Paying new deposit to outgoing tenant?

  • Filter
  • Time
  • Show
Clear All
new posts

    Paying new deposit to outgoing tenant?

    Hope someone can advise please..

    I am about to sign an AST agreement on a flat. I have been asked by the letting agent, to pay the deposit directly to the out-going tenant (so that they are reimbursed).
    I'm a bit concerned about this, because, previously I've paid the deposit to the agent, who then pays it into a deposit scheme.

    Am a worrying needlessly??.its just that I want to know that my deposit is being safeguarded and that I can easily get it back when i eventually move out.

    thanks all

    Best not to pay someone whom you do not know and who will now disappear from contact.
    Insist on paying L (or, at a pinch, L's Letting Agent) and that the deposit is protected as required by the Housing Act 2004.
    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
    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).


      I agree, pay deposit only to landlord or his agent. Providing deposit is subsequently protected by either then what the do with the physical cash (eg refund previous tenant) is up to them.


        Originally posted by Jolaaled View Post
        Am a worrying needlessly??
        No, you are not. It sounds really dodgy to me. Is the agent a member of a professional body such as ARLA or NAEA? (I ask because it is generally advisable to rent via an agent who is at least bound by an outside body's code of conduct and keeps client monies in a protected account). It also makes me wonder whether the agent has serious financial problems, has spent the outgoing T's deposit, and doesn't actually have funds to reimburse them.

        I'd insist on paying the deposit direct to the landlord; or you could maybe offer to transfer it direct to the DPS - though I have no idea if this is actually feasible, so you'd have to call to the DPS to ask. (If you pay it to the agent who's perhaps on the brink of financial collapse, then the LL may well not receive it and therefore be left out of pocket, as he's ultimately responsible for returning the deposit to you).

        If you pay it to the outgoing tenant, worst case scenario is that at the end of the tenancy the LL/agent claim that you did not pay a deposit - and you won't be able to prove you did, because you won't have paid to them but to an unrelated third party.


        Latest Activity