Agreed deposit to be taken after 6 months of AST

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    Agreed deposit to be taken after 6 months of AST

    Tenant have agreed to pay a deposit after the initial six months (allowing them time to save) As there was no clause in the TA to cover how the deposit would be use. I wanted to know whether a new TA needs to be sign or how to go about including a clause to say the Deposit has been protected and 'under what circumstances and how deductions be made'. Also, whether need to add a clause about GDPR?

    #2
    Utterly pointless and ridiculous in my view. What will you do if they don't pay? Evict them... Oh wait, you won't be able to as the non existent deposit was not protected.

    Just add one sixth of the amount onto the rent, and then you can reduce it after 6 months if you like.

    Comment


      #3
      JK0 - great point. However, the tenant cannot afford to pay 1/6 extra hence the arrangement above. Other response to my OP most welcome.

      Comment


        #4
        Originally posted by SpringGreen View Post
        JK0 - great point. However, the tenant cannot afford to pay 1/6 extra hence the arrangement above. Other response to my OP most welcome.
        One sixth extra paid as rent, or saved as a deposit is the same amount isn't it?

        Comment


          #5
          Agree with JK0, no point taking deposit now. I'd try and negotiate a rent increase instead, as he suggests. If they refuse, fine, try again 12 montsh after start if refused again, s21..
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

          Comment


            #6
            I am not asking whether there is any point of 'taking a deposit now' . A response to my original post would be great.

            Comment


              #7
              Your mistake - letting them move in before all this was sorted. Surprised they even passed credit check. You cannot require them to accept a modified AST. You could ask them to a provide a property -owning Guarantor - maybe.

              Comment


                #8
                Originally posted by SpringGreen View Post
                I am not asking whether there is any point of 'taking a deposit now' . A response to my original post would be great.
                That’s such a terrible idea, there’s no rational way to answer.
                It’s like asking what colour t-shirt you should wear to set fire to yourself?

                What are you going to do if the tenant doesn’t give you the deposit?
                You can’t sue them for it (in any realistic way), because you won’t incur any loss, and good luck trying a repossession with that clause in a tenancy agreement.

                If a tenant can’t afford a deposit either don’t rent to them or waive the deposit (possibly increasing the rent, your call).
                Doing anything else is, frankly, daft.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  Let me rephrase my question.
                  Let's say after the initial six months tenancy, the tenant have now paid a deposit. As there was no clause in the signed TA about how the deposit would be use / protected. I wanted to know
                  1/ whether a new TA needs to be signed or
                  2/ how to go a clause to say the Deposit will be protected within the 30 of receiving it and
                  3/ 'under what circumstances and how deductions be made'.
                  4/ Also, whether need to add a clause about GDPR?

                  Comment


                    #10
                    A new tenancy agreement creates a brand new tenancy with it’s own terms and conditions.
                    If it had a new deposit clause, that would allow a new deposit to be paid, protected etc.
                    All if the other new tenancy prescriptions may apply - it’s probably a follow on contract but don’t risk it.

                    You need to comply with the GDPR. That doesn’t require any contractual terms, but they may be a way of meeting some or all of the requirements. Mine don’t have such terms, neither does the givernment’s model template agreement.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                    Comment


                      #11
                      Tenant doesn't have to agree to any new tenancy nor changes: (Although offering lower rent makes it likely they will..).

                      If you really want to go this way then you would need complete new paperwork for everything (AST, EPC, Right to rent, deposit, inventory, etc etc etc...) and do a check-out/check-in inventory & photos, signed by tenants, agree with tenant damages (or sue..): Use either all documents from NLA or RLA or base it on Mother T's gov.uk model tenancy agreement.

                      But that all means you have more delays if any eviction needed. Why bother with all the paperwork, checking, photos etc.. I can see little or no upside.

                      So much simpler to do nothing or agree a rent increase... But, hey, free country...
                      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                      Comment


                        #12
                        It is a bit clearer for me now especially with all the new paper work which needs to be done. Is this a new requirement to have a new inventory to be done when signing a new TA? In summary, starting the whole 'paper work' process?

                        Comment


                          #13
                          jpkeates: 'You need to comply with the GDPR. That doesn’t require any contractual terms, but they may be a way of meeting some or all of the requirements. Mine don’t have such terms, neither does the givernment’s model template agreement.' Would you mind sharing what is your approach to comply the GDPR?

                          Comment


                            #14
                            Originally posted by SpringGreen View Post
                            Would you mind sharing what is your approach to comply the GDPR?
                            Register with the ICO, have and issue a data policy to new tenants.
                            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                            Comment


                              #15
                              Originally posted by SpringGreen View Post
                              It is a bit clearer for me now especially with all the new paper work which needs to be done. Is this a new requirement to have a new inventory to be done when signing a new TA?....
                              Without an inventory & photos of the place at start of new tenancy with deposit, how else would you prove there has ever been any damage or, indeed, that tenant hadn't stolen half the contents, when tenancy finally ends & you do check-out inspection?

                              Think about it: Several years time tenancy ends: 3 of 6 dinning room chairs have gone & the carpets covered in gloss-paint blobs & hot iron marks: Without an inventory & photos, both signed off by tenant, how would you convince deposit scheme adjudicators that there had been any damage/theft?

                              Do you have an inventory & photos from when current tenancy started?

                              Done any training in how do be a landlord?
                              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                              Comment

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