Rent a Room Scheme - Tenant issues

A

AliDesign

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Hello,

I am currently renting out 2 rooms in my house under the rent a room scheme to help with my mortgage. I co-own the house but my ex-partner has been uncontactable for the past 3 years so I have been left no choice but to get tenants in.

I have been having awful issues with my latest 2 tenants. The first guy (was a model tenent up to this) was only in the house 3 weeks and I came home to find out he had found my car keys and stolen my car resulting to it being impounded by the gardai. I have evicted him over this and he moves out on Monday.

The second guy has been in the house since April. He paid his deposit and 1st month's rent when he moved in but I have not recieved anything since so I am currently down 2 months payments (€830). He claims he is having issues setting up a new bank account and the standing order won't release.

I have decided that I really cannot deal with this anymore. It is too dangerous living with people I don't fully know and you can only get so much from a viewing meeting so you never know what awful thing could happen later down the line.

I have decided to move out and let out the house as a whole.

Anyway, with the background explained. In addition to general first time letting tips, my question is: how much notice must I give to evict my second tenant?

I am really hoping that I can get the rent off him because I cannot strees how much I need it (between the 2 of them I'll be down €1660 by the end of the month). But if he does give me the rent can I still evict him? I know standard landlord obligations don't apply to rent a room tenants but I am afraid if I don't give him enough notice I may get in trouble. I really need him out so I can get it let out as soon as possible and start getting money in to help with the ongoing loss I am currently making.

Any advice greatly appreciated.
 
He isn't a tenant, he is a licencee.
You only have to give him "reasonable" notice, so a week or two to find somewhere else is fine. He has no recourse against you, as he is only a guest in your house.
 
+1 Absolutely correct, Berni

However, there are many many problems if you rent out the property and do not live in it. You have to comply with the Residential Tenancies Act 2004, deal with the Private Residential Tenancies Board, pay the NPPR, tax implications, landlord's insurance, probable agent's fees etc.

Again, there is nothing to guarantee that if you rent out the whole house that the tenants will pay the rent and it will take longer and be more stressful to evict a tenant than it is to evict a licensee or lodger. Eviction of a tenant would take a minimum of six weeks - if they leave, and some do not. There are instances of tenants "over-holding" for months and months and in some cases, it has taken over a year to regain possession of a property. Being a landlord is not an easy nor stress free option by any means.
 
Hi there. I did the rent-a-room gig for 6 years - in fact, I'm still doing it - but waiting on the last tenant to move away (by natural means - whenever his circumstances bring that about). During that time, I experienced all - the good, the bad and the ugly.

The difficulty is that you live there - and have daily, ongoing contact with lodgers. That means that if there are issues arising - it makes it all the harder to address them. If you are good-natured, you will be tested. You have no option but to be tough. One thing I learned - is to lay everything down before they move in. Tell them exactly what the story is i.e. that you won't tolerate late payment of rent - not even for a day. Take sufficient deposit to make sure your well covered. If they can't produce a deposit and the first months rent, that should ring alarm bells for you.

I don't know the individuals your dealing with. However, I think at this stage, they feel they are ahead of you - and you don't stand any chance of getting that $ back. If it was me - I would be changing the locks - right now. Bag up their stuff. I *think* by the letter of the law, you can't withhold their property in order to induce them to pay up (others here will be able to clarify this). However, I would be very tempted to withhold (I'm NOT advocating you do this - I'm just expressing how I would feel about a situation like this).

Due to the transitory nature of lodgers, I went through quite a few over the past 6 years. They were very much a mixed bag. The rent a room gig gets bad press from both lodgers and home owners alike. From the tenants perspective, many don't like the dynamic that's in play i.e. that they are in effect subordinate to the home owner in terms of the basis of how things run within the house - despite the fact that it IS also their home. From the home owners perspective, you get issues like you have described. The other issue being that the reality is that nobody cares for stuff that is not their own (to varying degrees - but generally , this is true). I'm talking about fixtures, fittings, equipment, possessions, etc. This can become a point of tension for both parties. I started off probably being a bit too combatitive in this regard. However, what I learnt was - with stuff like that i.e. caring for the place, cleaning up, etc - it's just makes for an easier life just to suck it up - and take care of it yourself (even if that means cleaning up after people - which invariably, it does).

I only really got 'ripped off' the once. It was the one time I didn't take a deposit - and so, that guy left having caused €300 worth of damage. I can only hold myself responsible for that - and it was a lesson learnt. Overall though, it has been a rewarding venture. It has contributed somewhere between €30-€35k to my mortgage. In addition, whilst I didn't get on famously with all - it was definitely an education. I am still in contact with a few of them - and in fact, the very fact that one of them stayed here led to another business venture which has netted me not an inconsiderable sum - and continues to do so.

