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advice for live-in landlord re damages


needadvice

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I would really appreciate any advice on the following situation:

I am a live-in landlord (my property) who rents out rooms with shared areas of the property (kitchen, bathroom etc). An "excluded occupier" recently caused accidental damage to my computer for which he admits fault. However, he is refusing to pay the amount estimated for repair by an independent company and wants his deposit returned. He says that the deposit was for damages in the property and is seperate to this situation.

As he is an "excluded occupier", I have the deposit and our agreement was mainly verbal in terms of damages although I did issue him with a receipt for the deposit which states that the deposit will be returned upon leaving the property unless their are ANY damages or breakages...

The amount for repair has been estimated for more than the deposit covers. He is also threatening legal action if I keep the deposit. I would like to know if I am legally allowed to keep the deposit to cover this and also if there is any way that I can demand the surplus required for repair.

Thanks in advance.

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Thank you all for your replies.

Keeping it was my inclination but I thought I should check to see if anyone knew of legalities that meant I was not allowed to do so. I have done some research online about this and it seems quite a hazy area as generally deposits talk about the landlord's 'property' which could obviously be taken as the house etc but I also consider my computer as my 'property'!

'Excluded occupier' is somebody who is sharing accomodation with the landlord or a member of the landlords family, i.e. they share kitchen, bathroom etc. The shelter website has quite clear definitions if you want more info on this stuff.

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