Maximum deposit for assured shorthold tenancy

BoraBora123

Just curious about this please, I rent via a letting agency and they have one and a half months rental deposit but upon an extra year contract renewal I was requested to pay a three months additional security deposit, that is four and a half months rental deposit.

It's money I had when I began renting back in 2011 so didn't think much about it, but am fairly short on cash right now and being able to get hold of some of that would be ideal, are they allowed to have this amount of money for my security deposit?

I renew my contract once a year if that makes any kind of difference and never missed any monthly rental payments.

Any advice on this would be great guys, thank you.

[Deleted User]

I'd write to the LL and ask why this extra deposit is required after you have already been a tenant, not had any arrears/damages etc.

You could just let the tenancy roll into a periodic tenancy as the worst they can do is serve notice.

They can ask for any deposit they want.., its your choice as to whether its worth it/if you can afford it.

ViolaLass

Are you paying a fee each time you renew too?

theartfullodger

Deposit can be any amount: But more than 2 month's rent means you get extra rights - you can "assign" the tenancy to another tenant...or sublet the place or part of it without landlord's permission Section 15 Housing Act 1988...
http://www.legislation.gov.uk/ukpga/1988/50/section/15

so e.g. you could get 2 hard-working lodgers in & start making a profit: Landlord cannot stop you (except by s21 eviction)

When did you pay the 1.5 month's deposit & the extra 3 months please (month/year for each...).

Was the complete deposit protected within 14 days of you paying it??

jamie11

Generally a deposit should be no more than two months rent, any more than that is classed as a premium, I would politely decline their request.

I strongly doubt your landlord even knows about this demand, to me it is a sign the LA is in money trouble and likely to go under leaving both you and your landlord to sort out the mess.

jamie11

theartfullodger wrote: »

Was the complete deposit protected within 14 days of you paying it??

30 days Artful unless the tenancy started before the localisation bill.

Good point though, and OP, have you been re served with the prescribed information each time the tenancy has been renewed?

Smi1er

Three questions


1/ Where is the 4.5 months deposit held?


2/ Was a full checkin inventory done?


3/ Why do you sign a new agreement every year? Why not enter a SPT?

theartfullodger

jamie11 wrote: »

30 days Artful unless the tenancy started before the localisation bill.

....

Almost: Key question is when was the bit of the Act (s184 I think) enacted {different bits different date} : Answer, 6th April 2012: He said he moved in in 2011 which is why I asked about 14 days...

BoraBora123

Wow, a lot of replies, thank you.

I moved in June 2011 and got six months contract initially, after this I was asked for the extra three months additional deposit to renewed again for six months and upon completion I was offered a year, and have renewed every year since, there is a £125 contract renewal fee each time.

Inventory was done when I moved in yes, but know nothing about deposit protection.

theartfullodger

BoraBora123 wrote: »

......Inventory was done when I moved in yes, but know nothing about deposit protection.

Check if it is protected through this helpful website...

http://england.shelter.org.uk/get_advice/tenancy_deposits/tenancy_deposit_protection_schemes/deposit_protection_and_tenancy_deposit_schemes

and/or write to landlord, copy agent, calm & polite enquiring of details of where & when deposit was protected.

Cheers!

BoraBora123

it comes up on mydeposit website, but it does not say how much for, whether the initial month and a half at the very beginning or with the added three months on top.

What happens if this was not put into the protection scheme within the 30 days? should all of the four and half months deposit be in this scheme.