Deposit Paid in Share House - Changed My Mind

I am new to tenancy and went to see a large share house. In the moment I agreed to rent a room , I didn’t sign any documents. I won’t be moving for 2 more weeks so the landlord said I could pay one weeks rent to secure my room. I gave this in cash.

Today, I decided this house will not work for me and I informed the landlord. He told me he will give me the money back If I find someone else to rent the room. Is this allowed?

Comments

  • +31

    Member Since
    4 min ago

    Thanks for asking.

    • +14

      Why do ozb members quote when people joined?
      Does it matter people just joined to make a post?
      I don't understand..?

      • +15

        Member since 27/12/2014

      • +1

        Because many have weird "issues" and often when you spend time giving advice they either.

        Never comeback
        or
        They start having reasons, that werent explained in the original post why it wont work for them.

        • +6

          never come back

          And? so? therefore? What's wrong with that? It's an online forum, didn't know that as a poster you owe something to those that choose to reply.

          They start having reasons, that werent explained in the original post why it wont work for them.

          Again. And ? so? therefore? what does their post history have to do with the post?

          You haven't provided an actual reason.

          • +1

            @coffeeinmyveins:

            You haven't provided an actual reason.

            Following your theme, why should I have to give you one. You didnt even ask the question. Therefore I can ignore this cant I. 😀

        • +3

          Why does that matter if they respond back or not? If you chose to engage and give a response on the internet are you really expecting a response?

          Why would it matter if a 5 year member ask the same question?

          In comparison to an FB forum, no one quotes or cares when a member joined.
          The ozb members that quote joined date is actually weird in itself.

          I just find it strange that long term members constantly quote joined date like they think a recent member is less entitled to ask a question.

          Equally I'm not expecting a response and rather here to kill time while I rock my baby to sleep LOL

          • @yellowfever: You dont expect it, but here it is ROFL.

            I was just pointing out the reasons why in response to the question asked. Guess as you say I shouldnt do that and you would be wondering why?

            But as you say it is redundant to point out being new, especially now we have the L plate on the posts.

            I try to look at the question before I answer and like you say, I dont answer now if the question has too many holes in it. (ie its really not clear).

            But here I go again 😀 Probably shouldnt even bother replying to you.

      • +9

        Never understood it myself, seems sort of gatekeepery.

        • +2

          Exactly. People could post a link to the cure for cancer and still be dismissed with one of those pointless gatekeeping comments.

          • @ChillBro: If someone posts a link to the cure for cancer it’s almost certain to be spam, a scam or both.

          • +1

            @ChillBro: If someone has a cure for cancer and comes to ozbargain, they are lost!

      • +6

        I guess it's because first-time users come on, often post low-quality questions missing any detail needed to formulate a reply, then no matter what points we bring up they end up disagreeing with us and never sharing the resolution because they aren't interested in anything except to take.

        Not saying this is OP, but it raises the red flags.

        • +2

          IMO this is it.

          People come on here with their half-baked questions with at-best half a story seeking only affirmation for their opinion/actions.

          It's like the neighbour who you only ever see when he wants to borrow your hedge trimmer or you're having beers in the yard. Take, take, take.

          Even the more "infamous" posters/commenters are better received as they at least interact with the community, whether you think they're right or wrong.

    • -4

      how is this upvoted so much for pointing out a fact?

      It is currently nighttime

      There's a fact, useless to the OP's question. Can I get as many? :)

    • +4

      Is this allowed?

      Who does OP think they are committing to rent a place, confirming a date, paying a deposit and then changing their mind, wasting the mans time, possibly causing him to loose other interested persons and then expecting a refund…seriously?

      As with all commercial transactions once you pay a deposit it is a firm commitment to proceed and hence is NOT REFUNDABLE!
      And as with all commercial transactions, change of mind is no excuse to expect a refund
      This is what I would have said to OP.

      The fact he offered OP a opportunity to get their money back by finding someone else is very reasonable indeed

      And renting a room in a house does not typically fall under tenancy laws either even though they may be used as a basis for an agreement and determining security deposits.

      OP needs to start acting and thinking RESPONSIBLY.
      OP needs to consider the impact of their actions and decisions on others instead of thinking about themselves

  • +5

    Sounds pretty reasonable to me. Doesn't mean it's legal though. Check with your state or territory body that deals with rental rights.

  • +13

    As I see far too many questions like this, I think the word 'deposit' should be taught at school.

    I Googled it and the definition of deposit is 'a sum payable as a first instalment on the purchase of something or as a pledge for a contract, the balance being payable later.'

    What's your definition of deposit OP?

    • Thanks for your reply. Maybe I have chosen the wrong word, it was a weeks rent in order to hold the room. He was asking for a months rent as bond in addition to this, which he wanted me to give him today, despite not telling me previously he would need it so soon. As well as this, I told him I wouldn’t be moving until February 1st, and that was fine when I met him in person, but today he told me that jan 30th was the ‘latest’ I could move in.

      • -4

        Try to get your money back, if you can't then consider it lesson learned and by the sounds of that guy, a bullet dodged.

        • +21

          by the sounds of that guy, a bullet dodged.

          To be honest, I think it's OP who's the bullet in this case.

          A deposit is paid to secure the room. Why would you expect it back if you change your mind? That's wasting everyone's time. It might mean that the landlord has to spend time readvertising or chasing up the other people he has since turned down. I think it's perfectly reasonable for the landlord to keep it.

      • +2

        Maybe I have chosen the wrong word

        No I'd say it's exactly a deposit. As JimB said "or as a pledge for a contract". That was money down as a pledge to a contract of you moving in.
        Did you ask for or were you provided a receipt as to what the money was for. I would normally expect that to show any conditions (like what happens in the event of not moving in). If not, essentially you've given him money for what was agreed on - the room has been held for the agreed amount of time.

        As well as this, I told him I wouldn’t be moving until February 1st, and that was fine when I met him in person, but today he told me that jan 30th was the ‘latest’ I could move in.

        Doesn't really figure into it now that you're not moving in anyway.

        I'm assuming it's probably not a landlord, but someone subletting a room. Probably a good thing to just cut your losses as they may not put a proper contract in place anyway.

      • +4

        it was a weeks rent in order to hold the room

        That's a deposit. The problem is since you agreed, he will have stopped trying to find someone to rent the room. So if he returns your money, he has lost the time he hasn't been trying to fill it, which will probably delay when he starts earning money from it. You paying a deposit to hold the room is you making a financial commitment and him having security against you deciding not to.

        I'd try and find someone else to take the room if you know anyone, otherwise it's either the landlord loses money or you do, and unless the landlord is incredibly generous it is going to be you who loses it. I think if you were the landlord in this situation you'd be frustrated at the tenant and feel entitled to keep the deposit, I know I would.

      • +1

        I think you should be thankful you aren’t dealing with someone who chops and changes all the time. Better you don’t move in there.

        I would also kiss your holding payment good bye. This payment was so he would not advertise to other people as you had secured the right to rent the room. It’s now up to you to advertise the room being available and find someone or accept this payment is gone. It’s to cover his effort in organising a tenant.

      • +4

        One weeks rent is the typical legal deposit to commit to a room or property and regardless of what you call it, its NOT REFUNDABLE!

        Asking for the bond before you move in is also well within reason.

        Now go and do as the man said

        Go and advertise for someone to take your place.if you want your money back

        If not at least be courteous enough to tell the man to keep your deposit and to feel free to find another person

        You are wasting valuable time here.

        Now go!

  • +30

    If you can get your money back, then what's the point of a deposit?

    In the moment I agreed to rent a room

    Lesson - don't make rash decisions

    • +3

      Lesson is actually…

      Learn to take responsibility for your actions and be prepared to be accountable for your mistakes

  • +16

    Was going to reply but I changed my mind, sorry if that is an inconvenience to you.

  • +13

    I agreed to rent a room

    You entered into a verbal binding agreement.

    I didn’t sign any documents

    It doesn't matter. A verbal agreement is as legally binding as a written contract.

    https://www.fairtrading.nsw.gov.au/buying-products-and-servi…

    What to expect when you enter into a contract

    Contracts are legally binding
    You should be aware that payment of a deposit and/or signing any documents might mean you have entered into a contract and are bound by the terms and conditions of that contract.

    Once you agree to a contract, you are committed to it, so it is important you are comfortable with the contract terms.

    If you want to pull out of the contract before it’s finished, you may end up paying a penalty (sometimes the full amount of the contract) or you could be taken to court to compensate loss.

    Some contracts may allow you to 'opt-out' or terminate your contract early, with or without a penalty. If you want an opt-out clause in the contract, you should get independent legal advice to make sure you are properly covered.

