I can keep the deposit yes??

[wishiwasinbarbados]

I rent out a room to a Lodger.
The new one, due to come in on Sept 1st, paid deposit and 1st months rent to secure the room.
Now they've had a change of circumstances and no longer need the room.
I'm thinking I keep the deposit but give back the months rent?
Contract says early termination must be 1 months notice. But the contract starts on Sept 1st.

Lodger has given 10days notice that they don't need the room.

Yes you can (not a lawyer)

it will be up to the tenant deposit scheme I imagine.

Wouldn't you keep the rent in lieu of notice rather than the deposit?

@Tweeps a lodger agreement isn't covered under the housing act so you don't need to place the deposit in a scheme.

No it won’t. Clue is in the name! That’s the tenant deposit scheme, this is a lodger.

Legally, if your deposit contract is clear - then yes it’s yours to keep. And I think it’s fair because you lost out on a lodger who would have moved in. BUT renting sucks arse. Personally if I were able to get another lodger before the 1st October, I’d return the appropriate proportion of the rent.

It's a holding deposit, so yes, you can keep it, that's what it's for.

https://blog.openrent.co.uk/holding-deposit-and-fees/

If I was you and found another lodger to move in on the first, is give it back to them as I'd suffered no financial losses.

Otherwise, yes, sounds right

if you can find another lodger before give the whole thing back.

If you cant then the equivalent of 20 days rent and return the rest.

We don't know all the facts, how circumstances have changed etc, only you do.

If the roles were reversed, how would you like to be treated?

I think it would be fair and morally right to give the deposit back along with the first months rent IF you get a new lodger by 1st or shortly after. Otherwise just give the rent portion back.