Tenancy deposits and lodgers
Although I wrote about this on Day 16 of my 21 days of tips for lodger landlords, I think it is worth repeating.
- The tenancy deposit regulations only apply to assured shorthold tenancies
- It is legally impossible for someone renting a room in your home to have an assured shorthold tenancy
- Therefore tenancy deposits taken from lodgers do not need to be protected on a government authorised tenancy deposit scheme.
Expanding a bit on this, most lodgers will not have a tenancy at all, as they will not have ‘exclusive occupation’ of their room. See more of this on Day 1 of the 21 days of tips and my five tips on how to avoid creating a tenancy.
Even if your lodger does acquire a tenancy of his bedroom, it is not possible for this to be an assured shorthold tenancy. This is because the Housing Act 1988 specifically excludes tenancies with resident landlords from being assured shorthold tenancies.
The only time an AST can be created where the landlord lives in the same building is where that building is a purpose built block of flats and the landlord lives in one and the tenant in another.
So if your lodger tells you that you are breaking the law by not protecting the deposit he has paid, do not worry, he is wrong.
What if I signed an AST with my lodger? Doesn’t the contract become legally binding? Unfortunately, I signed an AST with my lodger and the AST stated that I would use a “Deposit Protection Scheme”…although, I didn’t understand what any of that meant.. I only wanted to get something in writing with my lodger. My lodger is now taking me to court for 3x the amount of his deposit, even though I returned his deposit – less the damages, unpaid rent and share of bills.
If the situation is a genuine lodger situation – ie if you share living accommodation, it is not possible for it to be an assured shorthold tenancy. In which case the deposit does not need to be protected because the scheme only applies to assured shorthold tenancies.
My lodger left without giving a full month notice as agreed when she moved in. She did not give the keys back and is demanding her deposit. No written notice. Am I able to keep the small deposit as she did not give me a month notice.?
Probably, but it will really depend on the terms of your agreement with her. But generally deposits can be retained in lieu of rent if the lodger does not give the agreed notice.
My lodger would like to claim housing benefit (i’m fine with this over a brief period, he’s a dynamic sort of bloke and i trust him to look for and find more work asap), but has asked me for proof of his lodger-ness in order to claim.
We don’t use a contract, it’s a friendly agreement with a trusted friend.
What am i required to show to/send the hosuing benefits people on his behalf?
Many thanks, Stu
What they will want to see is a lodger agreement. We sell them on the site http://lodgerlandlord.co.uk.gridhosted.co.uk/shop/ or you can get them in some stationers.
As its for his benefit you could ask him to pay for it …
Hello, I verbally told my lodger on moving in that I require one month’s notice and I would do the same. He has wrote a note the day before the rent is due to say he is leaving as of now, and to return the £150 deposit to him. I txt him about the verbal agreement and now he is threatening solicitors, court actions, and rebates etc. I have said he can collect the rest of his belongings at 8 tonight, but he wants to continue threatening court action.
How do I stand on returning the deposit, can I keep it to cover the notice not given?
@Adrienne This is why it is a good idea to have a written agreement! Often people will threaten things without actually carrying them out. I suspect in this case it is just bluff.
If he does issue proceedings, then it would be your word against his. I think that there are odds on the Judge believing you as it is farily normal for lodger landlords to require some form of notice.
Maybe use a written agreement in future. You can buy one here, see the shop link in the navigation bar above.
Hi, I have a lodger who has a 6month lodger agreement and has breached the contract by invading my own home with a number of random people until 1 in the mornin they were asked to leave on numerous occasions but failed too. She was disrespecting and they were all very overpowering, following this I ordered her to leave as I felt scared in my own home and give her 48 hours to remove her belongings. My question is do I have to give her the full deposit back? And give her the remainding money for the rest of the month or does she have to pay me until the agreement ends? I’m confused as to who needs to pay what, she still has till October till the agreement ends. Thankyou
Hi
My lodger and I had a written agreement of 12 months occupancy. She has given me 1 months notice to leave 5 months early which I was not expecting so she can move closer to work. She has also caused damaged to her room, the stairwell, hallway and bathroom. Am I entitled to keep her deposit? I’d allowed her to move in without the full deposit in the first place and have had issues with her cleanliness in the bathroom!
Thanks
H
@Dayle @HellenD You are only really entitled to make a deduction from the deposit if you have actually spent money. For example if you have had to pay £20 to replace the table lamp they broke or if it cost £50 to do repair work on the stairs. You can also use it to cover unpaid rent.
However you can’t keep it just because the tenant behaved in an unsatisfactory way or kept their room in a mess (unless it was so bad that you had to employ a professional cleaner).
In short you generally have to be able to justify a deduction by having a receipt for the amount of money deducted.
Hi,
Need some honest advice on situation.
Still awaiting refund of deposit from landlord nearly a year after leaving as their lodger. LL wont discuss, negotiate, she just states demands with offer of very small part-refund. I have advised ill turn to small claims court shortly to resolve matters. Am at the end of my patience. Have offered concessions, gestures to conclude matter, LL not interested.
LL never offered or presented an agreement to sign that expressed terms for notice…..or anything at all, just a verbal date for rent payments agreed on arrival, stayed little over 2 months in total. Gave 2 weeks written notice (to end when next months rent due), due to duress (my room wasnt private, generally dismissive, aggressive, sarcastic etc) and several incidents that created uncomfortable household environment and tension. Removed possessions and stayed with friends whilst notice wound down. LL only mentioned notice after my departure.
This was first time lodging. Am now aware in retrospect that notice is ideally length of rent payments as per basic contract law (?), but didnt feel able to stay longer or safe enough residing there and wanted to leave asap. Feel that LL didnt give me an alternative but to leave promptly but she now wants payment in lieu of notice and wont discuss settlement for mutual benefit.
Want matter resolved fairly and definitively, do i have an argument in the SCC in your opinion? Or do I take it on the chin and walk? Any thoughts welcome.
You may succeed, but whether you do it depends on how much money is involved and how much time you have to spend messing about with court proceedings. On the one hand actually issuing court proceedings may make the LL pay up to avoid it. On the other hand LL may defend which will involve you in a contested hearing.
If it is just a small sum, I would suggest walk. However if it is something you can’t afford to lose maybe give it a go. Bear in mind that the Judge may think it right to deduct the other 2 weeks notice to bring the notice period up to 28 days.
I’d really appreciate some advice- thank you in advance.
My lodger has stolen the keys to my flat (including some very expensive key fobs) and is refusing to give them back until I refund the money for the days he did not live in the room.
At the beginning of the tenancy, we agreed in writing (albeit an email) that one month’s written notice would be required.
He gave me one month’s written notice on 16th June that he would be leaving and agreed in writing that his deposit would be used to cover the rent for the first two weeks of July.
He moved out early of his own accord and as a result, I’ve let a friend crash for free in the room. The former tenant is angry about this and is demanding money back for the period that someone else was staying in his room.
How do I deal with this? Isn’t this essentially theft? Numerous emails have flown to and from, all taking a polite and firm tone from my side but weeks later, he is still refusing to give back keys.
Further, do you think my house insurance will cover replacement of locks?
Thanks so much for advice. I’m very worried.
@Grace If in fact you had put someone else in the room and it was no longer available for him to use, I rather think he has a point about the refund for this time. I would suggest you try to reach an agreement with him, I think you are on shaky ground here.