Does TDS Apply to Deposit Top-Ups?

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  • Does TDS Apply to Deposit Top-Ups?

    I very often ask tenants to increase the bond to a level equal to one months rent when I increase rent each year. It's usually in the order of £10-£20 topup. I don't renew the tenancy, I just let it run on as a monthly periodic. Do I have to worry about the TDS for these circumstances?

  • #2
    How can the rent be increased on an AST without signing a new tenancy?

    On periodic you can't increase the montly rent - or the deposit for that matter.

    Unless the tenancy was not AST in the first place !!!

    Strange scenario!

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    • #3
      If you increase the rent but keep the deposit at the same amount then you don't come under the scheme.

      If you increase the rent and take a top up then the deposit comes under the scheme as effectively you are varying the terms of the contract without stautory right to do so.

      Comment


      • #4
        Originally posted by sober View Post
        How can the rent be increased on an AST without signing a new tenancy?

        On periodic you can't increase the montly rent - or the deposit for that matter.

        Unless the tenancy was not AST in the first place !!!

        Strange scenario!
        ...by using the increase procedure under s.13 of Housing Act 1988.
        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).

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        • #5
          Thats good news as I just renewed my T´s AST with a higher rent & was goling to ask for a top up deposit. Seems for the sake of 50 GBP or so top up I don´t need to issue the separate notice re the deposit protection as outlined on another thread.

          Thanks for the advice, very useful.

          Comment


          • #6
            Originally posted by attilathelandlord View Post
            If you increase the rent but keep the deposit at the same amount then you don't come under the scheme.
            That's what I thought until a week or so ago - now I don't know as there is legal opinion that ANY CHANGE to a periodic tenancy creates a "replacement tenancy" and thus brings it under the scheme
            On some things I am very knowledgeable, on other things I am stupid. Trouble is, sometimes I discover that the former is the latter or vice versa, and I don't know this until later - maybe even much later. Because of the number of posts I have done, I am now a Senior Member. However, read anything I write with the above in mind.

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            • #7
              Originally posted by Esio Trot View Post
              That's what I thought until a week or so ago - now I don't know as there is legal opinion that ANY CHANGE to a periodic tenancy creates a "replacement tenancy" and thus brings it under the scheme
              I do not think that the s.13 increase procedure, if applicable, is a change to the tenancy as such. Please give authority for your opinion.
              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


              • #8
                Esio, a section 13 notice does not lead to a new contract.

                The reason you would come under the scheme if you upped the deposit to match the rent is because effectively you are handing back the old deposit and taking a new higher one.

                It is the taking of a deposit that triggers the scheme, not the signing of a contract or revising contract terms.

                That's why you would therefore come under the scheme.

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