Ending a tenancy agreement or managing the end of tenancy process needn’t be a headache for landlords. It is however very important to get it right. There are procedures and laws in place to ensure you’re doing everything fairly and within reason. So before you begin to feel as if you’re drowning in regulations and rules, here’s a simple guide to the process.
First thing’s first, you’re going to have to give your tenants some notice and often some information and preliminary warnings. Everything depends on the type of tenancy agreement and its specific terms. Get your contract out, give it a read and see what’s most appropriate for you to handle the end of tenancy process smoothly.
Assured Shorthold Tenancies
In some assured shorthold tenancies, you don’t need to give your tenant a reason for taking your property back. For this to be the case, you must first meet the following criteria:
- The deposit is protected in a deposit protection scheme
- You give your tenants 2 months’ written notice
- The tenancy agreement ends at least 6 months after the original tenancy began
- The agreement is a periodic tenancy. Alternatively, you can do this with a fixed term tenancy as long as the fixed term has ended
Ending a Fixed Term Tenancy
Okay we get it – you’re finding out how to end a tenancy agreement because you’ve got a reason. We’re guessing this reason concerns your tenants themselves. Maybe they’re in arrears and it’s putting you under financial burden? Or maybe you’ve heard reports that they’re selling drugs from your property and you want them out? Both completely acceptable reasons for wanting them gone. Unfortunately, it’s not that easy – even if they’ve broken rules of the tenancy agreement! Your reason for wanting possession whilst the fixed term is still in effect must meet the specifications set out in the Housing Act 1988. The notice period you have to give will vary from reason to reason. More information on this can be found here.
Assured Tenancies
To regain possession of an Assured Tenancy at the end of tenancy, you must follow the Housing Act 1988 and use an applicable reason.
Excluded Tenancies or Licences
An excluded tenancy or licence is usually found when you share a room with a lodger. The rules for regaining possession in these instances are less strenuous. You must give ‘reasonable notice’. The term itself is slightly ambiguous though it’s recommended that you give the length of the rental payment period. For example if you collect payment every month, a month’s notice is considered reasonable. You do not usually need to give notice in writing for this type of agreement.
Non-Excluded Tenancy or Licence
The agreement can be ended at any time. You must give a written notice to quit. The notice period is usually 4 weeks unless otherwise stated in the tenancy agreement.
Break Clause
Most tenancy agreements will include a break clause. This means that after a specific amount of time has passed, either the landlord or the tenant can serve notice to quit. Sometimes contracts feature a tenant-only break clause though this is uncommon and not recommended. Some break clauses will be unconditional while some rely on conditions such as the rent being up-to-date etc. The landlord does not have right to possession of the property throughout the first period until the break clause is met.
What if the Tenant Doesn’t Leave the Property?
Whatever you do, don’t force your tenant out your property – that’s illegal! If the notice period’s up and your tenants refuse to budge, it’s time to start the process of eviction through the courts. This is a crucial step in ensuring a lawful end of tenancy.
Ending a tenancy agreement can be a stressful time. Take the strain of inventory management off your plate with No Letting Go’s Inventory services. Find out more information here.
Becoming a landlord isn’t easy. It’s not a career choice that should be made without genuine thought and consideration. Many people become landlords to capitalise on solvency or as an investment for the future. If you’re considering becoming a landlord at some point, here are the 5 things you need to know first.
1. There are rules which you must follow
This is an absolute must. When you become a landlord, it’s imperative that you understand what rules and laws you must follow. It’s also important to scratch up on your rights and the rights of your tenants. Ask yourself the following:
- Do you know what you can and cannot ask when interviewing potential tenants?
- Do you know how to handle a security deposit?
- Do you know what your responsibilities are for property upkeep?
- Do you know how to go about evicting a problem tenant
As a landlord, there’s many more questions you’ll find yourself asking. It’s imperative to know where your position is in the eyes of the law.
2. Being a landlord isn’t a normal job
Being a landlord isn’t a 9 to 5 job. You may be you own boss and you may enjoy your independence. This doesn’t mean your working day isn’t altered and changed by others. At any moment, a tenant can call you with a major issue and no matter what, it’s your responsibility to resolve that issue. The severity obviously affects the time frame you can take to respond. If there’s a major issue which needs to be resolved immediately, it’s up to you to deal with it or call in someone who can. Your days will be unstructured and spontaneous. Be prepared for a tenant’s call at the most inconvenient of moments.
