Renting.

[themalster]

Hi guys.

I am looking at renting my house out and the woman who wants to rent it is on benefits.

She has said that she can't afford a deposit on top of the months rent for when she moves in.

Is it necessary for her to give a deposit?

Obviously, if she doesn't then she can't claim any money back at the end of her tenancy.

I'm new to this so just wanted some advice

Thank you in advance

[Zacs-Master]

You also need a bond, which is usually 2 months rent, to cover any damage when they leave. I would steer well clear.

[sherrardk]

What if she causes any damage? Normally, this would be paid for out of the deposit. If she is on benefits the Local Authority might give her a loan for the deposit. PS - well done for confiding renting to someone on benefits, a lot of people would not conside her a suitable tenant.

[arwyn]

You deduct payment for any damage from the deposit when she leaves and give her whats left..

[ummmm]

How long is the tenancy for? You could increase her monthly rent?

[Zacs-Master]

Deposit is different to a bond. A deposit covers you if they decide to leave without notice.

[themalster]

Thanks for the advice. Something didn't sit right so just wanted to know if she DID need one, legally.

[ChuckFickens]

"You also need a bond, which is usually 2 months rent"

Jeez..... where have you been renting from!

A deposit and the bond is normally combined and would be between 1 - 1.5 months rent in total.

[themalster]

The tenancy is for a year. She's coming round again on Saturday to check out the garage space so will mention that she needs a deposit...

[Zacs-Master]

Never rented in my life Chuck, just going by acquaintances experience.

[Zacs-Master]

Some good advice
http://www.direct.gov...ourProperty/DG_189124

[grasscarp]

I would not want to rent to someone who didnt even have enough money for a deposit. I remember when I rented out a house to some students and my daughter was also living in the house. They came downstairs with their belongings one day and told her they wanted their deposit back there and then. She said to them. You forget I am studying law and legally there is a necessity to give a period of reasonable notice when you leave a property. Coming downstairs and telling me you are leaving is not a period of reasonable notice. In the event, they did have to forfeit some deposit though I dont remember much as this is a long time ago. I was glad I had a deposit though as a previous landlord was later trying to track them down for money they still owed on a previous property.
Best not to get into a rental agreement without getting the conditions laid down and a deposit from whoever you let it to.

[themalster]

Thanks guys, you've all been helpful.

[granny grump]

If you still have a mortgage on the property themalstebly you will need to inform your mortgage provider to get 'Consent to Let' and your interest rate will probably increase. Some lenders will not give consent to let to students and people in receipt of benefits. You will also need to inform your insurance company

[themalster]

My insurance is due to run out at the end of the month (which is when i was looking at renting it out) so i figured i'd just get Landlord insurance and also building insurance.

[ladybirder]

And you will be getting her to sign a Shorthold Tenancy Agreement won't you? This is vital.

[granny grump]

Yes sorry I forgot to mention that

[themalster]

Pardon my ignorance, but my solicitor mate sent me a basic tenancy agreement. How do i know if it is a Shorthold Tenancy Agreement? It just says Tenancy Agreement at the top

[ladybirder]

Here's an example for you.

http://www.homes-for-...tenancy-agreement.htm

It mentions it in the first para here.

[Velvetee]

You need to have a Deposit in case something goes wrong. You now should place any Deposit from a tenant into a Tenant's Deposit Scheme.

If you want info on renting have a look at the ARLA website.

[jamesnan]

I would definitely not rent out to someone who did not have enough for the deposit. My daughter rented out her flat to a young lady, who seemed to be the perfect tenant - big mistake - she ended up disappearing with a lot of the items from the flat after she had been using the place almost as a brothel. She had loads of extra keys made and was giving them out to various other "ladies" and a print out of the phone bill showed many numbers who all seemed to have knowledge of the flat. The only way to go to get recompense was a) the deposit, and b) a small claims court case which daddy ended up paying for her before it ended in court, probably because he did not want the embarrassment of it being made public.