deposit used as rent payment

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  • deposit used as rent payment

    i have a question if you dont mind

    i have a tenant who moved in 8 months ago

    they are hard up on cash and have requested to use their deposit as this months rent payment

    i have allow them to do this as i can see they are struggling

    should i re issue them with a new contract, back dating it to the date they moved in, with a nil deposit? is this normal and acceptable practice?

    i dont want them turning round at the end of the tenancy and them saying i owe them a deposit!

    and should i protect myself against future rental arrears by serving them a notice now?

    if so, which notice is best advised to serve them at this stage

    thank you as always!

  • #2
    Originally posted by WarwickGrad View Post
    they are hard up on cash and have requested to use their deposit as this months rent payment

    i have allow them to do this as i can see they are struggling
    Was this a verbal agreement, or was it written into the tenancy agreement?

    Please also confirm:
    1. Is tenancy an AST in England or Wales?
    2. Is annual rent less than £25k?
    3. Is any protectable deposit protected?
    4. When does fixed term of tenancy end?
    5. Is rent owed? If so, how much?
    6. How often is rent paid (weekly, monthly, etc.)?
    The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .

    Comment


    • #3
      I personally would not allow use of deposit in lieu of rent payment. As a result, you have to delay serving a section 8 notice for rent arrears for an extra month. Not smart. Too kind.
      1. Was the deposit protected in the first place?
      2. Have you put in writing the deposit use as rent?
      3. How/when are they going to replace the deposit?
      4. What are they spending money on if it’s not the roof over their head?
      5. What’s going to be different on the next rent period?
      6. Have they applied for benefits?
      Definitely do not issue a substituted, retrospective tenancy agreement.

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