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Has landlord avoided the deposit protection scheme

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KandM
KandM Posts: 9 Forumite
in House buying, renting & selling
Hi everyone, newbie here so I apologise if this post is not accurate to start off with.

I will be issuing notice to my landlord in the coming days, but I noticed on the Tenancy agreement that they have marked down that they have not taken a deposit but I have paid 2 months rent in advance. However, the tenancy started on the 1st March 2016 which we paid the first months rent and I paid from my bank the rent on the 1st April and every month there after.

Could they be avoiding using the Depoisit protection scheme for some reason? if not I feel something is not right.

Any help would be great and please ask away if something needs clarifying

Thank you
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Comments

  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
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    If your tenancy started on 1st march and you made a payment on that day what date did you make the additional 2 months in advance payment?
    or are you saying you did not make these payments but the agreement suggests you did?


    Did you pay a deposit if so how much and when?
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  • KandM
    KandM Posts: 9 Forumite
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    Hi
    I paid first months rent on the day (1st March) and then I paid rent via standing order on the 1st April, 1st May, 1st June etc... every month without fail.

    I think I paid a months rent as deposit
  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
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    Did you move in on the 1st March if so then you paid your rent correctly for that month.

    Rent is usually paid in advance not arrears so if you made a payment on 1st march and moved in that day,thats correct. You have continued to pay monthly rent on the 1st of each month thereafter.

    I cant see how you think you have paid any extra in advance that would constitute a deposit.

    The agency or the LL are unable to register funds with a deposit service unless a deposit is actually paid.

    Did you pay a deposit and if so how much?
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  • Steppy1234
    Steppy1234 Posts: 51 Forumite
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    If I understand you correctly, you moved in on the 1st of March and paid, what you understood was, 1 months rent in advance and then the same amount again as a deposit however now as you prepare to end tour tenancy, you've read your agreement, your LL has listed this as 2 months rent in advance. I've heard other people doing this to avoid placing the money in the protection scheme.

    I'm not expert, are you expecting any issues on vacating the property?
  • InterestedParty2018
    InterestedParty2018 Posts: 134 Forumite
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    It is the norm for tenants to pay rent in advance. If a tenant moves in on the 1st of the month, it is even easier to calculate.
    Simply put, if all you paid on 1 March 2016 was one months rent, and then again on 1 April 2016 and again on 1 May 2016... and every month thereafter, then all you have paid is rent.

    Unless you have anything to contradict this (ie an invoice or receipt) which states that you have a paid a deposit, then the tenancy is correct, you did not pay a deposit.
    (A deposit is usually equivalent to 1 months rent or 6 weeks rent, so you would have had to pay double or more rent in March 2016, if you had paid a deposit. Do you have bank statements to check too?

    The landlord is required to register a deposit with a recognised deposit scheme, to protect the tenants deposit. If no deposit was paid, there is nothing to protect.

    Looks like you will need to prove you paid a deposit before anything else!
  • FBaby
    FBaby Posts: 18,367 Forumite
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    You need to elaborate on what your contract says. Sometimes LL will ask for first month and last month rent although in that case you just wouldn't pay the last month.

    What they can't do is take some additional money and then label it something else than a deposit.
  • KandM
    KandM Posts: 9 Forumite
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    Steppy1234 wrote: »
    If I understand you correctly, you moved in on the 1st of March and paid, what you understood was, 1 months rent in advance and then the same amount again as a deposit however now as you prepare to end tour tenancy, you've read your agreement, your LL has listed this as 2 months rent in advance. I've heard other people doing this to avoid placing the money in the protection scheme.

    I'm not expert, are you expecting any issues on vacating the property?

    HI Steppy - yes this is correct - no there should be no issues at all when vacating the property. Any email or text message we have sent him when we have advised an issue has been kept along with his response. The inventory simply lists Wooden Flooring and Carpets. That is it - no condition of the flooring or walls etc.. I don't think he cares about the house as long as it is not destroyed as he pays no interest in it and rents it out very cheap for the area.
  • KandM
    KandM Posts: 9 Forumite
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    InterestedParty2018 wrote: »
    It is the norm for tenants to pay rent in advance. If a tenant moves in on the 1st of the month, it is even easier to calculate.
    Simply put, if all you paid on 1 March 2016 was one months rent, and then again on 1 April 2016 and again on 1 May 2016... and every month thereafter, then all you have paid is rent.

    Unless you have anything to contradict this (ie an invoice or receipt) which states that you have a paid a deposit, then the tenancy is correct, you did not pay a deposit.
    (A deposit is usually equivalent to 1 months rent or 6 weeks rent, so you would have had to pay double or more rent in March 2016, if you had paid a deposit. Do you have bank statements to check too?

    The landlord is required to register a deposit with a recognised deposit scheme, to protect the tenants deposit. If no deposit was paid, there is nothing to protect.

    Looks like you will need to prove you paid a deposit before anything else!

    Sorry I forgot to add I remember having to pay 1st months rent in advance and a months rent equivalent for the deposit. I have just looked on my bank statement and at the beginning of Feb I made a payment to him for £1425 and it was titled deposit. This would have been done before to hold the property.
  • InterestedParty2018
    InterestedParty2018 Posts: 134 Forumite
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    Now that you remember making a payment, this changes the circumstances somewhat.

    It is common for a landlord to ask for the deposit (equivalent to 1 months rent/6 weeks etc) and the first months rent in advance at the start of the tenancy.

    You said in your OP that the Tenancy Agreement says no deposit. Can I ask why you did not challenge this, when signing it, considering you had paid a deposit?

    Do you have record to whom the deposit was paid. Do you have any receipt or invoice?

    If your landlord has taken these funds as a deposit but failed to acknowledge it as such (maybe to avoid using a deposit scheme), then s/he is in the wrong.

    I would suggest you get all your records in place, ready for the end of tenancy. If you landlord has sneakily and purposefully avoided the deposit scheme, I would question why. Is the landlord perhaps intending to deny you paid a deposit? After all, it appears you signed an agreement which says no deposit was paid.

    If this is the case, and things turn nasty, you would need to prove you paid the deposit to the landlord and that it was not placed in an authorised deposit scheme.

    Good luck.
  • KandM
    KandM Posts: 9 Forumite
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    Thanks everyone for your comments. Just a FYI.. Done some digging around, deep memory searching and a chat with the wife. A prior to us moving in we paid a deposit and fees to the LL and he acknowledged this and confirmed by email the amounts paid and that the email was the receipt for this. I paid cash on he day the tenancy started for the first months rent, so that's all good.

    I have since given notice and the LL has confirmed the Deposit will be returned within 7 days of vacating, barring any issues with the condition of the property.

    I still don't know if he has it protected or not... time will tell

    I think a good rule of thumb is to keep a note of everything that has taken place with the Tenancy agreement
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