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Digs deposit - covid 19

  • 24-03-2020 10:43pm
    #1
    yellow hen
    Registered Users, Registered Users 2 Posts: 4,030 ✭✭✭


    Need advice....

    Have 2 students in digs. As of today they have 2 payable months left. When they went home last week, we offered them a free month. Then for the last month we usually retain the deposit as the rent. So now it's confirmed they aren't coming back but we didn't get the 30 day notice that we usually get (for obvious reasons). The students have requested their deposit back which in effect means we're down 2 months rent (this is my main source of income). I've never been mean or taken advantage of our students so this question is not from a place of greed. Do you think it is right that I return it all?


Comments

  • #2
    Kilboor
    Registered Users Posts: 1,224 ✭✭✭Kilboor


    I think your easiest and most moral option here would be to return the deposit and leave it go.

    These are extraordinary circumstances.

    However that said maybe you could offer half the deposit back as "a gesture of goodwill" and they may accept to avoid hassle.


  • #3
    Samuel T. Cogley
    Registered Users, Registered Users 2 Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Half the deposit back seems like a good compromise to me.


  • #4
    Tasfasdf
    Closed Accounts Posts: 660 ✭✭✭Tasfasdf


    Keep the deposit. Your running a business not a charity. You will be out 2 months with no notice.

    BTW I am a renter.


  • #5
    antix80
    Registered Users, Registered Users 2 Posts: 2,419 ✭✭✭antix80


    Now a lawyer (obviously! I've been watching too much better call saul) but what does the licensee agreement say?

    Here's a few points I'll throw out there that suggest you shouldn't retain their deposit:

    1. You should never retain the deposit as the final month's rent. They should pay rent as normal, then they move out, then you refund the deposit.

    2. You set the precedent of letting them off rent for the month they didn't need. Based on that, it's hard to justify charging an extra month - especially not out of the security deposit.

    3. They're students in digs specifically needing a room for college. If there's no college, it follows that you can't offer digs. Maybe another licencee arrangement, but if you don't have a written contract and your agreement is to provide digs while they're in college, and the college year is over - arguably so is your contract.

    Going forward, try to word contracts a bit better to avoid situations like these. BTW no good deed goes unpunished - perhaps you should have halved rent, and maybe even surprised them with a refund at the end. As it is, I think it's a little harder to justify retaining their deposit but you could always chance it and it seems you may have a right to.


  • #6
    Browney7
    Registered Users, Registered Users 2 Posts: 3,100 ✭✭✭Browney7


    yellow hen wrote: »
    Need advice....

    Have 2 students in digs. As of today they have 2 payable months left. When they went home last week, we offered them a free month. Then for the last month we usually retain the deposit as the rent. So now it's confirmed they aren't coming back but we didn't get the 30 day notice that we usually get (for obvious reasons). The students have requested their deposit back which in effect means we're down 2 months rent (this is my main source of income). I've never been mean or taken advantage of our students so this question is not from a place of greed. Do you think it is right that I return it all?

    When is the "free month" up? Are you actually down any rent yet? Maybe advertise the room again on Daft to see what you get on a rent a room basis?


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  • #7
    Edgware
    Registered Users, Registered Users 2 Posts: 5,874 ✭✭✭Edgware


    yellow hen wrote: »
    Need advice....

    Have 2 students in digs. As of today they have 2 payable months left. When they went home last week, we offered them a free month. Then for the last month we usually retain the deposit as the rent. So now it's confirmed they aren't coming back but we didn't get the 30 day notice that we usually get (for obvious reasons). The students have requested their deposit back which in effect means we're down 2 months rent (this is my main source of income). I've never been mean or taken advantage of our students so this question is not from a place of greed. Do you think it is right that I return it all?

    You usually retain the deposit as the last months rent. That is not what the deposit is for. In any case they have a free month. Theres no reason why you should be at a loss.
    They'll be grand at home with Mammy


  • #8
    cant26
    Registered Users Posts: 578 ✭✭✭cant26


    I have a friend in this exact situation. She gave half the deposit back and the students, well their parents were happy with this. The fairest option for both parties.


  • #9
    yellow hen
    Registered Users, Registered Users 2 Posts: 4,030 ✭✭✭yellow hen


    Thanks everyone. In the end I gave back 75%. Was the most generous I could afford to be.


  • #10
    ted1
    Registered Users, Registered Users 2 Posts: 23,650 ✭✭✭✭ted1


    yellow hen wrote: »
    Thanks everyone. In the end I gave back 75%. Was the most generous I could afford to be.

    Make it back next September by increasing the rent by 8% , after 9 months you’ll have 72% of the 75%


  • #11
    Claw Hammer
    Registered Users, Registered Users 2 Posts: 6,289 ✭✭✭Claw Hammer


    ted1 wrote: »
    Make it back next September by increasing the rent by 8% , after 9 months you’ll have 72% of the 75%

    Rents are falling. The o/p will be luck not to have to reduce by 8%.


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