Landlord wants to use deposit as last months rent - is this normal?

Mojisola

Maye101 wrote: »

As I said there is a tennant living there that I would be moving in with. He's lived there since August. It was landlord renting the spare room out to him. But landlord now needs to move but doesn't want to sell so keeping it as an investment property.

There's a bit difference between having a lodger and being a landlord with two tenants!

Maye101

Thanks person one. The current tenant also has an ast. My ast outlined an intial 6 month tenancy that cannot be terminated from either side and then a rolling monthly contract which can be terminated from either side with a calender months notice. This is inline with what I've had before. Absolutely he has the same reaponsibilities im not doubting that. Its just some of the smaller landlords I've had have done things in a quirky way but have been the best ones.

I do appreciate your advice! In what way would it affect me if he didnt have permission to rent it out (and where would he have to get it from?) or if he was using it as his primary residence? Sorry I'm a bit clueless about these things clearly! And I think I'm too close to the situation to think objectively being all geared up to move in 4 days. I even rehomed my cat (although that was a multi-factoral decision)

Gigervamp

I bet the reason he's having trouble paying the deposit into a scheme is that he's spent the deposit. Maybe used it to pay his own deposit on his new place, if he's going to be renting.

He might be thinking that he can cover the void when you move out, hence suggesting the deposit is used as the last months rent.

Maye101

Thanks for the suggestion ginger vamp but I havent paid him any money yet so can't be that. :-)

booksurr

you can give the LL as much benefit of the doubt as you want but cut to the chase....

1. your LL has no experience or knowledge of being a LL with tenants. His experience to date is with a lodger

2. there is nothing at all "difficult" about protecting a deposit other than the fact the LL has to pay to do so if he wants to keep the money in his own bank account or if he does not want to pay he must place it in a custodial scheme where he cannot spend it. His suggestion that it is used to pay the final rent is therefore nothing but a ruse. That said, if as implied by JJLandlord above (oops must call him "miss samantha" now), you get paperwork saying no deposit taken and final months rent is paid then the LL would have to sue you for any damages when you move out as he has no deposit from which to deduct them. He will thus incur costs so may not do it.

3. your LL is unlikely to know or apply all his other responsibilities - that may bite you badly in certain circumstances.

4 his "AST" is appearing to try to establish a contractual periodic tenancy after the end of the fixed term hence his attempt to make the notice period the same for you as it is for him. That is possible if you sign the contract but would be much better if you insisted on a statutory periodic tenancy not a contractual one - then under statute law he is required to give 2 months notice against you only having to give one.

if you accept the tenancy I suspect you will spend a lot of time educating the LL in housing and contract law

[Deleted User]

To be honest, I'd be more worried about the deposit being protected. The LL can spend it and say he doesn't have it to give it back when you leave.., all sorts can happen if its not protected. There will be no official dispute process to go through (other than MCOL if you can find the LL) if he says you've broken something major, left the place in a mess etc.

You can take him to court and ask for 3xdeposit in damages but this can be expensive and I suspect you aren't into that.

The other tenant hasn't gone after his deposit, so you don't know what this LL is like with deposits. There's no honest reason why he would be like this about the deposit.

glasgowdan

At least this way it means he won't be making any deductions from your deposit when you leave!

Guest101

This is fine, It's paying first and last months rent, as long as it's clear, this is perfectly ok.

Person_one

Maye101 wrote: »

I do appreciate your advice! In what way would it affect me if he didnt have permission to rent it out (and where would he have to get it from?) or if he was using it as his primary residence? Sorry I'm a bit clueless about these things clearly! And I think I'm too close to the situation to think objectively being all geared up to move in 4 days. I even rehomed my cat (although that was a multi-factoral decision)

Well, for one, he's unlikely to have the appropriate insurances in place or if he thinks he has they'll likely be invalid.

Also, if the mortgage company wanted to repossess the property, without the proper consent to let in place you have fewer rights as a tenant: http://england.shelter.org.uk/get_advice/repossession/about_repossession/repossession_by_a_landlords_lender

The chances are, neither of these issues will crop up if you just stay 6 months or a year, but they can and do happen.

cloo

This is not usual and I'm not sure it's legal - as others have said, the LL should not have 'problems' getting the deposit into a DPS; it's not there to put barriers in the way of legitimate landlords protecting deposits, so that rings alarm bells.


You can accept the arrangement, but it's at your own risk if they've spent the money, change their mind and say you owe them £££ for something or whatever. And frankly at the LLs risk because they cannot straightforwardly give you notice without having protected your deposit. In the very least they don't have a clue what they're doing, or at worst they're up to something dodgy with your money and your trust.