Sub-tenant refuses to pay rent

D8D

Hi all.

I'm a lead-tenant renting a flat as a whole from my landlord, the tenancy is solely in my name, and subletting the other two bedrooms to subtenants (stating sole-use of their bedrooms in their sub-leases). The landlord is aware and approves this.

The current sub-tenant of one of the rooms moved in 20 days ago, however he didn't sign the contract I sent him (a two months rolling contract). Now, the sub-tenant informed me he'll be moving out end of September, however he refuses to pay September's rent and says I should use his deposit instead (his deposit is equivalent to one month's rent). I explained rent and deposit are two separate things and he cannot live in the flat in September without a deposit in place. I also explained I don't hold his deposit, the deposit I originally gave the landlord is held in a scheme, and the deposit he gave me when moving in was paid back to the sub-tenant who moved out before him, in the same way he'll get his deposit back once he moves out. So if he doesn't pay rent, I will need to pay his share out of my own pocket. He still refuses.

Is someone able to please advise me what are my options here? I don't want to do anything which is against the law of course, however I hope there are some laws in place to protect me as a sub-lessor as well, or at least some possible actions available? Naturally, I want to avoid having a sub-tenant stay in the flat without a deposit in place as it carries all sort of risks - damage, theft, etc. This is my main concern.

If he doesn't agree to pay rent isn't he in breach of contract (even though he didn't sign it. Does this help me in any way?), and doesn't this enable me some space for action? Like changing the locks for example, or any other suggestion?

Thanks for your help.

Soundgirlrocks

Stop thinking in terms of sub-tenant, he is your lodger, and as such he has much fewer rights. He shouldn't use the deposit to cover the rent, however if he where to leave owing rent you would be entitled to use the deposit to cover this.

However I alarm bells are ringing, if he were to move out tomorrow would you be able to return his deposit? It doesn't sound like you would, it sounds like you are reliant on the deposit from the next tenant, what happens if you can't let the room immediately? If someone came on here asking for advice because they suspected their landlord didn't have the deposit money to return they might well be advised to use the deposit to cover the rent

Comms69

D8D wrote: »

Hi all.

I'm a lead-tenant renting a flat as a whole from my landlord, the tenancy is solely in my name, and subletting the other two bedrooms to subtenants (stating sole-use of their bedrooms in their sub-leases). The landlord is aware and approves this. - You aren't subletting. You have lodgers.

The current sub-tenant of one of the rooms moved in 20 days ago, however he didn't sign the contract I sent him (a two months rolling contract). Now, the sub-tenant informed me he'll be moving out end of September, however he refuses to pay September's rent and says I should use his deposit instead (his deposit is equivalent to one month's rent). I explained rent and deposit are two separate things and he cannot live in the flat in September without a deposit in place. - so evict him. I also explained I don't hold his deposit, the deposit I originally gave the landlord is held in a scheme- WHY?! , and the deposit he gave me when moving in was paid back to the sub-tenant who moved out before him, in the same way he'll get his deposit back once he moves out. - oh my.... just stop it, stop it now So if he doesn't pay rent, I will need to pay his share out of my own pocket. He still refuses. - You are always liable for the rent, regardless of if he pays or not.

Is someone able to please advise me what are my options here? I don't want to do anything which is against the law of course, however I hope there are some laws in place to protect me as a sub-lessor as well, or at least some possible actions available? Naturally, I want to avoid having a sub-tenant stay in the flat without a deposit in place as it carries all sort of risks - damage, theft, etc. This is my main concern. - What contract did you send him?

If he doesn't agree to pay rent isn't he in breach of contract (even though he didn't sign it. Does this help me in any way?), and doesn't this enable me some space for action? Like changing the locks for example, or any other suggestion?

Thanks for your help.

Depends if you gave him tenants rights or not.

getmore4less

I explained rent and deposit are two separate things and he cannot live in the flat in September without a deposit in place. I also explained I don't hold his deposit, the deposit I originally gave the landlord is held in a scheme, and the deposit he gave me when moving in was paid back to the sub-tenant who moved out before him, in the same way he'll get his deposit back once he moves out.

If you really have a tenancy agreement for exclusive use then then should you not protect that deposit properly in a deposit protection scheme?

Your deposit for the whole house is independent of those(potential) sub tenants deposit.

as is the rent.


Stick to lodger agreement

D8D

Thanks for the replies.
Yes, I understand a lodger agreement is the way forward in the future.
However currently his contract states he has sole-use of his bedroom so I think this makes him a sub-tenant (plus the contract refers to him as a sub-tenant). Lesson learned.
As for his deposit, the contract says his deposit will be paid back to him within one month of his departure, so no issue there. The room will always get filled with someone new, we're in London and it's a decent flat, there's always demand.