3. Your job title goes further than just ‘landlord’
The best landlords do far more than that which naturally falls within the remit of the job title. In fact, you role will go far more than you could initially expect. Here are a few professions that your time as a landlord could prepare you for:
- A lettings agent – this one’s pretty obvious. If you’re a private landlord, you’ll find yourself doing all the jobs of a lettings agent.
- Salesman/woman – there’ll come a time when showing potential tenants around your property will seem more like a sales pitch than a viewing.
- Negotiator – okay so this one is very similar to the salesperson. There will come a point when tenants will attempt to negotiate with you. Be firm but fair.
- Debt Collector – this one’s pretty obvious too. Is someone not paying their rent? You need to know how to deal with this.
- Handyman – your tenant needs something fixed and you’d rather do it yourself than pay someone external. Better start learning how.
- Therapist – Your tenant’s just broken up with their long term partner, lost their job and can’t make the rent payments. Be prepared for a teary phone call coming your way.
- Detective – Someone’s applied to rent your property. Time to do some digging and detective work. Referencing, credit checks and general questioning should give you enough evidence about your potential new tenant’s renting habits.
4. Expect a learning curve
When you’re a landlord, no matter how much research you’ve done, you’ll always be surprised. Expect small issues to linger for a while and then expect major problems to suddenly dominate much of your waking life. Thankfully, the longer you do this job, the more likely you are to recognise potential complications. You’ll also learn after a few bad tenants, which warning flags you should look out for and what circumstances breed disaster.
5. Hard work is rewarding
Whatever your own personal goals may be, being a landlord can help you achieve them. As a landlord, you’ll get freedom, money and power. If you make enough, you can even grow your own mini empire of properties. Put the hard work in and benefit from the rewards further down the line.
If you’re a landlord concerned about the headache of inventories, find out how No Letting Go’s services can remove the stress from the process.
So the issue all landlords despise has happened. A tenant has moved out but left some of their belongings in your property. You’re now unsure what to do next. From this moment onwards, your actions have to follow law and must stand up to scrutiny – the tenant can still make a claim against you for damages. Follow our advice below and the situation will hopefully be resolved with ease.
A tenant has moved out but left their belongings, what should I do?
It’s Still the Tenant’s Property
As soon as you see the items left behind, you’ll have a pretty good idea of whether it was left as rubbish or simply forgotten. DO NOT be tempted to throw any of this away, sell it or neglect the issue. Everything still legally belongs to the tenant and they retain rightful ownership – even after they’ve left it behind. If you throw away any items and they hold value, you’ll be liable for damages. There is however, a silver lining to this terribly frustrating situation. You may be able to charge the tenant for the cost of clearing your property and possibly any storage afterwards. Be sure you follow the right procedures for these.
The Torts (Interference with Goods) Act 1977
Thankfully, you do have some legal backing in this situation. The Torts (Interference with Goods) Act 1977 allows you to dispose of any belongings left behind, on the condition that you follow a specific course of action first.
What You Need To Do
A written letter is the best place to start. We recommend doing this via recorded delivery so you can guarantee the tenant receives it. Explain in your letter that you wish to dispose/sell the items. You must inform them on how to contact you to retrieve them. As well as this, you should include a detailed description of the items, where they are being stored and when you’ll be selling/disposing of them. Be sure to allow the tenant enough time to take preventative measures. Remember, this could all be a genuine mistake. You should give your tenant the chance to rectify the situation. Keep a copy of the letter in your records.
What If I Don’t Have the Tenant’s New Address?
Don’t worry, a resolution can still be found. You need to be able to prove that you’ve made a reasonable attempt to get in touch with the tenant. We recommend using a tracing agent to track down the tenant’s address. These companies usually won’t charge you if they can’t find the individual’s location. Keep the report that states they can’t find your tenant and you’re good to go ahead with the disposal.
Decided to Sell the Items?
You’ve followed the strict procedure, you’re now ready to sell the items and pocket the cash. Unfortunately the money’s not actually yours to keep, it belongs to the tenant. This is infuriating, we know. Thankfully, if there have been any charges or costs incurred throughout the process, then you’re good to go ahead and reimburse yourself.
