Council Bond and DPS now the rent has increased?

Council Bond and DPS now the rent has increased?

15:53 PM, 27th January 2022, About 4 months ago 2

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The council is just about to release money held in a deposit Bond which I now have to protect in the DPS scheme. The Bond is held with the Council as such time the tenant pays the total amount of it, to them (spread over 2 years).

At the time the deposit bond was 5 weeks rent, but in the last two years, the rent was increased. I have to deposit the bond money within 30 days, which I will of course do, but is there any way I can now increase the deposit to match the 5 weeks rent equivalent now?

I would have thought it was vital to ensure that the deposit level is maintained at the 5 weeks rent cap for precisely the reason why you have a deposit in the first place – to mitigate for rent areas/damages etc.

Do I deposit the original amount then explain this to the tenant and ask them to pay the difference, and how do I actually deposit this additional amount? Do I need to set up a ‘second’ deposit (is this even viable?) and serve the same docs for this in the same way as the first?

Many thanks

DSR



Comments

by Ian Cognito

14:28 PM, 28th January 2022, About 4 months ago

As far as I am aware, DPS now cater for thid and allow the original deposit to be added to.

If not clear online, then phone them.

by Chris Bradley

15:52 PM, 28th January 2022, About 4 months ago

This is an interesting question.
I always renew the tenancy annually so that I can stipulate an increase in the deposit along side the increase in rent.
I then have to take the increase in deposit from the tenant, and at the end of the old contract, the tenant releases the deposit funds back to me to resecure with the deposit scheme. Both the extra paid by the tenants and the returned deposit are held against the new tenancy.
If this is an ongoing periodic contract then I don't see how the deposit can be increased from the initial amount requested in the initial contract


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