I understand I'm liable for paying rent, and I will do of course. This is my problem, not my landlord's.

I'm just seeking advice on my options in the current situation please - can I do nothing but accept his refusal to pay rent and have him living there for a month without a deposit in place?

(does the fact we didn't actually sign the contract I gave him help me in any way?)

Thanks

theartfullodger

https://forums.landlordzone.co.uk/forum/residential-letting-questions/1077149-sub-tenant-refuses-to-pay-rent


Two landlords: Not sure either is getting matters 100% correct.



D8D: Are you declaring your income from your lodgers to HMRC? You certainly should be, assuming more than £625/mo total rents. Avoid those fines & penalties!

Slithery

If they are a tenant instead of a lodger then it was your responsibility to place their deposit in one of the registered schemes. Failure to do this means they can take you to court and will get awarded 1-3x the deposit as compensation for your incompetance.

If I were you I'd give the tenant what they want to get them out with no fuss and hope they don't get clued up on their legal rights.

Comms69

D8D wrote: »

Thanks for the replies.
Yes, I understand a lodger agreement is the way forward in the future. - Obviously.
However currently his contract states he has sole-use of his bedroom so I think this makes him a sub-tenant (plus the contract refers to him as a sub-tenant). Lesson learned. - so is it an assured shorthold tenancy
As for his deposit, the contract says his deposit will be paid back to him within one month of his departure, so no issue there. - But is it protected? The room will always get filled with someone new, we're in London and it's a decent flat, there's always demand. - irrelevant

I understand I'm liable for paying rent, and I will do of course. This is my problem, not my landlord's.

I'm just seeking advice on my options in the current situation please - can I do nothing but accept his refusal to pay rent and have him living there for a month without a deposit in place?- if he's a tenant, it could be 9 months before he's out

(does the fact we didn't actually sign the contract I gave him help me in any way?) - no

Thanks

If you've given him tenants rights, then you cannot, ever evict him, only a court can.


Also you must provide him with a gas safety certificate, EPC, how to rent guide, deposit protection certificate / PI, and conduct right to rent checks.


You may also need to apply for a HMO licence, install fire fighting equipment etc.

D8D

I think it's necessary for me to first figure out if they're indeed considered sub-tenants or lodgers in the eyes of the law. Another thread suggests the wording of the contract might not be the determent of this?

The contract which I've given him has been written by me. I did copy in some wording from online sources, but it's a simple word document I drafted. It's titled 'lease agreement' and refers to me as the sublessor and him as the subtenant. The line about sole use says: 'sole use of the assigned bedroom and shared use of the communal areas'.

As for protecting the deposit, this suggest I don't need to (if I'm considered a resident landlord, even if I'm a sublessor)? It refers to the renter as 'tenant'.

Comms69

D8D wrote: »

I think it's necessary for me to first figure out if they're indeed considered sub-tenants or lodgers in the eyes of the law. Another thread suggests the wording of the contract might not be the determent of this? - Stop calling them sub tenants, they aren't that no matter what. They're either YOUR tenants, or YOUR lodgers.

The contract which I've given him has been written by me. I did copy in some wording from online sources, but it's a simple word document I drafted. It's titled 'lease agreement' and refers to me as the sublessor and him as the subtenant. The line about sole use says: 'sole use of the assigned bedroom and shared use of the communal areas'. - But it's important to know what you copied from online resources...

As for protecting the deposit, this suggest I don't need to (if I'm considered a resident landlord, even if I'm a sublessor)? It refers to the renter as 'tenant'.

This is what sub-leasing is.


You rent a property, and then sublet the WHOLE property. You aren't doing that.

D8D

I've just rang propertyinvestmentproject for some advice, they said that regardless of the wording of the contract, if the contract duration is less than 6 month it's not considered an Assured Shorthold Tenancy. Therefore legally my tenant will be considered a lodger. Thoughts?

Moreover, I found this:
Tenants are excluded from protection if their landlord is a Resident Landlord, which means I'm only required to give 'reasonable notice'. So does this effectively overrides our written contract which states one month notice?
See Resident Landlord section on (can't post links as new user): shelter uk /tenancies_excluded_from_protection

If this is the case, my tenant is considered an 'Excluded Tenant', which means I only need to give him reasonable notice. Our contract does say one month notice, however since he breached it by not paying rent am I right to understand that as an excluded tenant I can evict him on a reasonable notice only?
See 'eviction of excluded occupiers' section on (again, can't post link unfortunately): shelter uk / excluded occupiers

Also, as such I don't need to protect the tenant's deposit.