Renewing an AST and the deposit?

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  • Renewing an AST and the deposit?

    My tennant's AST for a year will expire in two weeks. The original agent that drew up the AST has been taken over and they are responsible for the original deposit via the DPS.
    If I draw up a new AST (the existing tennant is happy to stay for a further year)what do I do about the original deposit which I do not have control of? I don't think I can ask for another deposit for the new AST

  • #2
    Open a free account at the DPS. Ask the agent to transfer the deposit to your account. Continue as normal.

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    • #3
      Originally posted by bigknickers View Post
      My tennant's AST for a year will expire in two weeks. The original agent that drew up the AST has been taken over and they are responsible for the original deposit via the DPS.
      If I draw up a new AST (the existing tennant is happy to stay for a further year)what do I do about the original deposit which I do not have control of? I don't think I can ask for another deposit for the new AST
      No, you can't ask for another deposit. The new AST will be a replacement tenancy, and the deposit the T originally paid will continue to be held as security in respect of the replacement tenancy. You don't even need to open a DPS account yourself, you could just advise the agent of the details of the replacement tenancy so that they can update the DPS records.

      It's also not essential to grant a new fixed term. If an AST tenant is in occupation at fixed term expiry, and no renewal contract is agreed, a statutory periodic tenancy (a.k.a. rolling contract) will automatically arise under s.5 Housing Act 1988, replacing the expired fixed term tenancy. In effect, the tenancy continues, under the same terms as the fixed term tenancy, except for any provisions in the contract relating to notice.

      Of course, when a tenancy is periodic the T may serve notice to quit (at least a month) at any time so you may prefer the security of a new fixed term. But the T is under no obligation to agree to enter into a new fixed term contract.

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      • #4
        Thanks for your replies, I like the idea of doing nothing and letting the tenancy roll on on a periodic basis BUT, if I go down that route and the tennant decides to stop paying rent, will I still be able to evict or will the court say no AST no evict?

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        • #5
          There will be an AST, see Westminsters 2nd paragraph.

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          • #6
            Superb! thanks Snorkerz, I have a DPS account, so I'll ask to have the deposit transferred into my account on AST expiration.

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            • #7
              Originally posted by bigknickers View Post
              I like the idea of doing nothing and letting the tenancy roll on on a periodic basis BUT, if I go down that route and the tennant decides to stop paying rent, will I still be able to evict or will the court say no AST no evict?
              The periodic tenancy would still be an AST. A periodic AST instead of a fixed term AST.

              Under current, post-Housing Act 1988 tenancy law, there is no possibility that you would not be able to evict a tenant, regardless of the tenancy status.

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              • #8
                Great! many thanks Westminster

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