Yes. If someone owes money under a genuine room licence agreement, a homeowner may be able to pursue the unpaid amount as a civil debt. However, the Small Claims procedure is generally not available simply because the amount owed is small.
The Courts Service specifically excludes debt claims such as unpaid rent, loans and invoices from Small Claims. This means that a homeowner who is owed €1,000 cannot simply pay the €25 Small Claims fee and use that procedure to recover it.
Instead, an ordinary civil debt claim may be required. For the homeowner, the strength of that claim can depend heavily on the evidence available.
Consider a renter who leaves owing one month’s accommodation payment. If there was only a verbal arrangement, the parties might disagree about the monthly amount, payment date or whether the final month had already been paid.
A written agreement can establish the position much more clearly. It might record that the licence fee is €850, payable on the first day of each month by bank transfer to a particular account. Bank records can then show which payments were actually received.
Including the nominated IBAN in the agreement can also remove another possible source of disagreement. If the renter says that the money was transferred, the account shown on the bank record can be compared directly with the account specified in the signed agreement.
The agreement does not guarantee that money will be recovered. A homeowner may still need to obtain judgment and, in some situations, enforce it. It can, however, substantially simplify the question of what amount was contractually due.
SigSwift’s Rent A Room Licence Agreement can record the payment amount, frequency, nominated payment method and other financial terms so that both sides have the same written record from the beginning.
Sponsored Post — SigSwift
