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

GDB2222

By the way, I am sorry about your situation, and I know that you don’t want to hear that you are in the wrong. But, if you are, it’s best to face up to the reality, rather than digging a deeper hole.

FreeBear

Annealise said:   - I am entitled to unemployment benefit and a reduction in council tax until I find a tenant.  

Do not ever refer to them as tenants - To do so, confers additional legal protections. It is always a lodger.

Hopefully, you will find a good 'un fairly quickly. Just don't be too hasty and make the mistake I did and end up with a nightmare pair.

Annealise

GDB2222 said:

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.

 Are you referring to the situation with the girl in question?  The room was already occupied until Saturday by another lodger as she had given me 3 months notice.

yes that’s what I plan to do as can’t sit here  waiting for months  with losses.

GDB2222

Annealise said:

GDB2222 said:

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.

 Are you referring to the situation with the girl in question?  The room was already occupied until Saturday by another lodger as she had given me 3 months notice.

yes that’s what I plan to do as can’t sit here  waiting for months  with losses.

I'm sorry. You did say in the original post that you have a lodger in the room until September. I'm afraid that I missed that.

Clearly, double-booking the room would not have been possible.  It's also not wise to re-let the room formally until it's actually vacant. So, my 'solution' doesn't apply.

Sadly, the Act I cited bans non-refundable holding deposits, so you will have to work out something that stops you being dumped in the do-do again in the future, without breaking the law. 
 

Annealise

GDB2222 said:

Annealise said:

GDB2222 said:

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.

 Are you referring to the situation with the girl in question?  The room was already occupied until Saturday by another lodger as she had given me 3 months notice.

yes that’s what I plan to do as can’t sit here  waiting for months  with losses.

I'm sorry. You did say in the original post that you have a lodger in the room until September. I'm afraid that I missed that.

Clearly, double-booking the room would not have been possible.  It's also not wise to re-let the room formally until it's actually vacant. So, my 'solution' doesn't apply.

Sadly, the Act I cited bans non-refundable holding deposits, so you will have to work out something that stops you being dumped in the do-do again in the future, without breaking the law. 
 

The room wasn’t double booked??? The existing lodger gave me 3 months notice  and I gave the moving out date to the new lodger. 

 If the girl was indeed a  tenant, that  act cites reasons for not refunding a deposit ie  if a tenant withdraws you can keep the deposit.
 
I wasn’t aware  that this act is  also applicable to Lodgers;  ie the holding deposit is only allowed to be  1 weeks rent.  On  the Spare Rooms  website everyone requires 1 months deposit - it is the norm and allowed.

saajan_12

A holding deposit is for while you're doing checks, before you agree to let a property. You can't take > 1 week deposit to hold the room, but not net commit to letting to her. 

The only argument here would be that you actually entered into a verbal, binding contract for her to rent the room starting say 25th Sept and the £400 was a security deposit. She failed to move in, which is a breach of that contract, and your loss is the lost rent until you get someone else to move in. You return the security deposit less any contractual losses, and sue for any excess. 

The difficulty is one of proof, especially if you said things like "to secure the room" and "we'll sign the contract when you move in". 

Annealise

Just phoned  Spare Rooms and they have confirmed that the site is for ‘lodgers’
only and it is perfectly legit for all advertisers of rooms to request one months deposit  to secure the room until the lodger moves in and obviously refund it at the end of their stay.

There is a big difference between a tenant and a lodger.

saajan_12

Annealise said:

Just phoned  Spare Rooms and they have confirmed that the site is for ‘lodgers’
only and it is perfectly legit for all advertisers of rooms to request one months deposit  to secure the room until the lodger moves in and obviously refund it at the end of their stay.

There is a big difference between a tenant and a lodger.

That would be a security deposit, not holding deposit. 
There is indeed a big difference between a tenant and a lodger. Tenant fees is not one of them. 

Q. Does the new tenancy deposit cap apply to me? 

The cap on tenancy deposits applies to all applicable tenancies. This includes assured shorthold tenancies, tenancies of student accommodation and licences to occupy housing in the private rented sector in England.

PlumLuck

Annealise said:

Just phoned  Spare Rooms and they have confirmed that the site is for ‘lodgers’
only and it is perfectly legit for all advertisers of rooms to request one months deposit  to secure the room until the lodger moves in and obviously refund it at the end of their stay.

There is a big difference between a tenant and a lodger.

Not exactly true. I stayed in a HMO that was advertised on spare rooms and was given a normal tenancy agreement that I would get when privately renting anywhere else - and everything else that comes with that. I wouldn't rely on them as the experts, they are just the marketing portal.

980233

Annealise said:

Just phoned  Spare Rooms and they have confirmed that the site is for ‘lodgers’
only and it is perfectly legit for all advertisers of rooms to request one months deposit  to secure the room until the lodger moves in and obviously refund it at the end of their stay.

There is a big difference between a tenant and a lodger.

You've been told countless times on the position, you need to give the money back.