Want more rental advice? Give the Department for Communities and Local Government’s ‘How to Rent’ guide a read.
With our inventory services, claiming from your tenant’s deposit for this could be easily achieved and resolved. These issues needn’t be such a strain. Find out more information here.
It has been reported today that Countrywide Group estate agency is to close around 60 of its UK offices in the coming weeks.
In a comment to Estate Agent Today, Countrywide said: “Following consultation with colleagues, we have made the decision to close 59 branches within the retail arm of our business. This is part of our ongoing ‘Building our Future’ strategy.”
The company go on to cite that this is a strategic decision to ensure the right people are in the right places to meet customer needs. Countrywide have clearly stated they want to avoid redundancies wherever possible though it can be deduced that there’ll be a loss of staff following such a drastic change to the business.
These closures are the crescendo to what has been a year of speculation and concern surrounding the future of some brands and offices. Chief Executive of Countrywide Group, Alison Platt, brought speculation to the forefront of workers’ minds in October 2015 when she succinctly told investors the company was moving in the direction of “fewer, stronger brands”.
The leaked list of closures sees a dramatic loss of offices across England, Scotland and Wales with the most damage being seen across the Midlands and Southern England. Below you can find a list of offices reported to be closing:
South Coast:
Palmer Snell in Lyme Regis.
Yorkshire:
Bridgfords in Bingley, and Ripon.
Manchester and Lancashire:
Bridgfords in Hale, and Bramhall.
South Central:
Mann in Bitterne, Cosham, Godalming, Haslemere and Hythe,
Gascoigne-Pees in Grayshott,
Watson Bull & Porter in Shanklin.
South East:
Geering & Collyer in Canterbury and Folkestone,
King & Chasemore in Eastbourne, Lancing and Littlehampton,
Freeman Forman in Mayfield.
Midlands North:
Ian Peat in Bingham,
Bairstow Eves in Derby,
R A Bennett in Solihull,
Dixons in Tamworth.
South West:
Stratton Creber in Mawnan Smith,
Fulfords in Shaldon, Topsham and Torquay.
Wales and West:
Entwistle Green in Crewe, Frodsham and Prenton,
Beresford Adams in Denbigh and Flint.
Midlands East:
Abbotts in Billericay, Clacton, Dedham, Felixstowe, Haverhill, Leigh-on-Sea, Sudbury, Wickford and Witham,
Bairstow Eves in Halstead, Ipswich, Leigh-On-Sea and Tiptree.
Midlands Central:
Taylors in Kettering and Olney,
Wilson peacock in Newport Pagnell.
Scotland and NE:
Countrywide in Ayr.
Midlands West:
R A Bennett in Bourton-on-the-Water, Chipping Campden, Cirencester, Stow-On-The-Wold, Thornbury, Wootton-Under-Edge and Yate,
Taylors in Churchdown, Evesham, Portishead, Shirehampton, Swindon West and Warndon.
Are you reading this, concerned about your future within the Countrywide Group? Is your office set to close down? A No Letting Go franchise is a lucrative business opportunity whoever you are and whatever background you come from. The inventory market is exciting and it’s growing! Getting involved in this market is not only fun but rewarding too. We’re looking for people who strive for success to join our established, market leading inventory services. Find out more about our franchise opportunities here.
Being a landlord is a very unique line of work. You see how people behave behind closed doors. There’s a lot you can tell about a person by the way they conduct themselves during and how they leave a tenancy. Sometimes tenants can take lease of your property and really care for it. Other times, landlords are not so lucky. So who are the worst kind of tenants? We decided to take a look and offer some wisdom that’ll hopefully help you from taking in any undesirable individuals.
We’ll start by explaining that we aren’t going to write about any horror stories. There are some really nasty experiences that have been spoken about online. In fact, if you’re interested read this r/AskReddit thread where landlords explain their worst tenant stories. In this article, we’ll look closer at the generalised tenant groups that should be avoided if you want an easy life. We must warn you, these are generalisations and stereotypes. You should scrutinise your prospective tenants fully before allowing them to move in.
The Party Animal
If you’re a landlord in a student area, you’ve probably come across this type of tenant. This individual just wants to party all the time. This can even be during the week, when neighbours have to wake up early for work. Sometimes the party animal will bring recreational drugs into your property which can pose a big issue. The loud music, frequent visits from friends and regular mess can often be a real pain for landlords. It’s difficult to tell the party animal tenant from others but students regularly fall into this demographic.
