Deposit query, 4 students 1 leaving, 1 coming what do I do

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    Deposit query, 4 students 1 leaving, 1 coming what do I do

    I rent a house to 4 students through one AST agreement which ends 30 June 2010. 3 of the students wish to stay on for another year but one wishes to leave, the 3 remaining students have found a fourth student that is happy to move in.

    The 4 student deposits are all named under one agreement with the DPS.

    Please advised on how the deposits can be managed with minimal hassle for myself and the tenants.

    #2
    Closing inventory for original tenants, refund deposit to 'lead tenant' to divi up as appropriate.
    New AST
    New inventory signed by all 4 new tenants
    Full new deposit, presmably 3 x ¼ from originals and one new ¼.

    Comment


      #3
      that was my fear having to go through it all again. need to get them signed up now for tenancy starting in Sept, I hope their cash flow is good as they are not due their first deposits back until July! but thanks !

      Comment


        #4
        Is it not possible to

        (i) leave the current joint deposit where it is
        (ii) take a deposit from the new person at the start of the new tenancy and issue receipt as normal
        (iii) inform the DPS that one tenant has changed and supply them with the new name (you may not even have to do this if they only have lead T's name anyway) and ask fr deposit to be re-protected for a tenancy renewal
        (iv) use new T's deposit to reimburse the departing tenant

        ?

        This way, you don't have to go through the whole rigmarole of physically getting it released then re-protecting it.
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

        Comment


          #5
          Originally posted by mind the gap View Post
          Is it not possible to

          (i) leave the current joint deposit where it is
          (ii) take a deposit from the new person at the start of the new tenancy and issue receipt as normal
          (iii) inform the DPS that one tenant has changed and supply them with the new name (you may not even have to do this if they only have lead T's name anyway) and ask fr deposit to be re-protected for a tenancy renewal
          (iv) use new T's deposit to reimburse the departing tenant

          ?

          This way, you don't have to go through the whole rigmarole of physically getting it released then re-protecting it.
          Surely, new T would render this a new AST, and therefore the deposit would need re-protecting?

          Wih regard to OP and his students cashflow.

          If Students agree to release full deposit to landlord, then the landlord would perhaps be able to not take new deposit from the original 3 until the original deposit was returned. If you took a deposit from the new one before then, that would need to be protected on its own immediately.

          Comment


            #6
            There could be an Assignment between L of first part, departing person of second part, continuing people of third part, and new person of fourth part.
            That way, the same tenancy survives (so no new Agreement or deposit protection).
            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).

            Comment


              #7
              The deed of asignment is probably the best way to go as the DPS will not do anything remotely complicated and in my experiance are pretty clueless.

              Comment


                #8
                Okay, I'll go with that - unless the departing tenant is the one specified as 'lead tenant' on the DPS paperwork.

                Comment


                  #9
                  When is the change taking place?

                  Comment


                    #10
                    Originally posted by Snorkerz View Post
                    unless the departing tenant is the one specified as 'lead tenant' on the DPS paperwork.
                    Even if he/she is, so what?
                    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).

                    Comment


                      #11
                      Originally posted by jeffrey View Post
                      Even if he/she is, so what?
                      The deposit will be returned payable to the lead tenant, not the landlord.

                      Comment


                        #12
                        Originally posted by Snorkerz View Post
                        The deposit will be returned payable to the lead tenant, not the landlord.
                        So the Assignment ought irrevocably to bind the lead tenant, providing authority for deposit refund to the others.
                        He/she might also usefully sign a mandate (addressed to the deposit-holder) confirming that.
                        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).

                        Comment


                          #13
                          Originally posted by jeffrey View Post
                          So the Assignment ought irrevocably to bind the lead tenant, providing authority for deposit refund to the others.
                          He/she might also usefully sign a mandate (addressed to the deposit-holder) confirming that.
                          Agreed - but if lead tenant is uncontactable, or doesn't compy with the agreement it is going to become messy with claim and counterclaim. Which is exactly what OP wanted to avoid.

                          Reclaiming the initial deposit, and then re-protecting in the correct names when it is refunded must be simpler.

                          Comment


                            #14
                            But:
                            a. the lead tenant must be party to the Assignment; and
                            b. that risk of messiness is precisely why you need his/her joinder (+ mandate).
                            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).

                            Comment


                              #15
                              Whatever happens, make sure you have a full inventory done at the changeover, otherwise you won't ever be able to pin damage on any individual.

                              Comment

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