Protecting deposits for lodgers (more than one) how to do it?

silvercar

I’m not sure your mortgage lender would be impressed with you granting tenancies!

FlickyK

Ok yeah I think I understand now... so it’s basically impossible to protect lodgers deposits in a scheme as that would make them tenants?

Anyway I’ll have to explain that to them!

Thanks for all the advice everyone!

G_M

FlickyK wrote: »

Ok yeah I think I understand now... so it’s basically impossible to protect lodgers deposits in a scheme as that would make them tenants?

Anyway I’ll have to explain that to them!

That is certainly an explanation you could offer. Whether they believe you will depend how well up they are on property law, since it is not true.

There are various things you can do which might increase the likelihood of unintentianally creating a tenancy. The more of these actions you do, the more likely it is - hence the various pieces of asvice above

"Just create two completely independent tenancies" - very bad move!
"I'd be careful. You don't want to create a landlord-tenant relationship when a landlord-lodger one would be far simpler" - Be careful.
"More important is ensuring your contract is sound" - I deliberately chose the word 'contract'.
"It's not a tenancy or at least I hope you haven't granted tenancies" - ie by using the word 'tenancy'.

But no one has actually said protecting the deposit would create a tenancy.

anselld

G_M wrote: »

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"Just create two completely independent tenancies" - very bad move!
.

To be clear, I said that only about the mechanics of entering the deposit into DPS because that is how DPS label it. The comment was not intended to imply anything about the contract and I would agree that creating a "tenancy" within DPS does not create one contractually.

ThemeOne

Your lodgers can't be very well informed about property law otherwise they would know it's not usual to protect lodgers' deposits.

I would say just that to them i.e. it's not usual and not required by law either, so the answer is no. If they don't like it, this might be a sign they're not such nice people or good lodgers as you are hoping, as further unrealistic requests may follow!

ThemeOne

Lover_of_Lycra wrote: »

One months notice is a long time to be stuck living under the same roof as someone you can't stand if things go sour.

Wouldn't disagree with that, but on the other hand one week is a very short time for someone to pack up their stuff and find alternative accommodation.

onwards&upwards

ThemeOne wrote: »

Wouldn't disagree with that, but on the other hand one week is a very short time for someone to pack up their stuff and find alternative accommodation.

If you set it as a week there is nothing to stop you extending it if you want to, but if you set it as a month you can’t then shorten it!

A week gives you a better range of options in case of nightmare situations.

cloo

|In your position, I'd offer to put the deposit money aside (and keep it a small amount) and look after it but say you can't put them in tenancy schemes because that creates legal complications for all of you

Comms69

"Hi X, I've looked into protecting the deposit but there seems to be complications as you are a lodger, not a tenant. I've instead opened a separate account and put it in there. Here is a receipt for the deposit and the inventory which we can both sign."

FlickyK

Thanks all, that is exactly what I’ve done and they’ve agreed so we won’t put the deposits in a scheme!

Thanks for the advice everyone - really appreciate it!