The Animal Lovers
It’s not unusual for a prospective tenant to ask whether pets are allowed in the property. In fact, this is quite a responsible question. It is unfortunately a common occurrence for tenants to ignore a landlord’s response. One of the most frustrating things for a landlord is to enter the property after a tenant has left to find it smelling of animals. Often the people who ignore a landlord’s wish for no pets are those who do not necessarily take much care of their animals. This can result in a fierce smell, nasty stains and lots of hair.
The Extended Family
This is a really tough one. We’ve heard of situations before when a couple view a property, sign the rental agreement but convert your one bedroom flat into a living area for them and their entire family. The issues this causes go far beyond what you may initially expect. Wear and tear becomes far more apparent, the property smells and often there’s a general lack of respect for your investment. Sometimes there is a conversion process which means your living room space is no longer a living room. IF your property is furnished, this can be particularly costly.
The Wannabee Lawyers
This can be one of the most frustrating tenants to come up against. This tenant is usually fresh out of university or only recently in professional employment. They have an ingrained opinion that landlords don’t play by the rules. They will scrutinise every move you make to ensure it’s by the book. They will talk to you as if you don’t know the law or your own profession. Once they’ve moved out, if you find a genuine reason to detract from their deposit, they’ll refuse and enter into legal proceedings. These will be both costly and time consuming.
The Chronic Late Payers
You never truly know whether you’ll get a chronic late payer. These tenants disguise themselves well. Sometimes late payments can develop for genuine and honest reasons, sometimes tenants can just try their luck. You must look at things from a business perspective, this is your livelihood after all. When arrears mount up and it’s affecting your everyday life, you need to take action.
If you’re a landlord and have encountered nasty deposit disputes before you’ll know how disruptive it can be. Take a look at No Letting Go’s inventory services to see how we can remove this stress from the lettings process.
Being a landlord isn’t easy. There can be some great highs to the job but some real lows too. Landlords are often hit with unnecessary and avoidable costs. It doesn’t have to be this way. We’ve put together a few insightful tips to help you save money and keep costs down.
Choose Carefully
This is critical to landlords. In this line of work, there’ll be many important choices to make. If you make the right decision, you’ll keep costs down. If your judgement isn’t spot on, you could face financial burden. The two most important decisions to make concern your property and your tenant.
If you haven’t bought your property yet, consider the location carefully. Do as much research as you can. A few metres in the right direction and you’ll be quids-in! Think about amenities too. Where’s the local school? How far is the nearest supermarket? Put yourself in the shoes of the prospective tenant and ask the questions they would.
Now think about the tenant. You should only take on great tenants. This sounds simple but the reality is quite the opposite. As a landlord you never fully know who you’re dealing with. It doesn’t matter where you find your tenants, there’s always a risk. Ideally your tenant will pay on time, be respectful and keep the property in good shape. Be sure to properly check and reference your tenants. Keep an eye out for suspicious behaviour or circumstances.
If you have issues with tenants speak to Landlord Action they deal with problem tenants, landlord and tenants disputes, squatters, rental debt collection and other housing matters in England and Wales.
Shop Around for Your Agency
Don’t be tempted to take the easy option. Shop around and find the right agency for you. Do you need property management services? Think about this carefully. Some landlords prefer the agent to deal with everything whereas others just use them to find new tenants. Alternatively, you could opt to do it all yourself. This option is growing in popularity. If you choose this, make sure you understand the correct procedures for tenant referencing.
Insurance
Alike your agency, shop around for insurance. Ensure you know what each plan covers as well as what you’ll pay. Never let your building insurance run out. If there’s a fire or incident and your property’s uninhabitable, you may still be liable to pay the mortgage. Consider taking out a Landlord Rent Guarantee insurance too. This is especially important if dealing with new tenants. This policy is relatively cheap and will safeguard your rent if a tenant falls into arrears.
Cut Void Periods
As a landlord, you should avoid lengthy void periods at all costs. These pose a serious financial risk and could lead to a few sleepless nights. If you find yourself approaching a void period, think about how you’re marketing the property. Consider the price of rent, its visibility online, how it’s presented and your availability for viewings.
