Is this correct procedure?

  • Filter
  • Time
  • Show
Clear All
new posts

  • Is this correct procedure?

    My Uni student daughter and 3 friends saw a house for next September 2012. They were told by the agency that they need to pay £200 each holding deposit, which is absolutely fine. However in January they want them to pay £400 each, which they told them would be held in the deposit scheme and returned to them after the tenancy. As they told them this was to be held in the deposit scheme I am assuming this is the delapidations deposit as they were told that when the move in they will only be paying the one month rent in advance. Apparently the landlord and management of the agency decided to do it that way because the students will not back out if they have paid all this money as last year they were left with one empty property.

    I am a landlord and as far as I know, the deposit is taken at the commencement of the tenancy when it is signed.

    I have never booked a property 6 months in advance so I am wondering if this is correct procedure. It does not seem that the deposit scheme would take money for a tenancy that has not commenced.

    I would be grateful for any help on this matter. Thank you.

  • #2
    It can not be a tenancy deposit until the tenancy begins, so you are probably right about it not being 'protected' until the start of the tenancy.

    Doesn't make much difference, you could still have to sue for the return of the deposit whether it is protected or not.

    By next September the localism bill is likely to have come into effect, so any deposit will be covered by the new 'stricter' rules.


    • #3
      Thanks for your reply, I suppose what I am really saying is: Can they ask for this money legally so far in advance, they have the £800 for holding. I have questions but don't want to really get involved as they are young adults but I also don't want them taken for a ride because they have not done this before.


      Latest Activity