Question about deposit more than 5 weeks

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    Question about deposit more than 5 weeks

    I have a rental property where we now have a problem with a tenant not paying the rent .The AST date is march 2018 for 6 month duration .I have not renewed it since so it is on periodic .

    at the time of the agreement the person offered 3 months rent as deposit as her history was sketchy and she desperately needed help .Any way my question is -Am I in breach of the deposit cap as I still hold the 3 month's deposit .It was entered in the TDS scheme at the time and still is .
    I am a member of NRLA so will call and get some advise but will appreciate any advise .Many thanks.

    #2
    If this is a deposit and not rent in-advance, then your in breach and you would need to return the amount back to the T.

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      #3
      I'm in a similar position. My tenancy agreement is dated June 2018 and I was advised by people on this forum that I was not in breach as the new regulations only came in in 2019. I think you are, therefore, ok.

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        #4
        Originally posted by mickey16 View Post
        at the time of the agreement the person offered 3 months rent as deposit as her history was sketchy and she desperately needed help .Any way my question is -Am I in breach of the deposit cap as I still hold the 3 month's deposit .It was entered in the TDS scheme at the time and still is .
        I am a member of NRLA so will call and get some advise but will appreciate any advise .Many thanks.
        No, you're fine.
        If you create a new tenancy agreement with a new term, it wouldn't be allowed, but the situation as you describe is fine.

        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).

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          #5
          After lots of research and reading ,I am in agreement with you .It's a shame the ones responsible for the guidelines does not make it easy to decipher .This is why opinion varies. I appreciate your answer and help

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            #6
            Originally posted by jpkeates View Post
            No, you're fine.
            If you create a new tenancy agreement with a new term, it wouldn't be allowed, but the situation as you describe is fine.
            Many thanks .I was starting to doubt myself and what I was reading .Appreciate the feedback .

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              #7
              Originally posted by ash72 View Post
              If this is a deposit and not rent in-advance, then your in breach and you would need to return the amount back to the T.
              So with the feedback i m getting and my own research I believe you may be incorrect .My Ast started in March 2018 and became periodic 6 months later. It was never renewed . I kept her rent low as i knew she was struggling

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                #8
                Hi Folks ,I m just updating this post with what is definitely correct. In this case where the AST was not renewed and when the AST was granted I am allowed to maintain deposit over 5 weeks .If a new ast is granted only then will I be required to return any deposit above the cap .

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