Maintenance: Tradespeople Vs DIY
So you need some maintenance done? When bringing in tradespeople, it’s important to think about costs as well as reviews. Don’t go for the first you find and don’t necessarily go for the cheapest. You need the job to be done properly, as well as cheaply. If you’re considering a DIY fix, make sure you do a good job. You don’t want to be revisiting the same issue again in a few months. Sometimes the cost of bringing in a tradesperson is better than the time expenditure of doing it yourself.
Furnishings
Furnishing your property is a great way of adding value. Check out all options for this. Sometimes bulk buying furniture from retailers will get you a better deal. Why not look for second hand options? This can add a unique character to your property but also save you money. Take a look at auctions as well as sites like Freecycle, Gumtree, Ebay and Amazon.
Review Your Mortgage and Hire an Accountant
A landlord’s main expense is their mortgage. It’s good practice to regularly review this and ensure you’re getting the best deal. This can mean saving money immediately. Search around and see if there’s a better deal out there. If you’ve got extra money hanging around, consider making an additional payment on your mortgage. This can seriously lower your interest rates.
It’s said that a good accountant will save you more than their fee. For a landlord, hiring an accountant should be a serious consideration. There are plenty of legal tax exemptions and breaks that you could qualify for. Speak to an accountant, see how they can help. Ask them about the possibility of off-setting your expenses against your tax bill.
Get Your Inventory Right
Your property is your livelihood. As a landlord you have the right to deduct money from a tenant’s deposit if your property is damaged. With recent changes to the law, it can be more difficult than ever to do this – even if you’re in the right. If you haven’t got your inventory spot on, you’ve got no chance of recuperating any costs. By using an impartial and unbiased service like ours, the decision is taken out of your hands. We’ll undertake a comprehensive report of your property in a fair and unbiased way. If you’re sick of deposit disputes with tenants or simply want peace of mind, get in touch with us here.
This week Paul Shamplina, founder of Landlord Action and celebrity in the field of property, took to the Direct Line for Business blog to discuss the importance of getting your property inventory right. In this piece Paul discusses the need for property inventory services and recommends No Letting Go, explaining that the cost of the package is easily outweighed by savings and benefits. Paul also shed some light on the need for quality inventories and outlines what a landlord really ought to know. We’ve put together a few of his key points here for you.
Paul Shamplina’s Views on Property Inventory Services
Paul Shamplina writes about how landlords can ‘save a great deal of time and hassle’ by using property inventory services like No Letting Go. The benefits put forward by Paul centre upon the professional expertise and advice as well as the protection that comes with the impartiality of our service. Paul does rightly highlight the need for landlords to be selective in their choice of services, only opting for companies that are a member of The Association of Independent Inventory Clerks or The Association of Professional Inventory Providers. Paul ends his discussion of the topic with a strong recommendation for No Letting Go (a member of The Association of Professional Inventory Providers).
65% of Landlords Do Their Own Inventories
In the video accompanying Paul’s blog, he becomes animated at the mentioning of this statistic. As a landlord carrying out your own inventory you are ‘exposed to more risk of a deposit dispute’. Paul attributes this to most landlords not putting detailed, correct or required information on the inventory. With an impartial service, this is not a problem that would be encountered.
Additionally, Paul underscores the importance of landlord insurance as a critical safeguard, which, when coupled with a professional inventory service, further reduces the likelihood of financial losses arising from property damage, legal disputes, or unpaid rent, thereby securing the landlord’s investment with an added layer of protection.
Property Inventories on Unfurnished Properties
Paul’s article highlights a topic that we’ve encountered many times. Some landlords are led to believe that an inventory is only needed for furnished properties. Paul reiterates that this is not the right view to take. Decoration and condition of the floors, walls and garden should all be noted in the inventory. Mould and discolouration can appear very quickly if your property isn’t being maintained properly, the inventory will detail this clearly. If you do not include an inventory with your property, irrelevant of furnishings, you are opening yourself up to the potential of losing any deposit costs that you may wish to hold back.
Mid-Term Inspection
Paul Shamplina goes on to highlight the importance of a mid-term property inspection. This visit is the ideal opportunity for you, as a landlord, to check that the property is being looked after in the correct way. The best time to do this is after at least three months of the tenant being in the property, though this is at your discretion. Don’t forget that by law you are required to give 24 hours written notice of any inspection. We highly recommend that you are flexible with your approach to inspections, this will help take the intimidation factor away from the process.
