Potentially, yes. A homeowner does not automatically become entitled to keep a deposit simply because the licence arrangement has ended.
There may be legitimate deductions. These could include unpaid accommodation fees, agreed utility contributions, missing property or genuine damage caused during the licence period. However, the homeowner should be able to explain the basis of the deduction and, ideally, provide evidence supporting it.
Suppose a renter pays a €900 deposit and leaves the room in good condition with all payments up to date. If the homeowner simply refuses to return the money without identifying any loss, the renter may have a potential claim.
The Small Claims procedure is particularly important in this situation. The Courts Service expressly allows claims concerning the non-return of a deposit relating to a room or flat in a house where the homeowner lives. Eligible claims can be for up to €2,000, with a current application fee of only €25.
Evidence can make a significant difference. A renter should retain the signed licence agreement, proof that the deposit was paid, records of monthly payments and photographs showing the room’s condition when moving in and moving out.
If the homeowner claims €500 for a damaged wardrobe, for example, a photograph showing that the damage existed before the licence began could resolve the disagreement quickly.
This is one reason a detailed written agreement can benefit the room renter as much as the homeowner. SigSwift’s Rent A Room Licence Agreement can record the deposit amount, the circumstances in which deductions may be made and photographs or other evidence relating to the accommodation.
The best time to agree how a deposit will be handled is before it has been paid, rather than after a dispute has already arisen.
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