heebs Posted November 23, 2007 Report Share Posted November 23, 2007 hello all i have a couple of lodgers...i hold their deposit..but i am moving out and am going to rent out my room too...will i have to secure their deposits even though i am renting rooms in a houseshare to non related people all on separate contracts. dont want to do anything wrong as tenants seem to throw the deposit scheme at landlords even when it doesnt apply to them...so we need to be very clear on the rules...have googled alot but cant find anything on my specific situation. thanks in advance Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 23, 2007 Report Share Posted November 23, 2007 if you are resident LL then you do not need to issue an ast ......No ast ---No TDS.. S Link to comment Share on other sites More sharing options...
heebs Posted November 23, 2007 Author Report Share Posted November 23, 2007 if you are resident LL then you do not need to issue an ast ......No ast ---No TDS.. S i wont be resident anymore...but still renting rooms only...and not on a ast...just a tenancy agreement...will TDS apply to me??? Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 23, 2007 Report Share Posted November 23, 2007 If you create an ast then you MUST protect dep ..if you take one .. TDS WILL definately apply Also if you are renting room by room (on seperate ast) then you will be opertaing an HMO ...this will mean that you will be responsible for payment of Coucil Tax ...... S Link to comment Share on other sites More sharing options...
heebs Posted November 29, 2007 Author Report Share Posted November 29, 2007 If you create an ast then you MUST protect dep ..if you take one .. TDS WILL definately apply Also if you are renting room by room (on seperate ast) then you will be opertaing an HMO ...this will mean that you will be responsible for payment of Coucil Tax ...... S I though HMO only applied of 5 or more tenants...also..I am not intending to rent out the rooms on AST's///just continuing to use a tenancy agreement for letting a room in a shared dwelling... ...so...do I need to lodge deposits....must I take them on with ASTs...or do i have a choice.. thanks Link to comment Share on other sites More sharing options...
Matthew Posted November 29, 2007 Report Share Posted November 29, 2007 There are 2 types of HMO, The licensable ones and the ones which don't need a licence. Licence is required if property 3 or more stories and 5 or more unrelated people living there. An HMO is really just a property where there are unrelated property living in a place, and is very vague. But Rodent is right re the Council Tax. If you have seperate contracts per room, the council will deem you responsible. If you have a contract with a group for the whole house, then the tenants are responsible. The theory behind it is that with a joint tenancy agreement the whole household is responsible, so they will have to argue amongst themselves how it is paid, but ultimately only 1 payment will be made. If there are seperate contracts, each person is likely to want to pay their share & the council can't address the house as a whole & would end up having to have accounts for say 4 people = Likely to get very confusing and very time consuming. Again it is likely you will have to pay the energy bills too, otherwise I can't see them ever getting paid for so many reasons. I rent all my places on a room by room basis and have AST's for each one and included in the charge is 50 to 60 pounds per month for bills. Let me know if you have any questions, Regards, Mat. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 29, 2007 Report Share Posted November 29, 2007 I though HMO only applied of 5 or more tenants...also..I am not intending to rent out the rooms on AST's///just continuing to use a tenancy agreement for letting a room in a shared dwelling... ...so...do I need to lodge deposits....must I take them on with ASTs...or do i have a choice.. thanks What sort of "tenancy agreement" are you planning on using ? if you are using a "assured shorthold tenancy" which unless it is a "lodgers agreement "(you being resident..) or a fixed term assured T then you will HAVE to protect it .... Dep has nothing to do with HMO ...but you do have obligations re fire/smoke detection REGARDLESS of size and no of occupants...even in own home if you have lodgers .......there are far to many LL not aware of this ...if there is an "incident" LL will be the one for the high jump ...... So get in touch with your local council HMO team or Private sector housing guys ...they will do a risk assessment for you for free (certainly in Cardiff) ...... It is not worth the risk no to ... S Link to comment Share on other sites More sharing options...
heebs Posted November 29, 2007 Author Report Share Posted November 29, 2007 AAAAAARRRRRRRRRRRRRRRrrrrrrrrggggggggggggghhhhhhhhhhhhhhhhhh!!!!!!!!!!!!!111111 With due respect to all...maybe I didn't make myself clear.. 1. i am not concerned with bills...am paying..happy to continue 2. am moving out of the property..so not resident LL 3. am letting room by room to separate individuals..4 in total eventually once i let out my room MY MAIN QUESTION Must I assign AST to all room tenants ..or can i just continue with basic tenancy agreement...not ast's...does the law require me to assign AST...OR DO I HAVE A CHOICE Link to comment Share on other sites More sharing options...
Matthew Posted November 29, 2007 Report Share Posted November 29, 2007 Sorry :-) The more extra info the better though! Legally I don't know. What I do know is that all my mortgages state that Assured Shorthold Tenancy Agreements must be in place with tenants. Now you are not resident, it is a BTL mortgage, you will have to ensure they are happy with you no longer being resident. They could well charge you to change the mortgage to BTL(a few grand), but whatever they say I'm pretty sure they will say you need assured shorthold tenancy agreements in place. Also most lenders don't lend on the basis of individual agreements and as such may mean you would need them all signed on one AST if your lender doesn't lend on this basis, otherwise you will need to remortgage. I'm sure GPEL will be able to help on the legals, but for me the lender could well dictate how you play it in this case. Not exactly answering your question, but hey! Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 29, 2007 Report Share Posted November 29, 2007 MY MAIN QUESTION Must I assign AST to all room tenants ..or can i just continue with basic tenancy agreement...not ast's...does the law require me to assign AST...OR DO I HAVE A CHOICE If you do 4x single tenancy agreement (1 per person per room ) then you will be running an HMO (house in multiple ocupation) "a basic tenancy agreement"...IS an AST (assured shothold tenancy..agreement) ....unless your agreement specifically states that it is NOT then it is assumed and implied that IT IS...there are other agreements that can be used ....which 99% of LL DONT USE because you can have serious problems regaining possession ..... To confirm "a basic tenancy agreement" IS an AST and as such DEP MUST BE PROTECTED .. Please clerify what "agreement" you are using ..... If you "just make one up" then say it is not intended to be an AST then it will likely be as much use as second hand bog roll if you need to enforce any terms .. GPEL .....? Simon Link to comment Share on other sites More sharing options...
GPEL Posted November 29, 2007 Report Share Posted November 29, 2007 The way I see this is that if you move out of the house you are no longer a landlord-in-residence and the terms of the houseshare licenses/agreements become invalid. This is because if it is no longer your main residence you are effectively setting up an assured tenancy agreement for the others by default. However, if there's no signed agreement, then the terms and conditions under which the AST is conducted is subjective and you are in a potentially complicated position. If you take the view an AST has been created, it is new and therefore the deposit would need to be registered. If at all possible try and get a new contract/contracts signed before leaving the property to commence on the date you leave, otherwise give them notice if they won't accept, but do it all before you vacate. Creating one tenancy for all or individual tenancies depends on your outlook, type of occupants already there, their acceptance of proposal and standard of the property. I would probably err towards individual ASTs, registering the deposit for each. Hope that helps. Link to comment Share on other sites More sharing options...
heebs Posted December 1, 2007 Author Report Share Posted December 1, 2007 Many many thanks all those you gave such useful info and advice... kind regards Heebs Link to comment Share on other sites More sharing options...
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