How to return part of the deposit?

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  • KTC
    replied
    Originally posted by jpkeates View Post
    The constraints on the value of a deposit don't affect existing leases.
    There is no need (or indeed mechanism) to do that..
    We're not talking about an existing tenancy. The OP wants to agree a new tenancy which will start after the Tenant Fees Act come into force. It is expected the Act will apply from June to all new tenancies (probably not including SPT arising from a fixed term granted before June). Landlords will be required to reduce existing deposit down to the 5 weeks amount for any new tenancies.

    Originally posted by Pergola View Post
    DPS says they cannot release part of the deposit, only the full amount and if I want to retain most of the deposit, I'd have to make a claim for it and then reregister it once my claim was approved and I'd received the funds. However, there would be a short window when the tenants would be in the property and the deposit would be unprotected - not ideal. Other option is to return it in full to the tenants and rely on them to then send the funds to me to be reregistered. Also not ideal as tenants already occupy the property. What do you advise?
    Get the tenant agreement as part of the new tenancy that you can have 5 weeks worth of the deposit which will be used as the deposit for the new tenancy. Use that agreement to get DPS to pay you the 5 weeks worth, and 1 week to the tenant, then reprotect it. You'll have to give PI again. Just be careful that all this is done within 30 days of the new tenancy / DPS paying out.

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  • jpkeates
    replied
    The constraints on the value of a deposit don't affect existing leases.
    There is no need (or indeed mechanism) to do that.

    The inventory/condition report is simply a document recording the condition at the start of the lease.
    Unless the renewal agreement specifically mentions it, there's no need to make reference to it.

    For the avoidance doubt, there's no actual need to renew anything, the lease continues anyway (unless the tenant moves out before the end of the fixed term).

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  • Pergola
    started a topic How to return part of the deposit?

    How to return part of the deposit?

    Tenants provided deposit equivalent to 6 weeks rent which was registered with the DPS. Tenancy ends in July, tenants want to renew. My understanding is that after June 01, the deposit cannot exceed 5 weeks rent so I have to return to tenants part of the deposit.

    DPS says they cannot release part of the deposit, only the full amount and if I want to retain most of the deposit, I'd have to make a claim for it and then reregister it once my claim was approved and I'd received the funds. However, there would be a short window when the tenants would be in the property and the deposit would be unprotected - not ideal. Other option is to return it in full to the tenants and rely on them to then send the funds to me to be reregistered. Also not ideal as tenants already occupy the property. What do you advise?

    On a separate note, this will be my first renewal. How do I ensure that the initial inventory can later be relied on at the end of the renewed tenancy and that the DPS don't consider it an unrelated document. Should my renewal lease make clear the property should be left in the condition set out in the earlier inventory (W&T excluded)?

    Thanks

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