    • +1

      Its more than verbal agreement when a deposit is paid in exchange for keeping the room
      That is a firm commitment on both sides as the other party has accepted payment for the room.

      i.e Its a done deal

      End of story

  • +44

    It's almost like the landlord asked for a deposit to act as a disincentive for people who make rash decisions and waste his time

    Have a guess what you've done

    • +2

      Hit the nail on the head!

    • +2

      The landlord is probably sick of time wasters like OP.
      The landlord is looking for a firm commitment by getting a deposit
      Op gave a firm commitment by paying the deposit

      OP is a time waster

      OP has wasted the landlords time
      Now OP is wasting our time trying to get out of a legally binding agreement because he has simply changed his mind.

  • +1

    can you stay at that place for a week?

  • +4

    I could pay one weeks rent to secure my room

    If the landlord has secured/held the room for you, he's doing/done his end of the deal?

    • +2

      If the landlord has secured/held the room for you, he's doing/done his end of the deal?

      Surely you're not suggesting the landlord should be paid for doing his end of the deal ?!?!?

      I thought landlords should bend over backwards to accommodates the whims of prospective tenants, and even then, only begrudgingly accept rent if it is convenient for the tenants?

    • Incorrect

      Further rent would be required in addition to the deposit and payment in full of the bond

      Staying only for a week means OP looses the bond as well - broken agreement!

      This is not short term or overnight accommodation

      Be realistic
      Put yourself in the landlords position
      Then make a reasonable suggestion that benefits both parties

      • … Didn't realise you were there when op and the landlord made the agreements.

  • +6

    What is with people not knowing the definition of a deposit!?

    It's an amount that you contribute/forfeit in return to securing a good or service.

    If you fail to carry out your side of the contract/agreement you forfeit it.

    • +2

      When people can't see the difference between a change of mind when buying something from officeworks and making rental deposit.

      You know society is going downhill.

      • Its irresponsible people like OP expecting everything to go their way at other responsible peoples cost

  • +6

    Deposit Paid, Changed My Mind

    So deposit lost, which is what happens when you change your mind for things like this.

  • +4

    Its not even a deposit….the money was to hold the room which the LL did.

    The change of mind does not take away that te room was held for you for the week.

  • +4

    What would be the point in taking money to hold the room if they just going to give it back if you change your mind?

  • +4

    He told me he will give me the money back If I find someone else to rent the room

    Great. You do understand that he is now inconvenienced because of your change of mind, why should he not be compensated for it?

    . Is this allowed?

    Irrelevant. You changed your mind, why shouldn't you have to pay for it? If you buy a meal at a restaurant, sit down, then decide you don't want it, do you go and ask for your money back?

    I am new to tenancy

    Clearly

    • +1

      New to commercial transactions as well !

      Obviously confused by Kmart who offer change of mind money back as long as item is returned in original condition.
      This is just their returns policy
      Not the law

  • +2

    If you paid the money to hold the room and didn't change your mind, how would you feel if the landlord rented the room to somebody else despite your holding deposit?

  • -5

    easy just threaten ATO, ACCC, XCAT, or w/e authorities since the "landlord" probably hasn't been lodging rental bonds nor reporting rental income anyway 99% of the time

    • +1

      Seems unlikely given the landlord knew to call it 1 week rent rather then 1 week bond.

      Also OP has nothing to do with bond as he's not living there yet.

      Authorities will do nothing, OP paid for his 1 week of accommodation and there is no refund implied in that.

    • +1

      Suggesting such threats is of no assistance at all
      Your advice is totally irresponsible and unjustified as well.
      You know nothing about this person nor their legal responsibilities.
      Shows what kind of person you are.
      I certainly would not do business with you nor would i rent any property to you

  • +3

    Again…. just like the car guy… you paid a deposit to "secure" the item (room) you wanted… so now you expect to not take the room, and expect your money back. How would you feel if you paid a deposit but the landlord got someone else in…

    You lose you deposit bc it was you who changed YOUR mind.

  • I would contact ACA.

  • +3

    another one post wonder

  • While you didnt sign any document physically, a contract is already made the moment you agreed to it verbally/email/sms or by the mere action of providing cash as a deposit.

  • +1

    it's almost as if deposits exist for a reason
    verbal contract is still a contract, find someone else or cop the deposit

  • +1

    Tough titties!

  • +1

    Move in for a week, but then just keep shitting in the sink.

    • because OP is in deep shit?

    • To move in he would still have to pay the bond

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