Deposit increase.

J,M

I rent out two properties, I required a deposit of a months rent.
One of the tenancies will end shortly, but will be renewed for another period of 3 years.

The tenants are good payers and from what I have seen look after the property.

Out of curiosity does anyone top up the deposit? I ask because taking inflation into account, what would be covered by the deposit three years ago probably wouldn't be three years hence.

Thank you.

silvercar

I wouldn't bother. Either they are good tenants who you trust, so why bother or they are bad tenants and you don't want to renew.

Comms69

J,M wrote: »

I rent out two properties, I required a deposit of a months rent.
One of the tenancies will end shortly, but will be renewed for another period of 3 years.

The tenants are good payers and from what I have seen look after the property.

Out of curiosity does anyone top up the deposit? I ask because taking inflation into account, what would be covered by the deposit three years ago probably wouldn't be three years hence.

Thank you.

Your logic makes no sense. It's the tenants money. They aren't sitting around on a Friday working out what they can break this week...

CarrieVS

It's not utterly unknown to ask for more. Are you increasing the rent in line with inflation/current market?

The first student house I moved into, I paid a deposit equal to one month's rent, as is customary. I was sharing with two other people who were just moving in and three people who'd already lived there for one or two years. The rent and hence the deposit was increasing from the time I joined them, and I recall that those who'd already lived there were asked for a top-up deposit.

That's the only occasion I've come across such a thing, but on the other hand I've never yet stayed anywhere long enough for anyone to put the rent up.

Pixie5740

J,M wrote: »

I rent out two properties, I required a deposit of a months rent.
One of the tenancies will end shortly, but will be renewed for another period of 3 years.

The tenants are good payers and from what I have seen look after the property.

Out of curiosity does anyone top up the deposit? I ask because taking inflation into account, what would be covered by the deposit three years ago probably wouldn't be three years hence.

Thank you.

Equally the items in your property are 3 years older than they were at the start of the tenancy and since you are not entitled to betterment the deposit should still cover damage over and above fair wear and tear.

davidmcn

Comms69 wrote: »

Your logic makes no sense.

Seems logical to me (assuming the rent has gone up). It's standard in commercial leasing for deposits to be increased if the rent is - the landlord still wants cover for a month / quarter's unpaid rent.

J,M

Thank you to those that offered constructive comments.

G_M

J,M wrote: »

Thank you to those that offered constructive comments.

Strange response.
The comments may not all have offered the same advice, but they were all constructive!
It's your choice as to which line you choose to follow.

wavelets

J,M wrote: »

I rent out two properties, I required a deposit of a months rent.
One of the tenancies will end shortly, but will be renewed for another period of 3 years.

The tenants are good payers and from what I have seen look after the property.

Out of curiosity does anyone top up the deposit? I ask because taking inflation into account, what would be covered by the deposit three years ago probably wouldn't be three years hence.

Thank you.

Most respectable private landlords do not"renew" tenancy agreements.
Most private landlords let is under an AST, and allow a tenancy to roll over to periodic once the minimum period expires. There is usually no advantage to the landlord to having a new tenancy agreement set up.

It tends to be agents that expect new tenancy agreements to be entered into as it allows them to charge yet more huge fees to tenants (soon to be outlawed)

As others have already indicated, I too fail to understand your logic here.

wavelets

Pixie5740 wrote: »

Equally the items in your property are 3 years older than they were at the start of the tenancy and since you are not entitled to betterment the deposit should still cover damage over and above fair wear and tear.

It's not necessarily the cost of replacing "the items in your property" etc.

Security deposits are also requested for unfurnished properties, and the cost of repairing a broken window, or on cleaning soiled carpets, curtains, etc (in excess of fair wear and tear) would probably be higher today than they were 3 years ago.

wavelets

J,M wrote: »

Thank you to those that offered constructive comments.

Did you know that MSE have a 'Thanks' button on all their boards introduced to allow you to do just that, and avoid bumping the thread by posting a thank you post :money: