Returning deposit to licensee who wants to move out with no notice

M

Mothergoose

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What are the rules in relation to licensee's. My licensee wants to move out this week with no notice. The original agreement was one month's notice, and rent is paid monthly. Should I return the full deposit. It will cost me to re-advertise the room, and it may take 2/3 weeks to get someone. What are my obligations here.
 
Assuming your licensee agreement is compliant I would hold back part or all of the deposit to cover notice.
 
Forget the cost of re-advertising, you'd have to pay that anyway. Assuming the one month notice agreement is in writing, I would retain a proportion of the deposit money for "rent arrears" - for example if their last rental payment covers them until the end of Jan, according to your agreement you are owed 3 weeks of the month's notice rent - or 21/28 of the deposit. If rent covers them until 20 Feb, then you would retain only 4/28 of the deposit. I wouldn't retain more of it than is strictly fair.
 
I think it's reasonable for you to withhold the amount for however long the room is vacant, or one month, whichever is less.

You can't reasonably retain a full month if you find someone else after two weeks, just what you are out of pocket for.

Advertising costs are yours to bear, not your licensee's.
 
Ask the departing licensee to help find a replacement, they will have an incentive to minimise the time it is vacant and you will refund the appropriate proportion of the month.
 
Thanks. I was thinking of returning half the deposit as the property will likely be vacant for 2 weeks at least. That is the time between putting up the advert and getting a suitable tenant- doing the viewings, refs etc. I also live on this money as I only work part-time hours during to health issues, so a decision to move out suddenly is wrote impactful. The licensee is threatening Small Claims Court - what is this process like. I have never been involved in it previously.
 
Let them go to small claims and waste their time. If you have a signed agreement saying that they should give 1 months notice, then you are covered.
You are being reasonable by refunding part of it, but are well within your rights to retain it all.
 
I assume you have a signed copy of the lease and it is clearly stated that the deposit would be retained if no notice is given etc. If you have all that I would let them go to the small claims court. If you have that signed lease have you given them a copy and outlined that this is what they signed up to? It might be enough to send them on their way.....
 
If they were good tenants (licencees) I would return full deposit just to be sound
 
Keep it for as long as it takes you to find a new tenant and put them in place. It happened me several times. 3 weeks is reasonable. You could justify the four if its in writing. I always put it in a contract. I wouldn't be worried about small claims court if its in black and white.
 
There's not great cover for licensees, but its a sellers market, so I wouldn't make a huge fuss. Let the person move out, and return the deposit after a week or two. Your cost of re-advertising isn't their problem. I'm assuming they are moving out just before the next months rent is due, so I don't think you really have a great case. The deposit is to cover the cost of damage or "once no rent arrears, bills, taxes or charges are due or damage beyond normal wear and tear has occurred". Its supposed to cover cost of damage or unpaid bills, and its considered the tenants property, not yours. You'll get a new tenant in days anyway so there is no actual loss on your part that would validate withholding rent.
 
That's not the purpose of a deposit - see here
 
lff12 said:
That's not the purpose of a deposit - see here
Click to expand...

Reasons why a security deposit may be withheld​

  • If a tenant provides insufficient notice of their termination of the tenancy, or they terminate a fixed term tenancy before the end of the agreed term.

Seems clear cut no?
 
If this is a house share arrangement; the 'licensee' has the same status as a guest.
give the money back so long as the room/ property is left in good condition. it's not as if it's hard to find a new house sharer.
 
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