Tenant wants to leave early and told me to use deposit for this months rent

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    Tenant wants to leave early and told me to use deposit for this months rent

    Tenant is 6 months into a 12 month AST and has got in touch with me to say she has just been sacked and so cannot afford the rent any more.
    She wants to terminate the contract but intents to use her deposit as what will be her final payment(due 7th Jan).

    I have agreed to let her terminate early but how do I go about keeping the deposit as its held with the DPS?

    Any advice please

    #2
    You make it a condition of your written offer of surrender (which you should have properly drafted) that she authorises the DPS to release her deposit to you in lieu of the last month's rent. She then contacts the DPS.

    If your contract states the deposit cannot be used for rent (check whether this is the case), then you will have to make it an agreed payment in acknowledgement of the early surrender offer.

    Either way, don't let her off the hook until you have the deposit money.

    What will you do if there is any damage or cleaning to be paid for when she vacates?
    '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


      #3
      TBH I think she just wants to get out without it costing her any more.

      She does have her grandfather as a guarantor on the AST and she was very keen not to get him involved when I told her he would be liable for remainder of contract so the threat of that will be enough so that she leaves without any damage Id say.

      Just want speedy resolution with current tenant to get property relet.

      What would happen if I contact DPS rather than waiting for her to do it?

      Comment


        #4
        You could contact them and ask for the whole deposit to be paid to you - they would then contact your tenant and ask if she authorises that. She needs to say yes, of course. She might not. That's why you need a properly drafted Deed of Surrender making it a condition that she does agree.
        '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
          would this be ok to use as a template deed of surrender

          http://www.consumeractiongroup.co.uk...d-of-Surrender

          with addition condition that you have said?

          Comment


            #6
            You really need a lawyer to comment on that.

            Where do you propose to add the condition and how would you word 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


              #7
              thanks for your advice so far.
              After speaking to tenant she has agreed to move out with immediate effect once rent is due(mon 7th)
              She has agreed to the idea of a deed of surrender to be signed on Monday with clause that the money held in DPS is also mine and that if I get tenant quick will refund her whatever is due to her.

              Comment


                #8
                That sounds promising, but

                (i) who has drafted/will draft the clause about the deposit in the Deed?
                (ii) does it contradict any stipulations in the tenancy contract about how the deposit may be used?

                Please answer these questions.
                '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


                  #9
                  T is actually getting off very lightly indeed, and you are giving something for very little.

                  You are picking up all the costs of re-renting without compensation.

                  And in addition you have no money left to claim against for damages and delapidations.

                  It would be reasonable to request that the deposit is kept to be the deposit, that the rent is paid until departure, and that you should get a sum to compensate you for the costs of reletting. And it is at a quiet time of year.

                  What is your cost to relet?

                  My minimum would be about £300-£400 plus the loss of void rent and cost of cleaning etc, unless I got lucky.

                  It's your right to do it, but be aware.

                  ML
                  Refer Mad Regulators to Arkell vs Pressdram.

                  Comment


                    #10
                    What you need is not an agreement by the tenant to release the deposit, but an actual release given at the same time as the tenancy is surrendered. If unsure how to secure this ask the company holding/guaranteeing the deposit.

                    Comment


                      #11
                      Contact the DPS now, and get the deposit released to you imediately.
                      There is no point in doing at a later date.
                      Allow tenants to protect their own deposits. I want free money when they do it wrong

                      Comment


                        #12
                        Thanks everyone so far.
                        The tenant has now moved out and left the house in good condition.
                        Re let should not be a problem Ive got 9 viewings lined up for Sunday/Monday after 4 days on Rightmove.
                        I have applied to the DPS for full return of deposit to myself and tenant agreed to this to cover my costs.I told her if there is anything left after my costs then I will return it to her.

                        Comment

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