Return of deposit?

Joya · 03-07-2015 1:32pm #1

Hi all,
i have an issue as i have rented the room to a guy that was supposed to move in on august 1st and he paid me a deposit to secure the room, we wrote it down and both have signed it.
today he wrote he is not moving in from some reasons and he is asking me to return the deposit, but that i can keep the quarter as a "compensation".

as far as i am aware i am under no legal obligation to return the deposit in these circumstances but would like to be fair, not sure what is the common thing as have not been in this situation ever before.

any advise would be very much welcomed, thanks a lot in advance to all

Joya

Mr. Incognito · 03-07-2015 1:54pm

The Deposit was to secure the room.

He was due to move in on August 1st.

You have adequete notice to source an alternative tenant.

You can retain the deposit as security until that happens and set it against any lost rent.

In the current environment if you cannot find a tenant in four weeks you are doing something seriously wrong

Give him the deposit back once the new tenant is located. In full.

Joya · 03-07-2015 1:59pm

Mr. Incognito wrote: »

The Deposit was to secure the room.

He was due to move in on August 1st.

You have adequete notice to source an alternative tenant.

You can retain the deposit as security until that happens and set it against any lost rent.

In the current environment if you cannot find a tenant in four weeks you are doing something seriously wrong

Give him the deposit back once the new tenant is located. In full.

Thank you Mr. Incognito,
That sounds like a good advice, specially because i refused few people who were interested when i rented it to him, so not sure how fast i can find another suitable person as some of my requirements are quite specific (i am looking for a vegetarian, non smoker).
i do not see why should i pay from my own pocket if i now do not find another person on time, but am willing to return the deposit as soon as i find a new person and keep the part that could cover the period in between, i feel that would be only fair to me as well.
i will reply now to him and see what are his thoughts, thanks a lot.

Mr. Incognito · 03-07-2015 2:48pm

Joya wrote: »

Thank you Mr. Incognito,
That sounds like a good advice, specially because i refused few people who were interested when i rented it to him, so not sure how fast i can find another suitable person as some of my requirements are quite specific (i am looking for a vegetarian, non smoker).
i do not see why should i pay from my own pocket if i now do not find another person on time, but am willing to return the deposit as soon as i find a new person and keep the part that could cover the period in between, i feel that would be only fair to me as well.
i will reply now to him and see what are his thoughts, thanks a lot.

Just to be clear here. You cannot keep the deposit until you find the perfect, ideal vegetarian non smoker.

You can only keep the deposit until you cannot find ANY altermative tenant ready to stump up the money.

At that stage you have an opportunity to recoup the loss and his deposit should be returned.

To be honest, you have a month. You will find someone. I would return one half now and one half when that person is in situ.

Keeping it two months is taking the preverbial.

Joya · 03-07-2015 2:53pm

Mr. Incognito wrote: »

Just to be clear here. You cannot keep the deposit until you find the perfect, ideal vegetarian non smoker.

You can only keep the deposit until you cannot find ANY altermative tenant ready to stump up the money.

At that stage you have an opportunity to recoup the loss and his deposit should be returned.

To be honest, you have a month. You will find someone. I would return one half now and one half when that person is in situ.

Keeping it two months is taking the preverbial.

Don't worry, I usually give the room to first who is ok and wanted to take it so I'm not looking for the perfect anything.... Just that we are both happy with each other if you know what I mean..
I took suitable non vegetarian already two times and was happy with it
And I realllllly hope to have it sorted in next few days I feel so much pressure otherwise on my head and can hardly stand this position...
Not sure what preverbial means but yes, thanks anyway &#55357;&#56842;

coylemj · 03-07-2015 2:58pm

As with selling a house, if the original would-be tenant/purchaser pulls out after a 'deal' is agreed and you have to go to the market again with the cost of placing new ads. etc., you would be entitled to recoup the additional costs from his deposit but that would be it, otherwise he's entitled to a refund.

Joya · 03-07-2015 3:04pm

coylemj wrote: »

As with selling a house, if the original would-be tenant/purchaser pulls out after a 'deal' is agreed and you have to go to the market again with the cost of placing new ads. etc., you would be entitled to recoup the additional costs from his deposit but that would be it, otherwise he's entitled to a refund.

exactly.

athtrasna · 03-07-2015 6:52pm

I don't think it's so cut and dried. You sound to me like you're an owner occupier and if you are the would be tenant would be a licensee. A licensee only has to give reasonable notice as does the owner. The would be tenant/licensee has given you a months notice and on that basis I think the deposit should be returned in full now.

Return of deposit?

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