If you need help with difficult tenants visit Landlord Action.
Are you looking to take away the stress and hassle of writing your own inventory? Get in touch to find out more about our property inventory services.
Viewing a property can be exciting. Quite often it’s the most enjoyable part of the whole rental process. It’s very easy to get carried away by the idea of the next property being perfect while neglecting to check the things that really matter. We’ve put together a list of the top considerations to make when viewing a property, so you won’t forget to check something that could come back to haunt you.
Outside the Property
When you first get to your viewing, take a good long look at the outside of the building. Be sure to think about the following points:
- What condition is the outside of the property in? Is there any structural damage that could cause issues further down the line?
- What is the condition of other properties around?
- How secure is the property? Are the locks of a satisfactory quality?
- If you’re viewing a flat, what’s the entry system like?
- Is there a burglar alarm?
- Is there a garden? Who takes responsibility for the upkeep?
- What is the parking like?
Inside the Property
When you’re greeted by the lettings agent, be sure to take the viewing at your own pace. Ask questions, be thorough and don’t be persuaded by the smell of coffee or great interior design. When in doubt, consider the following:
- Are there any signs of damp? Any flaking paint? Any evidence of insect or vermin infestation?
- How effective is the heating? Do all radiators work?
- What is the state of insulation? Any double glazing?
- Can you see any obvious repairs that you would like carried out before you move in? Be sure the landlord puts any promises of repair work in writing for you.
- How much storage space is there? Can you imagine yourself fitting all your belongings into the storage available?
- What comes with the property? Is it furnished, part-furnished or unfurnished? Are the white goods included?
- What state are the kitchen cupboards and work surfaces in?
- Run a tap, check how hot the water is. This will give you an idea of the condition of the boiler and water pressure.
- What are the rules on decoration? Can you redecorate and give the place your own personal touch?
- What is the phone signal like? Do you really want to rent a property where you can’t be contacted whilst at home?
- Where are the electrical points? Can you spot any loose or dangerous wiring?
- Any signs of condensation on the windows? This could be a sign of poor insulation or cracking sealant. Check the sealant in the bathroom too, is it intact?
Local Area
Take a walk to the shops, keep your eyes open and take in the neighbourhood. Be sure to think about the following:
- What is the neighbourhood like? Would you feel safe walking alone after dark
- Are there amenities in close proximity to the property?
- What transport links are there?
- What is the volume of noise like? Do any train lines run close to the building? Any busy roads nearby? Any late night pubs that could cause a disturbance?
Other Considerations
- Are the burglar, smoke and carbon monoxide alarms in working order?
- Are all locks, including windows, functioning correctly?
- What does your rental payment cover? Who will take responsibility for bills and council tax?
- How much is the deposit? Where will this deposit be kept?
No matter how much you want a property to be perfect, listen to your gut. If the property isn’t right, then it simply isn’t for you. Don’t force it and never run into a decision like this without full consideration and thought. Once you’ve found your dream rental and approach the moving in process, be sure to carry out a full inventory. Whether you’re a tenant, landlord or lettings agent, take the stress out of the inventory process with No Letting Go. Find out more about our award winning services here.
We are very pleased to announce that we have been accredited with the Bronze award for Supplier of the Year in The Times and Sunday Times Lettings Agency of the Year 2016 Awards. This is an honour as we were not only competing with inventory businesses but with all types of suppliers including compliance, maintenance and software companies.
This award is the only one of its kind which focuses solely on Lettings. We have been commended in this category for offering an exceptional standard of inventories and reports to both agents and property management companies alike. Those who carry out our reports have been hailed as ‘highly qualified and reliable’ while the reports themselves are praised for their capability of being able to endure extensive inspection.
Stopping Disputes at Their Source
The rate of disputes over our reports is virtually non-existent. This is a direct result of our training academy which has also been applauded for its proactive approach to dismantling the opportunity for disputes at their source. Our training academy offers residential courses on inventory management and a mentoring scheme which has been set up by our highly experienced Training Director.
Don’t just take our word for it
Client feedback has proven that the vast majority of our clients agree with all statements. We have scored exceptionally well on referrals and our ability to understand what our clients want to achieve for their landlords and tenants.
