13:29 PM, 10th June 2021, About A year ago 13
I would like to seek the views and experiences of landlords on a particular deposit protection issue that I have come across. I have recently increased the rent on a property, which is on a rolling contract for couple of years now. The amount of increase was following conversation with and agreement from the tenant. Therefore, no issue with the rent increase.
Although the rent has been increased, the deposit remains the same as the original amount. The deposit was duly protected with one of the reputable companies at the time of original tenancy and all relevant documentations served, signed and recorded.
The question I have is whether there is a need for the deposit to be re-protected. I have conflicting views from NRLA and the company which protects the deposit. The latter is of the view that ‘the law is not clear on this matter; however, we view this as a material change in the tenancy and therefore there is need for the deposit to be re-protected; ……and this is our company’s policy’.
The reason for this query is two-fold: firstly, re-protecting the deposit involves costs and admin work for the landlord; secondly, what would be the rationale for re-protecting a deposit which is already protected and there has been no increase in the figure?
I am hoping that views and experiences of landlords would help us all in this matter.
Previous ArticleVAT when transferring small office to an LLP?