Can deposit be used to pay last rent

sooz

amboy wrote:

OH and as from April LL cannot keep deposits, check the ODPM website to see the different schemes that we have to follow.

this comes into effect in October, and there are meant to be 2 schemes - one where the LL can keep the deposit, but has to take out an insurance policy as well to cover any disputes - at their own cost - but the tenant can have their deposit back on the last day of the tenancy, or one where the deposit is sent to a govt scheme [so far free to the LL] and the tenant will get their deposit back by cheque within 10 - 14 working days.

clutton_2

tenants who with-hold the last months rent are less likely to get a good reference for their next place to live.

bobalicious

clutton wrote:

tenants who with-hold the last months rent are less likely to get a good reference for their next place to live.

But the tenant will more than likely have found their next place to live by that point anyway!

Miss_Penny_Pincher_2

My letting agent said that I couldn't use the deposit as payment of the last months rent but when I had a private landlord before that he was fine with it even though he hadn't seen the flat - suppose it depends on the individual landlord. Just left the letting agency property about 8 weeks ago and they did agree to give me the whole deposit back. The contract said they would pay it back within 28 days of the tenancy ending - it was only after lots of persistence they finally paid it after 6 weeks - I wasn't about to let them steal another £450 off me!!!

Me_Myself_2

Depends what it says in your contract. Mine states that you cannot use the deposit for the last month's rent. Technically the LL could take you to court for it. It is irrelevant what happens to the deposit.

He could possibly keep the deposit if he has a legitimate reason to do so and still rightfully say you owe him one months rent and take you to court. The court would find in his favour as you do owe him a months rent. If you disputed him keeping the deposit you would have to take him to court separately.

As a LL I would be more inclined to look for legitimate reasons to withold (some or all) of the deposit if this happened to me, whereas I normally let minor things go and refund all the deposit on the day a tenant leaves.

Astaroth

You shouldnt use the deposit as the last rent payment but it is frequently done. Most places (here at least anyway) now ask for a month and a 1/2s deposit because too many people just dont pay the last rent and that at leaves 1/2 a months rent for the landlord to cover damages if there are any.

clutton_2

The new Act with regard to Tenants Deposits is summarised below and comes into force in September (although Scheme Administrators have not yet been appointed(.

The Custodial Scheme

Under a custodial deposit scheme, the deposit is held by a third party rather than by the landlord. The scheme will be run and managed by a private organisation, known as the ‘scheme administrator’, which will contract with the Government to run the scheme.

The custodial scheme will be available to all landlords to use and there will be no fee payable for its use.

Under the custodial scheme, all deposits will be held in a single designated bank account, which is managed by the scheme administrator. The interest generated on the deposits will be used to fund the running costs of the scheme.

At the start of the tenancy, the tenant will still pay his deposit to his landlord as happens now. However, instead of the landlord retaining the money, he will be required to pay it into the designated bank account. The deposit money will then remain in that account until it is dealt with in accordance with the scheme at the end of the tenancy.

Insurance-based Schemes

Whereas with the custodial scheme the money is held by a third party, under an insurance-based scheme the landlord continues to hold the deposit himself. If at the end of the tenancy there is no dispute, the landlord returns the agreed amount of deposit to the tenant. The landlord is only required to transfer to the insurance-based scheme administrator such part of the deposit amount that he and the tenant dispute is payable at the end of the tenancy.


BUT and more importantly you cannot get rid of tenants if you have not complied with the regs !!!


A landlord is prohibited from serving a notice requiring possession of the rented property, at the end of the term fixed by the tenancy if he has received a deposit but has not complied with the requirements to:

a) safeguard it under one of the 2 authorised tenancy deposit schemes; and

b) provide the tenant with the prescribed information;

kaya

Well if your in your last month of tennency there is not a lot they can do about it is there! , i did it last time a moved, dodgy landloard, agent who charged us FOUR credit references whilst we lived there none of which were registered with a credit agency.