kitticat Posted January 21, 2010 Report Share Posted January 21, 2010 I am a new to be landlord and I was wondering is it law to take a deposit, if not, and I didnt take one then I wouldnt need to put it in a deposit sceme would I ? I have agreed with my tenant to be , that he pays a months rent in advance, and the last months rent, is this ok? Link to comment Share on other sites More sharing options...
What's worth knowing Posted January 21, 2010 Report Share Posted January 21, 2010 Hello, You sound like a lovely person, so please listen closely. A deposit is your safeguard should a tenant damage your property beyond what is deemed to be fair wear and tear. Taking the first and last months rent is no guaranty. do, do, do take a deposit. Between 1 months and 6 weeks is normal. Then pay for an inventory - schedule of condition report with digital pictures to be included. This is your record & proof of how the property was taken. This should be signed by the tenant within 7 days of moving in and returned for your files. Hope this helps! Link to comment Share on other sites More sharing options...
Lyndon Posted January 21, 2010 Report Share Posted January 21, 2010 I would recommend that you use an independent inventory clerk who is a member of the Association of Independent Inventory Clerks (AIIC) who will prepare the inventory and check the tenant into the property on the day that they move in. An inventory received seven days later is a week old. A lot can happen in a week! You can even have it written into your AST that you pay on the way in and the tenant pays on the way out. In the case of any dispute, whether actioned through ADR or through the courts, greater weight will be given to an independent inventory rather than one prepared by yourself or even a letting agent. Link to comment Share on other sites More sharing options...
snorkerz Posted January 21, 2010 Report Share Posted January 21, 2010 If you are proposing to take 2 months rent up front, and then charge the tenant another months rent 1 month later, then it is regarded by the courts as a deposit (no matter what you call it) and as such needs to be protected. Protection is free with DPS. Link to comment Share on other sites More sharing options...
Chestnut Posted January 21, 2010 Report Share Posted January 21, 2010 I agree with Fyldeboy! Why risk trying to circumvent the legal system when DPS is so simple to use. The inventory comments look like an answer to another question. You can choose to do your own. Link to comment Share on other sites More sharing options...
kitticat Posted January 22, 2010 Author Report Share Posted January 22, 2010 If you are proposing to take 2 months rent up front, and then charge the tenant another months rent 1 month later, then it is regarded by the courts as a deposit (no matter what you call it) and as such needs to be protected. Protection is free with DPS. Thank you all for your comments, in case you havnt guessed Im a total novice, I dont know much about DPS and I suppose thats why Im looking to avoid it, however I think I heard that you can put the deposit into an account of your own, I wondered if this has to be a special account set up for the sole purpose or if an existing account would work.I have already taken a months rent as a holding deposit as the property will not be available for 4 weeks and the tenant wants me to take it off the market, I have called the money "last months rent" as I was misinformed this was a way around DPS.Any advice would be welcome. Link to comment Share on other sites More sharing options...
Lyndon Posted January 22, 2010 Report Share Posted January 22, 2010 As you say you are new to all this I would concur with the others and recommend that you treat the extra month's rent as a deposit and lodge it with the DPS - it is free to use: https://www.depositprotection.com We did use them initially when the law first came into effect but, as an agent, I find MyDeposits works better for us. Link to comment Share on other sites More sharing options...
Melboy Posted January 22, 2010 Report Share Posted January 22, 2010 Simple answer kitticat.........no, it's not OK. The deposit must be independently safeguarded......by law. Plenty of advice here as to how to go about it. Mel. Link to comment Share on other sites More sharing options...
Lyndon Posted January 27, 2010 Report Share Posted January 27, 2010 I am aware that some landlords are not taking deposits. Instead they take "Non-returnable premiums" of £100 or £200 arguing that excess wear and tear can be dealt with by redecorating and claiming against tax as a repair/renewal. The law however is very clear. If you take a deposit in any way it must be protected in one of the three authorised schemes. Taking two months rent in advance and returning one month's rent at the end of the tenancy would be classed as a deposit. However if they did not have to pay the last month's rent then you might just get away with it. Link to comment Share on other sites More sharing options...
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