Lodger secured a room with a deposit 6 weeks ago and now can’t move in - My rights?

Annealise

I am a live in landlord  and take a lodger, not for pocket money but to pay most of my household bills. A girl moved in, in April and considerately gave me her contract finishing date for September. I therefore had the security of easily finding another lodger during the summer when the intake of tenants for my area is at its peak. 

I was inundated with enquires and turned down people for  what I thought was a nice person 6 weeks ago. I took a deposit ( which doesn’t even cover 1 months rent  but I  know times are hard for people at the moment ) to secure the room for her, until 25the September.
In our initial meeting I told her it was non refundable  to secure the room.

This weekend she  has now given me 24hrs notice that she was unable to move in due a new job not working out.  I know she has another part time job and lives at home, so she’s not destitute. She has left me in an untenable position of not being able to find a replacement tenant at short notice, plus I won’t be able to pay  October  bills. She has demanded her deposit back  saying she did not enter into a contract with me so I have no right to keep her deposit . In good faith I said if I was able to find another  lodger within the next 2 weeks , I could refund her half the deposit. She said she appreciated the gesture,. However from past experience I know  Oct-Dec are the slackest month’s for finding lodgers and I could be without rent for months now

 She is now threatening me with the small claims court and  making nasty personal  comments that  I need her money more than her and I should claim benefits or get a job.

All this has triggered my PTSD and I am unable to speak to a citizen advice adviser anywhere in the country, which is ridiculous - can someone please  advice me if I’m  within my rights to keep the deposit. 

rexmedorum

have you got anything in writing, (including emails)?

gettingtheresometime

What notice period would you expect from her, had she moved in.

AdrianC

She clearly DID enter into a contract with you, else why would she have given you the money in the first place?

So it becomes a question of what is documented between you. Was it all verbal? Is anything at all in writing?

If not, then it's a simple he-said-she-said. Which side will a court side with? Who knows. Likely whoever produces the most convincing documentation to back their claim up. Whether that's you or them, it's a lot of hassle and stress that you almost certainly don't need for what, in the grand scheme of things, is not going to be a large amount of money. We're talking about a couple of weeks rent at most for a room in a shared house?

The simplest way out of this is undoubtedly a compromise. You've offered to repay half if you can find another lodger quickly. Do so, whether or not you find another lodger.

Ignore the "nasty personal comments", except insofar as they show that you've had a lucky escape from having to share your home with this person.

I assume that you do have other sources of income than a lodger's rent. If not, that's a very precarious position to be in - and her "nasty personal comment" about claiming the benefits to which you would undoubtedly be entitled is not at all "nasty", but actually quite sound advice.

Annealise

Sadly no, regarding the deposit being non refundable. I usually ask people then and then who want the room to leave a deposit and sign a piece of paper with the amount and state it is  to secure the room and is not refundable.  However she  wanted to go home and think about it and then did a balance transfer with the deposit. I have  an email thanking her for the deposit and that I will give her a receipt when she moves in  and that I had removed my advertisement from the ‘ Spare Room ‘ website  for her.

I  provide a lodgers agreement document when a lodger then moves in.

Annealise

gettingtheresometime said:

What notice period would you expect from her, had she moved in.

I request one months notice

Jude57

If you have agreed in writing that the deposit is non-refundable then you may be able to keep it. Otherwise, probably not.  Also, be aware that if the non-lodger does go down the small claims route, the court will expect you to have mitigated your losses. That means offering proof that you have tried all reasonable steps to find another lodger; the court won't accept you just saying that it's impossible, you'll have to prove that. I presume you're already advertising in every possible way so as to get someone in quickly.

CAB are vastly oversubscribed and under-resourced. I'm not sure how long you might have to wait to speak to them but it's worth persevering. You might have legal cover on your car, home or life insurance so check that. Also, if you're a Union member you'll probably have legal cover that's not just for employment issues.

If your financial situation is so precarious, I'd recommend speaking to CAB about that, too, as it may be there are other avenues to explore

AdrianC

Annealise said:

Sadly no, regarding the deposit being non refundable. I usually ask people then and then who want the room to leave a deposit and sign a piece of paper with the amount and state it is  to secure the room and is not refundable.  However she  wanted to go home and think about it and then did a balance transfer with the deposit. I have  an email thanking her for the deposit and that I will give her a receipt when she moves in

The time to state non-refundability would have been in that email, as you do on the receipt.

I repeat my suggestion as to the easiest resolution.

TripleH

Have you relisted the room?

Regardless of the situation, you need to show you are trying to minimise your losses. Do you have to pay a fee to list your room on the website or if you find a lodger?

You would have a reasonable chance of arguing those fees at least could be kept.

Annealise

rexmedorum said:

have you got anything in writing, (including emails)?

Please see my reply below to you.

Annealise

TripleH said:

Have you relisted the room?

Regardless of the situation, you need to show you are trying to minimise your losses. Do you have to pay a fee to list your room on the website or if you find a lodger?

You would have a reasonable chance of arguing those fees at least could be kept.

Yes I relisted  the room at a cost of £28  a month immediately.