Deposit and inventory check

Mojisola

Names not the real people involved -

Charlie and Mike are renting a house through a letting agency.

Charlie is leaving and Rob is going to move in.

Rob has received this from the agency -

"Ideally you will pay Charlie his share of the deposit and we will retain the current deposit which will be transferred into your and Mike’s name.

As we will not be getting the property handed back in a vacant state and therefore are unable to conduct a full inventory recheck, we would request that all parties check the inventory together and come to an agreement if anything should be held back from Charlie’s share of the deposit.

You will then sign the same inventory accepting joint liability and acceptance for any loss or damage at the end of your lease period. Please note that if there has been any damage since the initial inventory, the tenants on the new lease will then become jointly liable."

Is it alright to pay Charlie money? Shouldn't the agency be returning his money?

Is it impossible to do a full inventory just because one person is staying in the house? The agency is, in effect, saying that Charlie, Mike and Rob should do an inventory so why can't the agency do it?

Is Rob storing up any problems for the future doing things the way the agency are suggesting?

pmlindyloo

Do Charlie and Mike have a joint tenancy agrement or did they sign separate ones?

Mojisola

pmlindyloo wrote: »

Do Charlie and Mike have a joint tenancy agrement or did they sign separate ones?

Don't know. It's one question we want to ask because we're going to be Rob's guarantors. The forms don't make it clear whether we're guaranteeing that his rent will be paid or whether we could be chased for his and Mike's.

DVardysShadow

Mojisola wrote: »

Rob has received this from the agency -

"Ideally you will pay Charlie his share of the deposit and we will retain the current deposit which will be transferred into your and Mike’s name. .... "

Is Rob storing up any problems for the future doing things the way the agency are suggesting?

The big problem with this is that Rob will not have a valid receipt for his deposit. Which will make things very difficult if ever there is a dispute.

A way around this is for Charlie and Rob to go into the Agent together. Rob to pay over the deposit to Charlie, Charlie to provide a reciept to the Agent and the Agent to provide a reciept to Rob. The Agent might not wish to play ball, in which case, Rob should insist on paying the deposit to the Agent and insist on a reciept.

In terms of the inventory, Rob should join the others for Charlie's exit inventory, which will be Rob's entry inventory. This should be documented and Rob should retain a copy and he should make sure that all shortages and breakages deviating from the original entry inventory are documented and signed for by the others

Mojisola

pmlindyloo wrote: »

Do Charlie and Mike have a joint tenancy agrement or did they sign separate ones?

It's a joint tenancy.

pmlindyloo

I believe that where there is a joint tenancy then there has to be a lead tenant and the deposit is registered in their name so I am not sure why the LA is saying that the deposit will then be put into joint names.

Where is the deposit protected?

I think the LAs are trying not to make too much work for themselves. They start the sentence with 'ideally..... which suggests that legally this may not be the correct procedure.

Since they are joint tenants I think the tenancy should be ending with all that entails - check out inventory, return of deposit and then a new tenancy created.

I can see where the LAs are coming from since this saves them a lot of paperwork.

But I would check whose name the deposit is registered in - could cause complications along the way.

BitterAndTwisted

If you're going to be Rob's guarantor in a joint-tenancy you will be liable for the whole of the rent for the property not just Rob's share, should the worst happen. Are you aware of this?

Mojisola

BitterAndTwisted wrote: »

If you're going to be Rob's guarantor in a joint-tenancy you will be liable for the whole of the rent for the property not just Rob's share, should the worst happen. Are you aware of this?

That's what I was worried about. One lot of rent is doable - if we got a demand for both lots, we'd really struggle.

martinsurrey

If they want an inventory done, then Mike will have to move 100% of his things out to enable the check out clerk to see behind every sofa, bed, wardrobe, to check all the carpets, inside of cupboards etc.

I'm sure if you insisted on this Mike would not be happy (since he would in effect be homeless for a few days, as well as having to move twice).

The tenancy agreement also does not state who is entitled to the deposit, it just states that the tenancy, has a deposit of £XS, this will be repaid to the lead tenant at the end, it’s up to them to sort out the return of each other’s share.

If Rob wants a receipt, he needs one from Charlie, stating that he has received £XX from Mike on XX/XX/2012 and this sum represents full and final repayment of his interest in the tenancy deposit on XX Random Street, XX12 XXX.

He should also get an acknowledgement from Mike to the effect that by paying XX to Charlie, he has gained an interest of £XX in the deposit on the property.

If you insist on paying the deposit to the agent the following problems will come up (as well as Mike having to move out).

1) Mike would have to pay a second deposit. The old one would only be returned after all deductions had been sorted, this could take 10days after the checkout, and he will need to pay a deposit before he can move back in.
2) Final energy account would be needed. The deposit is only returned once all energy bills are paid, and proved, Mike would need to then set everything up again.

All in all, its a massive headache to do it the long way, not to the agent, they just do what they always do, and charge fees for it, but to Mike Rob and Charlie.

G_M

If thisis a joint tenancy there are two ways to alter the tenants:

1) end the current tenancy, check for damage etc, return deposits to tenants closing down the deposit registration
Then start new tenancy with new names, take new deposits (which should be registered with a scheme

2) Substitute the name of the new tenant for the departing tenant on the existing tenancy. This must be done by a Deed of Transfer which must be signed by:
i) landlord (or his agent)
ii) ALL the old tenants
iii) new tenant(s)

The new tenant then takes over all the liabilities/rights (including deposit)/obligations of the departing tenant.

As guarantor you will be liable for ANY costs relating to the tenancy eg ALL the rent, ANY damage (whichever tenant caused it) etc.