I know your getting frustrated - given your experience to date. However, maybe it's still worthwhile trying once more. Be a bit more selective - and learn from what went before. i.e. lay it down - NO late payment of rent. The important point here is that becoming a fully fledged landlord is going to bring a new set of problems. Furthermore, you have much less power in this situation - as the law is heavily stacked in favour of the tenant. There are AAM'ers with experience in this area - that can advise you in this regard. In addition, you will have to pay tax on rental income, the property is more likely to take more of a battering and there may be implications for your mortgage (are you on a tracker? Does your loan agreement stipulate that it is for a 'home' loan as opposed to an investment property?). There may also be implications in terms of stamp duty and invariably, your insurance premium on the house will be considerably higher. If you involve a letting agent, then you will incur the cost of this. You are also required by law to register with the PRTB - another cost. Furthermore, you have to pay both household charge and possibly second home tax? Meanwhile - the rent a room scheme - despite it's pitfalls provides you with the ability to take in €10K tax free - and the ability to easily evict a lodger should they behave in the manner you have indicated in your post.

It's definitely worthwhile thinking this through before you make a decision...
 
Excellent post, serotoninsid.

As a live-in landlord, you have (or should have) much more control over what happens in your house. You should have a set of "house rules" as regards cleaning rotas, etc. These should be set forth and discussed before the lodger moves in, and both a deposit and first periods rent paid.

To encourage a longer term lodger, I have also collected a "Fee" (50 euros) from the lodger, to cover advertising, replacing locks (at end of agreement) and cover the cost of any reference checking. I returned the "Fee" on the first day of the sixth month of occupancy, if the lodger was still there and there were no outstanding problems - otherwise they forfeit the "Fee". I felt that after six months I would have received sufficient rent to cover same.

Much of getting the correct person as a lodger/licensee is during an interview with the prospective person. Don't be afraid to ask lots of questions and IMHO, an application form with lots of questions will put off any dubious applicant while the good person has no problem answering it.
 
It's your house- C'mon!
Invite your friends over for a grill, or for watching movie together!

Move your kitchen stuff to other drawer and place the sticker: ''DO NOT TOUCH''

I've seen property where each lodger had own sponge for own dishes - this is NORMAL!
 
I presume the troubled Landlord is in East coast area, I have seen house sharing adverts in West coast where was clearly stated: ''House trained individuals only''.
Clearly you got some untrained peoples in, I really hope you sort that out.
 
So after putting lots of pressure on the non rent tenant I arrived home last night to a note saying he had moved out because he had no money to pay his rent. I have a tenancy agreement signed by him that covers early departure etc. so am wondering if there is anything I can do now to try and recoup the rent. I have his deposit that can cover half the loss but what can be done to attempt to get the rest? This has hit me at an awful time as my boiler has broken and needs to be replaced so I was banking on getting his overdue rent to cover the new boiler cost. I know where he works but that is the only info I have on him and I would be too afraid to approach him myself. Are there steps that can be taken in this instance?
 
If he has left quietly and not damaged your house, then you should probably consider that a good outcome and let it go.

Trying to get the rest of the rent would require you to go to court, and I'm not sure if the small claims court would apply in this scenario.
 
Your only recourse is to sue him in court, which could be time consuming and costly, especially if he has no money. This also happens when renting out a property, the tenant goes into rent arrears and just disappears. The PRTB cannot help in situations with live-in landlords - this type of accommodation is outside their remit.

You should have been more "on the ball" as regards late rent. If rent is not paid on time, then act immediately - notice to leave.

IMHO, in this case you should probably put it down to experience and move on.

And remember, he was not a tenant but a lodger or licensee in your home.
 
As facetious said, put it down to experience and move on. Stick the room back on daft immediately - and get deposit and rent in from the next lodger. Screen your next lodger as best you can (I know you never really know until they've moved in - but do the best you can with this) and lay down the ground rules i.e. zero tolerance for late rent - ask them NOT to ever put you in that position - and if they can't work with that, then they should go elsewhere. If you do let things slide, don't let them go anywhere near the level of their deposit. Once they go beyond this, they will do what he did. Set down the same rules for utility bills. Maybe look at increasing deposit amount - if your concerned about any of the above.
 
I'd agree with all of the above. I both rent out a house and rent a room in my own house. I have to say I've had very few problems with people that have rented the rooms. I've never actually asked for a reference when renting a room in the house... I just think you've been very unlucky.. I've always gone for people I've liked when they've come around to look at the room. I think give it another go like suggested. Chin up. :)
 
lucozade said:
I'd agree with all of the above. I both rent out a house and rent a room in my own house. I have to say I've had very few problems with people that have rented the rooms. I've never actually asked for a reference when renting a room in the house... I just think you've been very unlucky.. I've always gone for people I've liked when they've come around to look at the room. I think give it another go like suggested. Chin up. :)
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I'm currently a lodger with a live-in landlord. I chose several rooms on offer on Daft. As I was in England at the time, it was not possible to meet the landlord but he accepted me via emails. When I arrived in his town, he even came and picked me up at the station. I immediately paid my deposit and rent.
Everything is fine - no problems either way.
 
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