Rental Contract - Crafty or Illegal!?

milliebear00001

Hi there

Just wondered if anyone had come across this. We currently rent from a development company. We have a rolling contract and when we signed up to this we paid the usualy one month's deposit (safely banked with a scheme) BUT the LL asked for two month's rent in advance. Clearly, this is just a way of avoiding having to go to arbitration in case of a dispute over the deposit at the end of our tenancy - the contract states we will have the extra month's rent reimbursed after we leave subject to bills being settled and house in good nick. Any views on the legalities of this?

Ta muchly for any views.

poppysarah

2 more months in advance making 3?

It's a deposit by ny other name.

real1314

2 months in advance means 2 months in advance. When you decide to leave, you stop paying rent 2 months before the date you intend to leave.

If they ask for rent for the final month, ask for it in writing, then go for them for failing to protect a deposit. (you could possibly do this as it stand if the contract wording is as clear as you say - that it will be returned after the end of the tenancy).

milliebear00001

real1314 wrote: »

2 months in advance means 2 months in advance. When you decide to leave, you stop paying rent 2 months before the date you intend to leave.

If they ask for rent for the final month, ask for it in writing, then go for them for failing to protect a deposit. (you could possibly do this as it stand if the contract wording is as clear as you say - that it will be returned after the end of the tenancy).

I had thought I might do this, but the contract states that we cannot withhold the final rent in this way. Seems like an unfair T&C to me, but then I'm no lawyer!

Doozergirl

They're asking for a deposit. It's not rent if they say they'll give it back to you.

If tey are calling it rent and you don't pay the last month then it's totally legal for you to do that. It's not witholding rent as you've already paid it. There's nothing they can do about it -if they took it to court (which they can't because you'd have moved out by that time anyway) you are merely letting the rental period you have paid up to, run out.

They can't argue you're using the deposit in lieu of rent as it's not a deposit if they haven't registered it now is it? Of course what they've written isn't worth the paper it's written on. Do what you feel is best.

milliebear00001

Sounds good. Thank you for all the advice. Never heard of a LL being cheeky in this way before!

andrewmp

August 15, 2008

The Deposit Protection Service refutes RLA advice

Following a Residential Landlords Association (RLA) statement advising
landlords not to take deposits from tenants, and instead to take two
months’ rent in advance, Kevin Firth, Director of The DPS, said:
“The Deposit Protection Service feels very strongly that the Residential
Landlords Association has failed to fully consider the consequences of this
advice.
“If landlords stop taking deposits from tenants they will effectively be left
without any protection should the tenant damage or mistreat the
property. Simply taking two months’ rent in advance in lieu of the last two
months’ rent, is inadequate.
“During the final 8 weeks of the tenancy, what motivation will the tenant
have to ensure that the property is properly maintained? It is simply
common sense that a landlord will be better protected with a deposit.
“We would strongly advise all landlords to better safeguard themselves
and their properties by ensuring that their tenants pay a deposit, which
can then be safeguarded for the duration of the tenancy.”
Visit www.depositprotection.com for more information on tenancy deposit
protection.

ends

tbs624

MillieBear -please email your MP, and contact Shelter with details of this. http://www.theyworkforyou.com/mp/
Shelter, 88 Old Street, London EC1V 9HU


Tenants must give examples of how and why the deposit protection legislation is not working in practice to adequately protect tenant's money, so that there can be pressure for amendments at an early stage.

Premier_2

As others have said, rent in advance is rent in advance.

If they've asked for 2 months in advance, you don't need to pay anything for the last 2 months of the tenancy (since you already paid it)

Furthermore, the money paid can only otherwise be used to pay for rent not paid when due - it cannot be used for delapidations as a deposit can.

The fact the contract states you will have the extra month's rent reimbursed after you leave subject to bills being settled and house in good nick, implies it is in fact a deposit and therefore comes under the terms of the TDS. Ask for details of the protection scheme the deposit/advance rental is being protected under. If such details are not forthcoming, apply to a county court to force the deposit to be protected.

chewmylegoff

milliebear00001 wrote: »

I had thought I might do this, but the contract states that we cannot withhold the final rent in this way. Seems like an unfair T&C to me, but then I'm no lawyer!

don't take this as gospel, but it sounds like you as you have paid two months in advance you wouldn't be withholding rent by not paying in the final month as long as you had given proper notice - how can you withhold something that you have already paid?

the contract clause sounds redundant. how are they going to enforce it? send a demand to you for unpaid rent? just point out that you have paid...

Incisor

Wot chewmylegoff says. Or if the no withholding rent clause stands, then the rent paid before hand is actually a deposit and should be protected.