Deposit

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  • Rano10
    started a topic Deposit

    Deposit

    My son is at University and is in shared private student accommodation. They signed for the tenancy a year ago with a view to moving in last August. At the time of signing each of the 5 had to pay a £500 deposit and a £90 admin fee. They moved in last July .They are currently in the house and are now signing up to keep the tenancy for a further year . They have been told to pay a second admin fee of £90 each and a second £500 deposit each ... I cannot understand this as the company still have their initial £500 deposit . Any advice gratefully received

  • DPT57
    replied
    Is it possible that your Son has just been sent the Agency's standard template letter asking for fee and deposit and that in this case the deposit doesn't apply?

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  • leaseholder64
    replied
    Did your son receive details of how the £500 would be protected, during July or August?

    The arrangement sounds fishy, but it is possible that the landlord thinks a £1,000 deposit is now necessary.

    Legislation expected to come into force next year will outlaw the £90 fee.

    Landlords on this forum would normally be advised to let the tenancy become an SPT, as a new tenancy rarely benefits the landlord. It gives the agent more fees and gives the tenant more security.

    If the deposit is in an insurance based scheme, it would need to be re-protected and new paperwork given to the tenant, but no money would flow between landlord and tenant. Generally insurance based schemes are the only ones where the landlord gets any benefit from the money during the tenancy.

    With student lets, if the exact set of tenants has changed, landlords are advised to start a completely new tenancy, in which case the deposit would need to be returned and claims for damage crystallised.

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