Money Moral Dilemma: Should our mate cover the deposit lost on our house share after he pulled out?

MSE_Kelvin

This week's MoneySaver who wants advice asks...

Four mates and I were planning to move in together. We found a five-bedroom house to rent that we all agreed on, and paid a holding deposit of £530. A week later, one said he was going to continue living with his parents, so the rest of us could no longer afford the house as it would mean each paying £115 a month more. We lost the deposit, leaving each of us £106 out of pocket. Should we ask him to pay us all back?

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fourmarks

I certainly think you should ask him for the money, he's reneged on your agreement and has left you out of pocket.

If I were him I would repay each of you without the need to be asked.

However, only you and your friends can determine how asking for the money will affect your friendships and what the price of that may be.  Your call.

hazyjo

Don't see how it's any different to, say, buying a house, spending money on surveys, solicitor, etc, and someone pulling out. Nothing would be reimbursed.

These sorts of decisions on "what if" scenarios should be made before paying anything. Unfortunately, lesson learned. Try asking, but it's definitely not worth losing a friend over. 

silvercar

You should have taken the property and found a 5th person for the other room. That is fairly standard practice. Unless you have all  got incredibly smelly feet or similar unsavoury habits, you should have little problem finding another person.

youth_leader

I agree with silvercar, good Uni houses are rare and competition very high.  My daughter saw about three before they found theirs.

Ed264

I agree that he should be expected to reimburse you all. Not only have you lost money on the deposit, you've all had significant inconvenience. Finding a replacement for him might not be as straightforward as it sounds.

JaneHenery

I think you should ask him to contribute, certainly. It all depends on how much you value your friend. You need to have a strategy in place this time, though, for what happens if he says no. Are you all going to fall out with him, take him to court, or just let it slide because you like him? Decide that BEFORE you ask for money. 

REJP

It does not say it was a rental for University students.  Neither does it say if he pulled out because he realised he could not afford the move.  I suggest a visit to Letting Agents to try finding another suitable property would be more productive than trying to get money from the friend.

Katecooks

No way; he's clearly going to stay at home because he can't afford to pay rent or due to parental pressure. You should have found a 5th person to replace him. If the landlord was decent he would have returned most of your money - he only held the property for a week.

bikaga

Feel free to ask him. But also take it as a lesson - if there's 5 people sharing a place that cheap, at some point something's going to come up. A sick relative, an unexpected expense, someone losing income, someone having to move out for personal reasons, a repair. If you can't absorb £530 between 4 of you until you've found a replacement, it would be a big risk to take on the responsibility of a new place to live.

BobbyMcGee

This is quite straight forward really. He broke a commitment which cost you all money, so yes there is a clear moral case for him to cover the lost deposit. However, it might be worth discussing what prompted his change of heart so you can understand his behaviour. It might make you all more likely to forgive the £106.