebit

Mojisola wrote: »

Isn't this person a lodger rather than a tenant?

That's the crux of my question really... is the person renting my room a tenant or a lodger? Or something else?

es5595

NO!

The person moving in is a lodger, you are now a resident landlord, and therefore do not need to protect their deposit.

https://www.gov.uk/rent-room-in-your-home/rent-bills-and-tax

00ec25 wrote: »

YES
you are genuinely sub letting to a tenant therefore you are in all respects the LL of that tenant and must meet all the obligations of a LL, including protecting any deposit you take

This is wrong, they cannot be an assured shorthold tenant as they are a lodger. Therefore deposit protection is not a requirement.

G_M

NO.

You are taking in a lodger and do not need to protect the deposit (though you can choose to do so if you wish).

Put it in a savings account so you still have it for when the lodger moves out.

Have you vetted the lodger? How?

Have you provided a written contract and does it specify your 'house rules' (or are these written elsewhere)?

Critically, what notice period is specified? I recommend a week either way, with rent paid weekly (or if monthly rent, then repayment pro rata of any advance rent paid at the end of the week's notice).

For more, see

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)