Can you take a deposit by installments?
8:50 AM, 25th June 2015, 11 years ago
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We have a potential new tenant who can’t afford to pay the whole deposit (of £400) and the first month’s rent (of £400) up front.
She has asked if she can pay the deposit in installments – £100 per month.
If we went down this route, would we protect the deposit at the end of month 4?
We are wondering if it might be better for her to pay the deposit up front and then pay us weekly for the first month or so?
Any advice would be appreciated.
Thanks
Pam
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Member Since February 2011 - Comments: 3453 - Articles: 286
8:55 AM, 25th June 2015, About 11 years ago
From the MyDeposits website:
Q. What happens if I take the deposits in installments?
You must protect the full amount of the deposit upon receipt of the first installment.
Member Since March 2015 - Comments: 1969 - Articles: 1
9:25 AM, 25th June 2015, About 11 years ago
Penalised for doing someone a favour.
Member Since January 2011 - Comments: 12209 - Articles: 1406
10:10 AM, 25th June 2015, About 11 years ago
Hi Pam
In this business I’ve found that favours are seldom respected are very rarely returned.
The easy answer is to say no and keep marketing the property until a better prospect comes along. The cost of a rental void whilst you do so will pale into insignificance in comparison to taking on a bad tenant who refuses to pay, wrecks the property and plays every trick in the book to delay eviction.
If in doubt say no unless:-
1) You can purchase RGI and/or
2) They can get a working homeowner to stand as guarantor
Think of it this way, would you lend this person the equivalent of 12 months rent unsecured? If the answer is no then you have your answer to handing over your property to them because the reality is that that’s the potential loss you could be facing, possibly more.
.
Member Since October 2014 - Comments: 423
4:30 PM, 25th June 2015, About 11 years ago
They will probably lose interest in paying the deposit once they have what they want – ie your house. What could you do then? Not a lot I suspect.
Member Since June 2013 - Comments: 1121
6:03 PM, 25th June 2015, About 11 years ago
If they can’t afford the deposit they can’t afford the rent. Mark is right. Gut instinct on this is walk away. Once they’re in you will not see the rest of your deposit.
Member Since August 2013 - Comments: 883
7:51 PM, 25th June 2015, About 11 years ago
You do not have to protect the full amount from the start. You can protect as you receive it.
Some deposit schemes allow you to do just that.
However, as others have suggested, can they afford to rent your property if they can’t afford to pay the deposit?
Member Since October 2014 - Comments: 423
8:06 PM, 25th June 2015, About 11 years ago
Tell them no and move on. Don’t waste your time on them.
Member Since July 2013 - Comments: 193
9:07 AM, 26th June 2015, About 11 years ago
Same as everyone else.
Trust no-one.
Unless they can afford to pay 6 weeks deposit and a month’s rent upfront, don’t go near them.
Member Since July 2013 - Comments: 264 - Articles: 1
9:30 AM, 26th June 2015, About 11 years ago
if they cannot affort this small amount upfront then the chance of them paying it, and the rent later are somewhere between nil, ans zero.
Member Since August 2014 - Comments: 2
10:43 AM, 26th June 2015, About 11 years ago
Hi, I would never take a deposit by instalments for a flat or house, but I often split the security deposit over two months, when I let a room in an HMO,
It is entered on the AST, and worded that after full payment is received the deposit will be protected.
I have to say I have never had a problem doing it this way, but of course every situation is different and it depends on what I think of the person asking !!