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Deposits vs month in advance


lapso77

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:unsure:

Due to the new regulations regarding not holding a tenant's deposit, I am thinking of asking for a month's rent in advance which I don't normally do and hold that as security as a way of getting round the legislation. The main reason is as my tenants are usually DSS, the deposit is a way have of having a cash boost whilst waiting for rent to come through as I have normally incurred costs of redecoration etc between tenants and this money is obviously useful at that time seeing as I have to carry the mortgage for a while

Any thoughts on the legality of this idea ??

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Hi,

I'm not sure of the legality ... but would question why you would want to try and circumvent a piece of, yet to be introduced, legislation that is surely good news for the letting industry. ie: Forcing bad landlords who unreasonabley withhold their tenants deposit money out of the industry.

Why not just join a custodial or insurance based Tenancy Deposit Scheme whe (or if) the new legislation is introduced ......

Mark

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TDS has potential to definately be a good thing for both landlords and tenants for lots of reasons. For example, it would help protect landlords from very difficult tenants who have damaged the property but object to deposit deductions. If it goes to arbitration dubious tenants won't see any of their money until settled by a third party, possibly months later.

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