If you want to find out for yourself why our service is so highly revered, don’t hesitate to get into contact with us here.
The subject of lodger deposits has always been one of a great many grey areas for both landlords and tenants.
Given the fact that every penny of the deposit money technically belongs to the tenant or lodger, and that deposit disputes can take time and money, it is in everyone’s best interest to ensure both sides fully understand their rights and obligations.
From carrying out a comprehensive check-in inventory at move in, to knowing your rights as a landlord, letting agent or lodger – we explore how to negotiate the return of the lodger deposit.
What is the Difference Between a Lodger and a Tenant?
The difference between a lodger and a tenant is:
- A tenant pays rent and lives in a property you own but do not live in
- A lodger lives in the same property as you and pays rent
Negotiating the return of a deposit if you are a lodger, living in student halls or living at the same property as your landlord is a slightly different process to that of the standard rental property tenant.
The most important difference in regard to rights, is that landlords and letting agents are not required to place a lodger deposit into a deposit protection scheme.
In comparison, lodger agreements are called licenses rather than tenancy agreements and landlords are legally permitted to give a reasonable notice period anywhere from 14 days to 28 days. The time period should be set out in the original license and agreed upon by both landlord and lodger.
How Much Is A Deposit?
A standard lodger’s deposit tends to be one month’s rent. However, this isn’t fixed and some landlords and letting agents demand up to 6 weeks.
Negotiating the Return of a Lodger Deposit: First Steps
When the time comes to begin negotiating the return of a deposit, the first step is for the lodger to request the return in writing. Lodgers should write directly to the landlord and ask them to return the deposit, being sure to keep copies of all correspondence in both directions. You may be required to produce evidence of such requests at a later time, so it’s a good idea to hold onto them.
The best time to return the deposit to a former lodger is after they have moved out with their possessions and you have checked the room thoroughly for any damage.
Lodger Deposit Protection
What’s different about this particular scenario is the way in which lodgers are not considered short-hold tenants, which means the landlord is not under any legal requirement to protect deposits using an appropriate tenancy deposit scheme. This doesn’t necessarily affect lodger’s actual rights when it comes to the deposit in general but can affect the negotiation and deposit return processes.
Establish a Deadline
Most professional landlord inventory services in the UK agree that problems generally occur when lodgers are not direct and/or demanding enough when it comes to requesting what is rightfully theirs. If the deposit should have been returned but has not, the best course of action is to begin with a written request for its immediate return with a specified deadline – something like two weeks.
Lodgers can also take the opportunity to ask in the letter why the deposit has not yet been refunded, along with whether or not they can expect any deductions to be made and the respective reasons.
If unsure how to go about this, there are plenty of useful templates available online.
Lodger Deposit Disputes and Deductions
As a lodger landlord, you are required to clearly list and explain any deductions to be taken from the deposit. If you fully agree with your lodger that the deductions are fair, you can confirm your agreement and arrange for the remaining deposit to be refunded.
If deductions are made, though no breakdown or explanation is provided, lodgers can request that this is done urgently. And if there are any deductions you do not agree with, you may need to dispute the deposit.
What are Reasonable Deductions?
Landlords and letting agents can deduct money from the lodger’s deposit if the lodger has any outstanding rent or if they have caused any damage to their rented living space. Damage above the level of fair wear and tear could include damage or stains on furniture or furnishings or missing items from the inventory.
Lodger Agreement Deposit Return: Court Action
From time to time, disputes cannot be resolved through talking alone and you may find that your lodger takes court action. Lodgers can also claim online through the Courts & Tribunals Service.
For a claim to be successful, it will need plenty of documented evidence of attempts to recover the deposit manually, as well as evidence in regard to the condition of the rented space at check-out.
Landlords do have the option of making an offer before the case proceeds any further.
Don’t Skip the Inventory Report
One way to ensure the return of the lodger deposit goes smoothly, without resorting to the courts is to have a detailed inventory report in place.
A professional inventory report can;
- Provide evidence of the condition of the room or property at the start and end of the lodging period
- Provide evidence of the condition of furniture and furnishings
- Provide lodgers with check-out information to minimise disputes
If you’re a resident landlord or a letting agent looking to take the stress out of the inventory process, find out how No Letting Go can help with our wide range of property inventory services.