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

GDB2222

The Tenant Fees Act 2019 came into force two years ago. It limits holding deposits to one week's rent. It requires holding deposits to be refundable. You have not got a leg to stand on. Refund the lot.

This is not what you want to hear, but you need to understand that you are in breach of the law. I urge you to read the guidance.

There's an official guide to the Act here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/922898/Tenant_Fees_Act_2019_-_Guidance_for_landlords_and_agents.pdf

Easier to read, unofficial guidance is here:
https://england.shelter.org.uk/professional_resources/legal/costs_of_renting/tenant_fees_and_other_costs/banned_tenant_fees_and_penalties_for_landlords

AdrianC

saajan_12 said:

Well not exactly 6 weeks lost rent, as that would have been lost anyway (or the portion after the first lodger moved out) even if this one did move in as planned. Your loss is the lost rent for the time AFTER the expected move in date, until you can relet the property plus cost of reletting. 

Up to a maximum of the month's notice required...

GDB2222

Quoting from the Shelter website:

Financial penalties for landlords and agents

An enforcement authority can impose a civil penalty if it is satisfied beyond all reasonable doubt that a landlord or agent has committed a breach of the tenant fees rules.

The civil penalty can be up to:[15]

• £5,000 for an initial breach

• £30,000 for any subsequent breach within five years

There are also rules about criminal prosecutions for repeat offenders. You can't be in the letting business, without being au fait with the legislation. 

saajan_12

Annealise said:

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.
..
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
 

Annealise said:

gettingtheresometime said:

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

I request one months notice

If you have a rolling contract with 1 month notice, then you're still opening yourself up to having to relet in Oct-Dec if someone serves notice, which they legally can. This might be worth it so that you can kick someone out in a month rather than living together acrimoniously, but the mid-term reletting possibility is the trade off. 

If she had moved in as planned, then just think what would have happened?
* Holding deposit turned into security deposit for damages
* Serve notice on first day of month
* Pay 1 month rent for Sept-Oct
* If it takes you longer than 1 month for you to relet, the extra void is on you
* No ability to claim lost rent from lodger as she had correctly served notice. 

Irishpearce26

Did you put the deposit in a protected deposit scheme? Was there a formal contract or was it verbal.

Sounds like you cant afford this property without the reliance of other people, maybe sell up and rent your own property?

GDB2222

I don't have lodgers, but AFAIK the deposit protection rules don't apply to lodgers.

Irishpearce26

GDB2222 said:

I don't have lodgers, but AFAIK the deposit protection rules don't apply to lodgers.

So I'm guessing either does any verbal contract for that matter. What regulates a lodger/person hosting? 

GDB2222

Irishpearce26 said:

GDB2222 said:

I don't have lodgers, but AFAIK the deposit protection rules don't apply to lodgers.

So I'm guessing either does any verbal contract for that matter. What regulates a lodger/person hosting? 

A verbal contract is a valid contract. The problem is determining what was said - as attributed to Sam Goldwyn.

I'm the wrong person to ask about the rules for lodgers, but the best place to look is probably the Shelter website. 

Grabs39

Irishpearce26 said:

(Quote removed)

That’s unfair to say the least.  Mortgages typically last 20 years or so, circumstances often change in that time, and not always for the best.

canaldumidi

saajan_12 said:

So your issue will be proving the agreement, as it was verbal up to this point. If ultimately a judge does believe your version of the verbal agreement, then 
* £400 was a holding deposit to secure the room in the event she doesn't move in. She didn't move in, ergo £400 non refundable
* Agreed to let the room for £560pm on a rolling contract with 1 month notice. Due to her breach, you've had to readvertise and lose rent for x weeks from her start date to the date you find a new lodger. Those damages can be counterclaimed. 

 

canaldumidi said:

Of course, the other way to go is to play hardball (or is that an american expression...?): Repeat that the deposit is non-refundable; you held the room for 6 weeks; you turned down other applicants; you lost rent for those 6 weeks; and.... if she makes a claim in court for the deposit, you will counter-claim for 6 weeks lost rent.

Well not exactly 6 weeks lost rent, as that would have been lost anyway (or the portion after the first lodger moved out) even if this one did move in as planned. Your loss is the lost rent for the time AFTER the expected move in date, until you can relet the property plus cost of reletting. 

Legally correct.

My suggestion was it is an option to play hardball, lay out the finaial costs to yourself so she understands them, as well as aspects of the legal position.

That does not mean that if push comes to shove you actually counter-claim the 6 weeks rent. As Sajaan says, when it it comes to counter-claiming in court you do soon the basis of the agreement ie 1 months notice or rent till new lodger moves in, whichever is sooner.

But ideally you avoid court and a fight to the death. A little compromise and mutual understanding is always the better option.