Deposit or rent in advance/admin fee

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  • Deposit or rent in advance/admin fee

    Hi,

    We're new landlords, and would like some advice on how to treat the money we take from our tenant in advance.

    We have read up on deposits and how we need to register it with a scheme. We would like to avoid this if possible.

    Can anyone advise on the consequences of treating the payment as rent in advance? Should we do this? Can we do this?

    How can we protect ourselves as Landlords if the sum is not treated as deposit? Is there a way we can word the tenancy agreement so that this money can also be used to cover any potential damage caused by the tenant?

    We read that as Landlords, we could charge an "administration fee" to cover potential damage to property? Is this true and what are the consequences?

    Thanks!

  • #2
    You must protect the deposit, that's the law. One of the schemes is insurance based, you need to look it up. If you don't follow the correct procedures you are putting yourself at risk of paying out a large sum to your tenants. Read some of the horror stories on this site and elsewhere.
    I offer no guarantee that anything I say is correct. wysiwyg

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    • #3
      There are alternatives to deposit protection. See http://www.landlordzone.co.uk/forums...ead.php?t=9002.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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