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

Irishpearce26

zagubov said:

Here in London single people renting rooms to lodgers to make ends meet is completely routine and many home-owners or renters find it essential.

Jobs come and go regularly and if residents were obliged to inform their banks of changes in their ciorcumstance, the banks phones would be busy all the time with homeowners notifying them of quitting or losing their jobs.

Changing jobs is fine if you can still afford the mortgage payments, losing your job however the bank will know either way as they reposes the house. Same goes for not being able to keep up with payments its a slippery slope.

Edit: Im sure there will be some sub text in the mortgage agreement that says any changes need to be notified. However London appears to null of any regulations.

Wanderingpomm

GDB2222 said:

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

Lodger not tenant this isn’t relevant 

MaryNB

Wanderingpomm said:

GDB2222 said:

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

Lodger not tenant this isn’t relevant 

We've already covered this in the thread. For the purposes of the Act the term tenant includes licensees (lodgers).

From the Act:

lookstraightahead

Irishpearce26 said:

zagubov said:

Here in London single people renting rooms to lodgers to make ends meet is completely routine and many home-owners or renters find it essential.

Jobs come and go regularly and if residents were obliged to inform their banks of changes in their ciorcumstance, the banks phones would be busy all the time with homeowners notifying them of quitting or losing their jobs.

Changing jobs is fine if you can still afford the mortgage payments, losing your job however the bank will know either way as they reposes the house. Same goes for not being able to keep up with payments its a slippery slope.

Edit: Im sure there will be some sub text in the mortgage agreement that says any changes need to be notified. However London appears to null of any regulations.

People lose their jobs all the time and still pay their mortgages. Banks don't want to repossess your house!  It's a last resort, expensive and not cost effective.

What do you mean "London is null of any regulations"? It's not a different country! 

GDB2222

For the OP, instead of taking a holding deposit, and then leaving the room empty for a month, you should follow a different process that actually puts you in a better position.

I suggest that you start the letting immediately, but at a lower rent, so that it averages out the same over the whole period as a vacant period followed by a higher rent. That is within the law and it means that you are allowed to keep what’s paid up front if there’s a no show. 

Of course, there’s a risk the lodger will actually move in during this period, but a student is fairly unlikely to do that.

Annealise

Irishpearce26 said:

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?

It’s only when you have tenants  and not lodgers you need to  use a protected scheme. I have a separate bank account for deposits.

if I sold my property I would have to share the equity with my  ex partner and there would not be enough money for me  to buy a property. I have done the best on my own   to keep  my house going . Renting is ‘ dead money’ and the money from my house would be gone in no time. In the meantime house prices are increasing. By taking lodgers I have used my initiative. I normally rent two rooms out  which but in the process of redecorating one. 

Annealise

AdrianC said:

Annealise said:

AdrianC said:

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.

I stand  to lose £560 a month until I can find someone. It’s a lot of money to me. The deposit was £400 too. The benefits system does not pay mortgage payments so I decided to take a lodger. It has worked out well over the last few years as I am unable to work due to bad health.  I also  have some financial  assistance from  my son. 

Claim the benefits you are undoubtedly entitled to.

https://forums.moneysavingexpert.com/categories/work-benefits-business

I have already enquired  - I am entitled to unemployment benefit and a reduction in council tax until I find a tenant.  

Annealise

Irishpearce26 said:

zagubov said:

Here in London single people renting rooms to lodgers to make ends meet is completely routine and many home-owners or renters find it essential.

Jobs come and go regularly and if residents were obliged to inform their banks of changes in their ciorcumstance, the banks phones would be busy all the time with homeowners notifying them of quitting or losing their jobs.

Changing jobs is fine if you can still afford the mortgage payments, losing your job however the bank will know either way as they reposes the house. Same goes for not being able to keep up with payments its a slippery slope.

Edit: Im sure there will be some sub text in the mortgage agreement that says any changes need to be notified. However London appears to null of any regulations.

My mortgage lender is aware of my  situation - the term ends next year.

Annealise

canaldumidi said:

Annealise said:

......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.

But not confirmed in writing. So your word against hers.

I request one months notice

But again, not in writing. So your word against hers.

First up - obviously there is a contract. She gave you money (bank transfer is proof) and in return you agreed to provide the room (email proof). Lawyers call this 'Consideration' which clearly applies in this case.

The terms of the contract are unfortunately verbal so impossible for either side to prove. A judge would decide "on the balance of probability" what he believes when you each present your arguments.

As Adrian said earlier, compromise is the best way forward. It's always better to avoid court where you can. However, when suggesting a compromise, be very careful not to write anything that might suggest she is entiled to the deposit, or that the deposit was refundable, or that the notice period was anything ess than 1 month. If it does go to court, anything you now write could be presented later to a judge.

There's a good chance of course that her threat of court is a bluff. People do this all the time to scare the other party into backing down. Whether she'll actually want to pay the court fees, and commit to the hassle and time of court action will depend on her personality, and her finacial position, as well as the amount involved.

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.

She is not accepting  your last paragraph, saying it was verbal and I should have written a contract. No landlords with lodgers however  do this.  I am stupid to have not emailed her reiterating it.   She’s stating I have no right to keep her hard earned money

GDB2222

Annealise said:

canaldumidi said:

Annealise said:

......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.

But not confirmed in writing. So your word against hers.

I request one months notice

But again, not in writing. So your word against hers.

First up - obviously there is a contract. She gave you money (bank transfer is proof) and in return you agreed to provide the room (email proof). Lawyers call this 'Consideration' which clearly applies in this case.

The terms of the contract are unfortunately verbal so impossible for either side to prove. A judge would decide "on the balance of probability" what he believes when you each present your arguments.

As Adrian said earlier, compromise is the best way forward. It's always better to avoid court where you can. However, when suggesting a compromise, be very careful not to write anything that might suggest she is entiled to the deposit, or that the deposit was refundable, or that the notice period was anything ess than 1 month. If it does go to court, anything you now write could be presented later to a judge.

There's a good chance of course that her threat of court is a bluff. People do this all the time to scare the other party into backing down. Whether she'll actually want to pay the court fees, and commit to the hassle and time of court action will depend on her personality, and her finacial position, as well as the amount involved.

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.

She is not accepting  your last paragraph, saying it was verbal and I should have written a contract. No landlords with lodgers however  do this.  I am stupid to have not emailed her reiterating it.   She’s stating I have no right to keep her hard earned money

It doesn’t matter whether it was in writing or not. It’s illegal to have a holding deposit of more than one week's rent, and it’s illegal to keep any of it if the tenancy doesn’t go ahead. 

If this goes to court, you are bound to lose. What is more, Trading Standards can fine you heavily.

You should settle up with your lodger on the best terms you can. Do that ASAP, before things escalate.