Inventories and deposits tend to go together. Again, these are things that not all lodger landlords will bother with. However, when letting a stranger into your house, there is no harm in being careful.
A deposit is a payment taken for the landlord to hold against any damage to the property or breakages. If when the lodger leaves, things are in good condition and there are no rent arrears, the money should be returned.
Lodger landlords are in a better position than landlords of properties rented out to tenants under assured shorthold tenancies (ASTs). There are now regulations requiring AST landlords to protect all deposits with >> a government authorised tenancy deposit scheme. However as a lodger does not have a tenancy, any deposit taken does not need to be protected.
Even if the lodger does somehow acquire a tenancy, the deposit still won’t need to be protected (so long as you are still living in the property), as tenancies with resident landlords cannot be ASTs.
However, even though a deposit may not need to be protected in a government scheme, this does not mean you should not take care of it. It is best to put it in a separate account, so you won’t be tempted to spend it. Remember – it’s not your money!
If you take a deposit, you need a way to check the condition of the room and contents when the lodger leaves against the condition they were in when he moved in (see Day 21). This is where inventories come in.
An inventory is a detailed list of all the contents of a property, including details of its condition. For a lodger situation it is probably a bit ‘over the top’ to prepare an inventory of the whole house or flat (or such parts of it as the lodger has access to). However, it is a good idea to have an inventory for the lodgers own room.
If you decide to do an inventory, you need to make a list of all (and I mean all) the contents of the room. This includes things such as
- all furniture,
- curtains,
- carpet/rugs
- duvets and pillows,
- any electrical items (e.g. bedside lamp),
- pictures,
- light shades, etc
Many inventories also include details of immovable things such as
- walls,
- doors,
- window frames
- light fittings, etc.
You should say a bit about each item, such as ‘good condition’, ‘new’, or ‘scratch on right-hand drawer’. You can also take photographs (or even a video), but use these as well as, rather than instead of, a written record. Keep receipts for all items purchased or repaired, just in case.
When the lodger comes to sign the lodger agreement (Day 15), you should show him around his room and check the inventory with him. He will need to agree it – if you spot anything not on it (another scratch perhaps) make sure this gets written in. Then you and the lodger need to sign the inventory (one copy each), to confirm that it is agreed by you both. It should then be attached to the lodger agreement (one for each of you).
If you use photos, these should also be signed and dated (to prove that they are not pictures created at a later date), with copies for each of you, and also kept with the paper-work. Be careful with photos, if you use them. Judges and arbitrators often say that they are useless, as they are frequently unclear, out of focus, with nothing to show the scale. A picture of a scratch on its own could be anywhere.
As someone that has a Tenancy with the company running owning my flat and my lodgers having given me a deposit, that I do NOT have to have this kept in a government authorised deposit scheme.
Deposits taken from lodgers do not have to be protected. The tenancy deposit regulations only apply to deposits taken from tenants under assured shorthold tenancies.
Hi
I take in lodgers to help me with my rents I have an agreement that we both sign, when the lodger moves in. accordingly they pay me a deposit that is refunded when they move out and a month’s rent in advance. I have not secored their deposits in any scheme as they are lodgers, but the deposit and the fact that it will be refunded is mentioned in the lodger agreement and i also give them a receipt for deposit. I have a relative of a lodger threatening me saying he wants the deposit to be secured in a scheme or else he wont pay the deposit and says i cant ask the lodger to move out citing tenancy protection from eviction. No use talking to him coz he wont listen. Is there something in writing to show him that i dont need to secure the lodger’s deposit in a scheme?
There is this blog. And my book: http://lodgerlandlord.co.uk.gridhosted.co.uk/2010/02/22/my-book-the-quick-guide-to-taking-in-a-lodger/
Hi Tessa
I am a Lodge Landlord. My lodger has given notice as her course is ending. Whilst viewing the room with prospective lodgers I noticed water marks on the sideboard covered with paper (these peering from underneath the paper). I want to raise the issue with her – should I do this whilst she is still here or after she has left, as the lodger agreement states that the room will be check and deposit forwarded after leaving. An inventory was not completed.
Look forward to hearing from you.
Patricia
Its really up to you, there are no rules laid down in tablets of stone about this sort of thing. My feeling is that it would be best to check the room over with her shortly before she goes and raise the issue then.
Hi Tessa
My lodger is leaving on Saturday.
A few months ago she started a fire in the kitchen which has melted the buttons on the oven and burned the doormat by the door and outside the door as the tray of nuts that started the fire was chucked out of the door.
Dhe has agreed to replace the buttons and I asked her to replace the doormats as well and to clean the oven from all residue the fire left.
I gave her a choice to replace clean things or I shall get quotes for all the above and she could pay or I can deduct it from her deposit.
Now she is being difficult and whats a solicitor’s notice for all the above which is totally ridiculous, I think.
Am I being unreasonable or have I got reasonable grounds to make her pay for the damage.
I would not like to be unreasonable with her but at the same time I don’t want to have to suffer finacial loss because of her damage.
look forward to hearing from you.
Gyongyi
@Gyongyi Makkos If she caused the damage then she should pay for putting it right. Provided the sums you are claiming are reasonable.
Hi Tessa,
I live with my lodgers and there is some damage to floor tiles in the kitchen which they are denying were them. I want to take the cost out of their deposit – am i okay to do that? Also i have repaired other things that they have broken and not me at the time the damage was made but haven’t kept the receipts. Am i legally obliged to give them proof of the costs?
Thanks
@Anon If you are going to make a deduction from the deposit you ought to have a receipt to back it up.
However if the lodger is denying that it was them, that is not good. Maybe it would be better to ask them to leave and get a new lodger who is less destructive (or more honest about it if they break things).