Renting and deposit criteria / fulfilment

mkane

Hi all,

I would like to check your opinion on deposits and how I can make use of the flexibility available for renters. 

I am renting a property for the last four years with fixed rent for the first three years. 

During Covid, it was discussed with the property agent on the phone call that the rent would be reduced to between £750 and £850 for three months period and there was no decision or discussion that the discounted amount will be returned at a later date.

After three months, the rent was back to £1100 usual, but later (3-4 months later) the agent came back that it is required to give the remaining rent back from the discounted figure, and it came close to £950.  The agent took this amount from the deposit and suggested that this be reviewed during the next lease renewal. 

Last year, the lease was renewed and with rent, the agent added the remaining £950 amount as part of the lease renewal terms. Now, as the dynamics are changing with increased rent, utilities, council tax and so many other added costs, is there any way I can delay the remaining deposit, or can the agent force in any way to get this amount?

I am not sure if I made it very clear so feel free to ask any questions. There are no other issues, rent is paid out on time and no other issues are reported by the agent. 

Thank you, MK. 

PRAISETHESUN

Was the rent reduction agreed in writing? If not, then it's a bit of a "he said, she said" situation  - your TA makes it clear what rent is due so if they are asking to stick to your agreement then that's the legal default unless you can prove otherwise. 

When you say "The agent took this amount from the deposit", I'm not sure I follow. Generally speaking, the deposit is protected until the tenancy ends (either by you giving notice and vacating the property or by a court granting an eviction order after a lengthy legal process). The agent can't just help themselves to it during the tenancy, and if they do there are big penalties for doing so.

Repayment of the outstanding rent (assuming you don't dispute that it is outstanding, but it sounds like you do) is a matter you need to discuss with your LL/agent. They may or may not accommodate the request but it's entirely at their discretion as to whether or not they do allow some sort of repayment plan. Yes, they would be within their rights to start action to enforce the amount owed (small claims court, etc).

mkane

Thanks for the notes, the outstanding 'rent' amount was taken out of the deposit (as suggested by the agent) so it is cleared.

The issue remains to replenish the deposit amount which is now short of £950. The agent is insisting to make small deposits every three months until this amount is cleared sometime next year. 

The rent reduction was not in writing and cannot be supported. 

"Generally speaking, the deposit is protected until the tenancy ends (either by you giving notice and vacating the property or by a court granting an eviction order after a lengthy legal process). The agent can't just help themselves to it during the tenancy, and if they do there are big penalties for doing so."

The agent suggested this is taken out of the deposit before the tenancy ended in the last term, before renewal, and now insisting to replenish the remaining deposit. I am hoping this can be delayed or not enforced if there is an option.

canaldumidi

Whether the reduction was temporary or permenant, and whether it was effectively a loan (ie to be paid back later) depends on what was agreed at the time. If the agreement was not in writing, then it becomes difficult toprove one way or the other.

Always get agreements regarding changes to the contract in writing!

Which deposit scheme is being used? Is it a custodial scheme (the scheme keeps the deposit till the tenancy ends) or an insurance scheme (the LL keeps the deposit but the scheme 'insures' for the tenanit)?

Last year, the lease was renewed and with rent, the agent added the remaining £950 amount as part of the lease renewal terms.

Not sure what youmean. Please quote the lease exactly. Have you signed it yet?

mkane

The last lease had a termination date which ended on Sept 2020, and the new document titled "Memorandum of Renewal" is the only signed document and includes the following content. 

"Removal of Break Clause Notwithstanding Clause Mutual Break Clause within the Memorandum of Renewal dated 2 September 2020 the Landlord and Tenant hereby agree that the power to End the Tenancy within the Term hereby created is no longer applicable and that Clause Mutual Break Clause within the Memorandum of Renewal dated 2 September 2020 in the Tenancy Agreement shall cease to exist. FOR THE AVOIDANCE OF DOUBT, the Landlord and Tenant will no longer be able End the Tenancy before 21 September 2022 Deposit Repayment Notwithstanding Clause 5.

Deposit it is agreed between the Landlord and Tenant that the tenant will return the deposit amount to the Five week figure of £1,384.62 (One Thousand Three Hundred and Eighty Four Pounds and Sixty Two Pence) from the current figure of £369.23 (Three Hundred and Sixty Nine Pounds and Twenty Three Pence). The amount of £1,015.39 (One Thousand and Fifteen Pounds and Thirty Nine Pence) will be payable in the following manner; £150.00 (One Hundred and Fifty Pounds) payable on or before 22 February 2022, £150.00 (One Hundred and Fifty Pounds) payable on or before 22 May 2022, £150.00 (One Hundred and Fifty Pounds) payable on or before 22 August 2022 and a final payment of £565.39 (Five Hundred and Sixty Five Pounds and Thirty Nine Pence) due on or before 22 November 2022"

The deposit is protected by Tenancy Deposit Scheme.com and seems like they used the insured scheme, as an insured-scheme-related document is attached to the online certificate. 

canaldumidi

If you signed the "Memorandum of Renewal" then you have agreed to the terms within it.

I suspect also that the 2nd paragraph could be used as supportive evidence that the reduced payments agreed during the lockdown were not a reduction in rent, but were an agreed deferment in payment, which you have a agreed to now make good.

Not what you want to read I know, but by signing this you have committed to it.