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 January 2011 - Comments: 12217 - Articles: 1413
11:49 AM, 26th June 2015, About 11 years ago
Reply to the comment left by “Gary Botterill” at “26/06/2015 – 10:43“:
Hi Gary
That sounds dangerous to me.
If an ambulance chasing solicitor gets wind of that he will be hunting down your tenants over the last 6 years and suggesting they claim 3X the initial deposit on the basis that you didn’t protect it within the statutory period.
Best to start getting it right from now on, you can’t change what has already been done.
.
Member Since August 2014 - Comments: 2
12:05 PM, 26th June 2015, About 11 years ago
Checked it out with my Solicitor, he said as long as it was written in the AST that when the deposit was fully paid it would be registered, he said it would be ok
Member Since November 2014 - Comments: 8
12:08 PM, 26th June 2015, About 11 years ago
Its a risk from my experience I have tried this Three times and on all occasions the never end up paying the full bond/deposit.
With reference to writing in the agreement that the bond will be protected after the second month is paid, this can present a new problem
the bond has to be protected within 30 days of receipt otherwise the section 21 is invalid.
I would appreciate any expert clarification in these unusual circumstance regarding the 2 month situation.
Member Since March 2015 - Comments: 1969 - Articles: 1
12:52 PM, 26th June 2015, About 11 years ago
Reply to the comment left by “Gary Botterill” at “26/06/2015 – 12:05“:
Just because you write something down (in a contract or otherwise), doesn’t mean it is necessarily binding. I don’t think a Judge would be happy with you circumventing the intent of the law…
Member Since January 2011 - Comments: 12217 - Articles: 1413
12:57 PM, 26th June 2015, About 11 years ago
Reply to the comment left by “Gary Botterill” at “26/06/2015 – 12:05“:
I think your solicitor is wrong, but if he put that in writing at least you will be able to make a claim for any losses aginst his professional indemnity insurance 🙂
.
Member Since October 2014 - Comments: 423
1:20 PM, 26th June 2015, About 11 years ago
Gary, if ask the solicitor to put in writing what he said about protecting a deposit only when it is wholly received, I doubt he will do that.
Member Since July 2013 - Comments: 264 - Articles: 1
1:36 PM, 26th June 2015, About 11 years ago
best advice is think out of the box and do not take a deposit, save yourself all the hassle and risk. charge a fee instead.
Member Since October 2014 - Comments: 423
1:40 PM, 26th June 2015, About 11 years ago
Reply to the comment left by “Alan Loughlin” at “26/06/2015 – 13:36“:
Even better.
Member Since July 2013 - Comments: 197
1:41 PM, 26th June 2015, About 11 years ago
Is the would be tenant renting another property at the moment ? If so is a return of deposit expected shortly ? If she has not been able to save up a deposit before looking at your property it does not bode well for her future ability to pay you. Have you referenced her ? Required of course for RGI. Best advise has already been given – find someone else who can afford to pay. Regards.
Member Since July 2013 - Comments: 264 - Articles: 1
4:31 PM, 26th June 2015, About 11 years ago
strange that in most of the problems aired on these really helpful pages deposits seem to be at the centre, my previous comment was not a joke, this is what I do, and so avoid the majority of the potential issues, and penalties. The obvious advantages are money in bank, spend it as you see fit, no disputes over return of deposit, and no risk of falling foul of the impossibly complex, and anti-landlord rules.
I find it hard to understand why others just slavishly follow the old, outdated methods.