Problem Lodger

alright_dave

Hi, Just after a quick bit of advice, I've had a friend of my partner move in temporarily to help them out, which I took a deposit of them, but didn't put into a deposit scheme (I wasn't aware I needed too at the time). They've now moved out (after 4 months) but left a trail of destruction, bed destroyed, damage to carpets, etc. As I wanted to keep the deposit to replace the bed and carpet, they're now threatening me with a solicitor. Just wondering if these cases always go in the tenants favour as I haven't followed the guidelines or if it's worth fighting. All I can say is never again. 

TadleyBaggie

Lodger or tenant, your post isn't clear which?

alright_dave

A lodger. 

propertyrental

The lodger can claim the penalty (up to 3 times the deposit) from the landlord for failing to register it in a scheme. Ignorance of the law is no excuse. The judge might impose either 1x, 2x or 3 times the deposit depending how seriously he interprets the scenario in question (and how well the LL argues in mitigation). but he must impose one of those 3 penalties.

None of that affects rhe LL's right to claim against the deposit itself for damage (rent arrears or whatever).

And if the damage costs exceed the amount of the deposit, the LL can sue in the small claims court.

The 'penalty' and 'claim' for damages are separate issues (though the cases may be heard together.

theartfullodger

Have you lived in that property for all the time from before they moved in until now?  If not, an AST, if yes a lodger.

FreeBear

propertyrental said: The lodger can claim the penalty (up to 3 times the deposit) from the landlord for failing to register it in a scheme. Ignorance of the law is no excuse.

Nope. There is no legal requirement to place the deposit in one of the schemes. Indeed, to do so, is one step closer to granting a tenancy which needs to be avoided at all costs - Had this argument with local Housing Dept at the council. They took legal advice (apparently) before confirming deposit protection was not a requirement.

alright_dave

theartfullodger said:

Have you lived in that property for all the time from before they moved in until now?  If not, an AST, if yes a lodger.

I've owned the property for 8 years and lived in it the whole time, they moved out yesterday after a 4 month stay.

elsien

Agree. There is no obligation to protect a lodger deposit.
https://www.guillaumes.com/news/taking-in-a-lodger-what-are-the-rights-of-a-lodger-and-landlord

 Stop calling him a tenant if he wasn’t, that just muddies the waters. Although you do need to check you haven’t accidentally granted him a tenancy by putting a lock on his door and allowing him to refuse you access to his room,  for example

On what basis is he saying he will contact a solicitor? 

I would suggest getting a quote for the damage and letting him know that he’s lucky you’re not taking him to the small claims court for the surplus may focus his mind slightly.  Threatening with a solicitor, or even a solicitors letter means nothing at all. He would need to take it to court. And win. If you can evidence the damage, he’s not going to get very far  with that.

sourpuss2021

propertyrental said:

The lodger can claim the penalty (up to 3 times the deposit) from the landlord for failing to register it in a scheme. Ignorance of the law is no excuse. The judge might impose either 1x, 2x or 3 times the deposit depending how seriously he interprets the scenario in question (and how well the LL argues in mitigation). but he must impose one of those 3 penalties.

None of that affects rhe LL's right to claim against the deposit itself for damage (rent arrears or whatever).

And if the damage costs exceed the amount of the deposit, the LL can sue in the small claims court.

The 'penalty' and 'claim' for damages are separate issues (though the cases may be heard together.

Has your account been hacked?!?

Obviously there is no need to protect a lodger’s deposit and I’m mystified why you’d suggest otherwise!

propertyrental

FreeBear said:

propertyrental said: The lodger can claim the penalty (up to 3 times the deposit) from the landlord for failing to register it in a scheme. Ignorance of the law is no excuse.

Nope. There is no legal requirement to place the deposit in one of the schemes. Indeed, to do so, is one step closer to granting a tenancy which needs to be avoided at all costs - Had this argument with local Housing Dept at the council. They took legal advice (apparently) before confirming deposit protection was not a requirement.

Apologies. I got confused by lodgers being included along with tenants by the Tenant Fees Act. Though that in itself is confusing.....

The ban applies to all assured shorthold tenancies, tenancies of student accommodation and licences to occupy housing in the private rented sector in England. The majority of tenancies in the private rented sector are assured shorthold tenancies.
In this guidance ‘tenant’ includes licensees.

So the limit on the size of a lodger's deposit is restricted by the TFA, but not the requirement to protect it.

I think....

alright_dave

Thank you everyone for the help, It's much appreciated. Feel so much better about the whole situation now.