Deposits from Letting out different HMO's questions

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    Deposits from Letting out different HMO's questions

    We are going to be letting out a house (licensed HMO) that has 4 bedrooms and will have 4 seperate AST's. Each has their own room and they share a kitchen, common rooms etc.

    We will also be letting out a 2 bedroom house to two people who will share common areas but have a separate bedroom. They will also receive AST's

    We intend to take deposits and put it with TDS etc and use a professional inventory company to do the inventories.

    My questions are...
    Do we take a damage deposit from each tenant?
    What about damage to communal/shared areas - who is to pay if you cannot prove which tenant did the damage?

    Can we take deposits with a license?

    This is one of the drawbacks of room only tenancies. I don't see any reason why the two bed house can't be let on a joint and several tenancy agreement where it would be much easier to make the tenant responsible for the common parts. You say the 4 bed house has an HMO licence. Is that because of additional licensing with the local authority or did it used to have 5 or more tenants over 3 stories? If is the latter then I think you may still be able to let it on a joint tenancy for 4 tenants.


      The 2 beds to two people isn't going to be a HMO. You don't need fire doors etc as you would for an HMO.

      I run several HMOs and have had some problems with damage. I don't buy expensive stuff. I only supply one piece of cutlery and crockery per person, but extra tea spoons. I don't supply bedding and as I come to replace mattresses they're waterproof ones.

      I provide a cleaning service and hoover their rooms (and check for drugs, 'guests', pets etc) as well as cleaning all the communal parts of the house, window cleaning and gardening. I check the fire alarms. You are responsible for keeping the communal areas clean and you need a responsible person to check the fire alarms. IMO tenants in HMOs are not responsible enough to do this - they have trouble putting the bins out!

      I don't take deposits anymore because when they leave they just don't pay the rent so it's not worth the trouble. I do mostly weekly rents but the few on ATS's have inventories with pictures for their rooms - actually I only have one AST tenant now. You just can't know who has done the damage in a HMO so don't have anything precious. I charge a bit more each week over what I think the room is worth (£2-£3) instead of a deposit and that will cover accidental moderate damage.


        Thanks, thats made life easier


          Different to Berlingogirl.

          I always take deposits for my room only lets. And they have been useful to replace soiled mattresses, repaints where walls have been trashed, and carpet replacements.

          (For perspective, as BG has weekly rents she likely has a lower level tenant, mine are young professionals.)


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