Deposit transfer

[Flynn]

I’m currently looking for a new tenant (not using an agent). Something a prospective tenant has mentioned is the deposit being transferred from their current tenancy to their new one via the DPS.

Has anyone had experience of this working in practice, I’ve read online about the concept of ‘lifetime deposits’, but how is this possible? The existing landlord cannot properly inspect and decide whether to release the deposit in part or in full until after the tenant vacates. I need the deposit in full before they move in. So if there is no gap between tenancies, how can the existing landlord be expected to release the deposit before a full inspection, and how can the new landlord rely
on it arriving in full when there could be disputes of the tenant lies and doesn’t ask for it to be transferred…meaning that they move it without having paid the deposit.

Also, I’m not sure it is great thing for landlords, if a prospective tenant is unable to source a fresh deposit, even if it means temporarily putting it on a credit card while they await the return of their previous deposit, it means they have no access to credit and are living fairly hand to mouth. I can see a transfer could be tidy for admin reasons, but how is it helpful for landlords? It seems to me it means potentially taking risks as you don’t have that money in your account/DPS well in advance of move in day.

[DoricPixie]

As you’ve pointed out, even if it is possible, it isn’t practical. The current landlord won’t release the deposit before you’d want it ie before the tenancy starts. Sounds to me like the tenant hasn’t saved up a deposit in anticipation for the move.

[jpkeates]

You'd be dependent on the landlord transferring the deposit (assuming it's possible).

I use the DPS, but don't want to mess up my account trying to see if it's possible.

[jpucng62]

I don't think this is possible and I don't think I would want a tenant who is so short of cash they can't stump up the deposit.

The lifetime deposit has got to include some sort of insurance to cover the short fall & the details have not been worked out yet. Bottom line is - its going to cost the tenant more!

[jpkeates]

The lifetime deposit has got to include some sort of insurance to cover the short fall & the details have not been worked out yet.

I haven't been able to figure out how it's meant to work.
I might be just being a bit thick, but I've spent some time trying to figure it out and failed.

I can see how it would be possible to transfer the money if there's a custodial scheme being used, but not otherwise.
And never before the end of the old tenancy, which is going to be after any new tenancy begins.
And if there are deductions being requested, that doesn't work at all.

[theartfullodger]

The current landlord could (probably?) agree to release deposit early before end of tenancy , but why would a prudent landlord do that??

Basic guidelines I follow is without rent & deposit paid, cleared funds, nothing gets signed or promised.

[NaomiB]

I can't see that it is practicable for a tenant to have to wait until he or she has left the property to get hold of the deposit. I have told my tenant that when she has found somewhere else to live then I will give her back the deposit to give to her new landlord. My main concern is to get the flat back so that I can sell it.

It may be different if you are aware that your tenant has caused damage or is in arrears.

[jpkeates]

My main concern is to get the flat back so that I can sell it.

And in that situation that seems a sensible thing to do.
You want the tenant to move on and it's in your interest to help them.

But most (non student) tenancies are ended by the tenant serving notice and moving out.
And, while most tenancy deposits are returned whole, not all of them are, and it seems a gamble for a landlord to return it early when there's no benefit to them doing that.

[DoricPixie]

I can't see that it is practicable for a tenant to have to wait until he or she has left the property to get hold of the deposit. I have told my tenant that when she has found somewhere else to live then I will give her back the deposit to give to her new landlord. My main concern is to get the flat back so that I can sell it.

It may be different if you are aware that your tenant has caused damage or is in arrears.

You aren't always aware until you get in to do the final inspection once the tenancy is over. A strategically placed rug or piece of furniture can hide a multitude of sins.

[jpucng62]

I can't see that it is practicable for a tenant to have to wait until he or she has left the property to get hold of the deposit. I have told my tenant that when she has found somewhere else to live then I will give her back the deposit to give to her new landlord.

And if your tenant leaves behind damage or dirt? I would never give a deposit back until the tenant has left - until you do a post tenant inspection a multitude of hidden costs may remain unseen.

Unfortunately, the deposit transfer is just another cost of being a tenant. I accept it is hard to raise the funds for effectively 2 deposits but until tenants start leaving properties in the condition they took them over in it is a necessary part of the process.

Point in fact: nice young family have just left a property after 2.5 years - house is filthy; oven is filthy; cupboard door & door handles broken; bathroom mouldy; hole in new carpet; blown bulbs; garden unkempt. They won't be seeing much of their deposit I'm afraid!