First and last month advance rent instead of a Deposit?

First and last month advance rent instead of a Deposit?

9:56 AM, 10th September 2013, About 11 years ago 21

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I was talking to a friend of mine at the weekend who has one property she lets out and I asked which deposit scheme she uses.

She said she doesn’t take deposits, claiming it’s not necessary if you apply the “first and last month rent up front” method. First and last month advance rent instead of a Deposit

Although I’ve worked in the lettings industry I’ve never heard of this before – is she walking a dangerous line if she ever wanted to issue a S21 if she’s never provided any Prescribed Information, which she won’t have if she doesn’t consider it to be a deposit, or risking a punitive fine if she has a savvy tenant?

If it is acceptable, when could a S8 be used if the last month is paid in advance? If the AST goes periodic how is the last month determined?

Alternatively, is this an old practice which is now no longer acceptable and she urgently needs to be updated?

I look forward to reading your thoughts


Tilly Mint

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Mark Alexander - Founder of Property118

17:44 PM, 17th September 2013, About 11 years ago

..... and that's why education based landlords accreditation should be compulsory with the only alternative being to employ the services of a letting agent accredited by the likes of RICS or ARLA, neither of which are perfect but at least they have PI insurance and client money protection.

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