Keeping deposit after tenant didn't want to move in

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    Keeping deposit after tenant didn't want to move in

    Hello everyone,

    This is my first post ever here so sorry if it's not correct in any way.
    i have signed an tenancy agreement with a tenant and they paid the deposit. Then a day later they said if they can delay the tenancy for a week then move in as they were having issues finding someone to rent their place... Now they don't want to move in a week later after their original move in date.. I have lost money and potential others tenants. Can I keep their deposit ? I have put this in their contract that If the tenant does not move in on the date stated then I will not be returning their deposit.
    This is in Scotland so I know the law is different in England ( i think) please advise would be greatly appreciated.

    Thank you

    David .

    #2
    If you have an actual contract (as opposed to a holding deposit situation) you should always take any initial payments as part (or complete) payment towards the first month of rent, and then deposit later. The tenant owes you for the full six months as it stands, although you need to mitigate your losses.

    But the way you have done it you **probably** have to return the full deposit if they don't move in and then sue for any losses.

    Comment


      #3
      Originally posted by AndrewDod View Post

      But the way you have done it you **probably** have to return the full deposit if they don't move in and then sue for any losses.
      It's a bit pointless taking a deposit if that's the law, isn't it Andrew?

      Comment


        #4
        Return the deposit: IMHO never sign tenancy until rent & deposit paid & all checks run (or had tenant also paid full rent?). Tenants can give notice after 28 days anyway so they've got a quick get-out.

        Done any training in landlord/tenant law David? e.g. the free-2-SaL-members LaS courses? see..
        https://www.landlordaccreditationscotland.com/courses/
        - perhaps Tenancy Agreements & Notices?

        Slàinte (hath!
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          Originally posted by theartfullodger View Post
          Return the deposit: IMHO never sign tenancy until rent & deposit paid & all checks run (or had tenant also paid full rent?). Tenants can give notice after 28 days anyway so they've got a quick get-out.
          Yes but sometimes the agreement (contract - as opposed to a holding deposit) is made long before the tenancy starts.

          If I sign a contract say 2 months before the tenancy, I generally take only the first month of rent, and then the deposit closer to the time.

          But the keys certainly won't be handed over until the deposit is paid.

          Anything wrong with that?

          This way if they bail out, I am not dealing with deposits at all -- I re-let the place as soon as I can to mitigate my losses and subtract any difference from the actual RENT they have paid, and refund the balance (if any). They have not paid a deposit, only rent under contract so far.

          Problem? Otherwise if it is I will have to take the whole lot two months in advance. My earlier point was that if I reverse this and take the deposit first it seems messy to assist them to escape.

          Comment

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