Here is a question to the blog clinic from Jane (not her real name) who is a live in landlord
I am a live-in landlord, however I foolishly picked the wrong tenancy for my tenant. I signed an Assured Shorthold tenancy.
Does this mean that I lose my rights as a live-in landlord? Specifically, does it mean that I could be in trouble because I did not know that this meant I would have to register the deposit in a government-backed tenancy deposit scheme?
Answer
Don’t worry, if you live in the same building then you cannot have an AST whatever it says on the document signed by the parties.
Provided the building is not a block of flats where you live in one flat and your tenant lives in another one – in which case it WILL be an AST – but it does not sound as if this is the case here.
It is only deposits paid by tenants with an AST which have to be protected so you will not get into trouble for failing to protect this one.
Indeed, if the occupier shares living accommodation with you and you are able to go into their room (eg to change the sheets or for cleaning) then it is not actually a tenancy at all. The occupier will be a lodger under a residential license.
You will find out more about this on my special website for lodger landlords here.
Question:
Whilst it may not be a true AST, some tenancy agreements epcifically state the LL wil protect the deposit amongst other things. So whilst not required by statute, it could be required by contract?
Why would you not protect it? I know it isn’t required by law but that doesn’t mean it’s a bad idea. Remember it’s the lodgers money not yours.
I ‘Think’ (Im really not certain) – schemes charge the LLs a substantial fee if its a lodger, not a tenant. But i may have the wrong end of the stick.
If you go with TDS or DPS these are free Schemes, so really there is no excuse! Personally I would protect it is a back up!
If you’re a landlord, do read the internet and start caring enough to do things properly. You’re providing homes and shelter – it’s really quite a big deal.