Student Rental Deposit Question

tom9991

Hi,

Basically a group of 5 students decided to get a 11 month Assured Shorthold Tenancy rental property together a few months back. All 5 of the students paid a security deposit which is held by The Deposit Protection Service.
One of the students decided to drop out and I'm now moving into the property. When moving into the property the estate agents told me I have to pay one months rent in advance and a admin fee. They said nothing to me about a security deposit.
However the student that dropped out contacted me yesterday saying he wants his deposit back. Is this right? Surely he will lose it because he dropped out????!

N79

Complex

Basically, assuming the tenancy is being assigned to you then you need to pay the outgoing T their share of the security deposit. This is because there is no new tenancy so the original deposit remains.

However, you should first check the status of the house vs the initial inventory and deduct any amount you believe the outgoing T should be liable for. Also document in writing that you are paying this amount to the old T and get a receipt.

You will then get your money back from the original deposit when the tenancy ends, assuming there are no deductions for damage or other contract non performance.

tom9991

N79 wrote: »

Complex

Basically, assuming the tenancy is being assigned to you then you need to pay the outgoing T their share of the security deposit. This is because there is no new tenancy so the original deposit remains.

However, you should first check the status of the house vs the initial inventory and deduct any amount you believe the outgoing T should be liable for. Also document in writing that you are paying this amount to the old T and get a receipt.

You will then get your money back from the original deposit when the tenancy ends, assuming there are no deductions for damage or other contract non performance.

OK thanks for the reply!!! At the moment im unable to afford to pay the deposit back. Is there a specific time frame to return the deposit? or can you make them wait a few months?!

N79

It should be repaid now as it is owed but noone can be made to pay money they don't have. Negotiation is the way forward.

greensalad

Deposits can only be held back for loss of money, so as you're taking over the tenancy and the LL isn't losing any money, the deposit can't be taken.

In essence, because it's a joint tenancy, it's seen as one big deposit, not 5 little ones. There is enough money in the deposit pot for the entire property so the LL should be happy. However, as expected, the leaving tenant wants his deposit back. Rather than him getting his deposit back from the LL and then you replacing it, it's easier if you give it direct to him.

That's all fine however make sure you tell the LL and the DPS and get it in writing from ALL parties (including you and the other student) that the money has been transferred, to save upset when you claim your deposit back. The DPS needs to know especially as they will still have the deposit amount in the leaving tenants name, and it needs to change to yours, else the leaving tenant could still try and claim back the deposit at the end, thus getting the deposit twice and leaving you with none!

nigem

My son had a similar issue last year. He joined the other tenants as a replacement. The agent took a deposit and refunded the proportion of their deposit to the outgoing one.

However at the end of the joint AST, the LL wanted to retain the whole of the deposit to repair and clean etc. The repairs were needed, but damage happened BEFORE my DS moved in. No new inventory was taken, and the check in inventory was the original, 5 months before he moved in.

He took the case to TDS to arbitrate, and they refunded all but £70 to the three tenants. They had signed a new joint AST when DS joined but had no inventory redone.

It is a minefield, but watch out for being liable for issues that occurred before moving in, and losing your deposit.

tom9991

Cheers for the replies everyone!