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2 Months' Rent Up Front - No Bond
Comments
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This relates to princeofpounds pointtheartfullodger wrote: »I think it is a month's rent & 1month's rent as deposit.
See the law on the matter...
http://www.legislation.gov.uk/ukpga/2004/34/part/6/chapter/4
Section 213 (subsections 7 & 8)
So, Agent/landlord can call it what he likes, but as far as the law is concerned, IMHO, the "2nd" month;s rent is a deposit.
See support for my view here...
http://landlordlaw.blogspot.com/2009/02/advance-rent-deposit.html
Others may hold differing views...
If you are expected to pay rent in the last month, effectively paying rent for a month you've already paid rent for via your 2 months in advance, with the expectation of it being returned to you when you move out, then yes, both Artful and prince are correct - this is a deposit.If it's just 2 month's rent in advance, fine. If it's 2 month's rent in advance at all points, even when you have less than two months to go, and the excess will be returned to you, then that it a deposit
But if you are just paying rent further in advance than normal, and hence STOP paying further in advance of your moving out date, such that you are up-to-date with rent on expiry of the tenancy, then that is not a deposit.
Hence my original points about clear written confirmation that the money is RENT.0 -
Nah (IMHO): Tenant moves in then sues LL for 3xdeposit for not protecting deposit!! Result - either deposit get's protected and case dismissed or tenant wins 3xdeposit & is then 2xmonth's rent ahead...probably with S21 notice also,,...0
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or court dismisses tenant's claim due to there being no deposit to protect.theartfullodger wrote: »Nah (IMHO): Tenant moves in then sues LL for 3xdeposit for not protecting deposit!! Result - either deposit get's protected and case dismissed or tenant wins 3xdeposit & is then 2xmonth's rent ahead...probably with S21 notice also,,...0 -
I wouldn't deal with a LA or LL that thinks this scheme is a good idea. How unprofessional not to take a deposit and secure it.
If I was the OP, I would insist in writing that it is 2 months rent being paid before agreeing to take it on, no matter how much you love the place. Good luck.
"Life is difficult. Life is a series of problems. What makes life difficult is that the process of confronting and solving problems is a painful one." M Scott Peck. The Road Less Travelled.0 -
I have this arrangement in place. My landlord took two months as a 'deposit' which in effect pays the last two months of my tenancy. So in reality there is no deposit in any scheme but I don't pay the last two months. I didn't see any problem with this as if and when I move and need a deposit for the next place the rent I don't pay will pay for this and I won't have any 'the landlord wants all my deposit' malarky because there isn't any.
It is written down as part of the tenancy agreement that this is the way the 'deposit' is being used so everyone knows where they stand.0 -
I'd be interested to see he wording of this.crumblepie wrote: »I have this arrangement in place. My landlord took two months as a 'deposit' which in effect pays the last two months of my tenancy. So in reality there is no deposit in any scheme but I don't pay the last two months. I didn't see any problem with this as if and when I move and need a deposit for the next place the rent I don't pay will pay for this and I won't have any 'the landlord wants all my deposit' malarky because there isn't any.
It is written down as part of the tenancy agreement that this is the way the 'deposit' is being used so everyone knows where they stand.
Although it may be described as a 'deposit' clearly it isn't, provided it is stated that this money will "pays the last two months of my tenancy."
That is rent.
Does the agreement say anything about deductions from it for damage?0 -
It is rent up front - that's why I used deposit in quote marks. Even though he called it a deposit but then it actually is rent up front. Sorry for confusion.
I also know that I'd have to give two months notice not one as the rent money has been paid in advance. Can't remember exactly the wording on the agreement but it was under the title of RENT ADVANCE - rather than DEPOSIT HELD IN SCHEME _____ .
He didn't say anything specific about damages and I can't remember what the agreement says about that.0 -
crumblepie wrote: »I also know that I'd have to give two months notice not one as the rent money has been paid in advance. Can't remember exactly the wording on the agreement but it was under the title of RENT ADVANCE - rather than DEPOSIT HELD IN SCHEME _____ .
It depends how is the wording related to the rent advance and to the periodicity of rent...0 -
crumblepie wrote: »I have this arrangement in place. My landlord took two months as a 'deposit' which in effect pays the last two months of my tenancy. So in reality there is no deposit in any scheme but I don't pay the last two months. I didn't see any problem with this as if and when I move and need a deposit for the next place the rent I don't pay will pay for this and I won't have any 'the landlord wants all my deposit' malarky because there isn't any.
It is written down as part of the tenancy agreement that this is the way the 'deposit' is being used so everyone knows where they stand.
"Took two months as a 'deposit' which in effect pays the last two months of my tenancy (rent I assume).
So, is it a deposit or is it rent?
If rent, does that mean that there is no deposit and you can damage the property as you see fit and,in addition, the LL can't get you out because he has already accepted rent for the last two months? Is the LL mentally capable? Someone help me on this one.FREEDOM IS NOT FREE0 -
If rent, does that mean that there is no deposit and you can damage the property as you see fit and,in addition, the LL can't get you out because he has already accepted rent for the last two months? Is the LL mentally capable? Someone help me on this one.
In my case - it is rent- my fault for using the word deposit but i thought I'd clarified that.
And yes in my case there is no deposit held in a scheme.
And yes if I suppose I wanted to smash the place up, sell all the copper fittings, rip out the boiler, central heating and kitchen I could...there's no deposit to take any damages from...
.... i presume he would take me to small claims or try and get money out of the guarantor if that happened...0
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