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3 Comments
No, you can’t do that!
The definition of “deposit” is “any money held”.
The payment would be money being held to secure the performance of paying the last rent, which is an unknown date. As a result, the amount would be a deposit requiring protection, so it doesn’t avoid the deposit protection rules in any way.
By taking the payment that way, the landlord could serve no section 21 and be liable to a penalty of between one and three times the amount.
I thought so, that’s great, is this displayed in the tenant fees act document so I can evidence this? I have had a look through the document but I couldn’t see it.
It’s because of the term “money held” in the Housing Act 2004. See Piggot v Slaven: https://www.landlordsguild.com/piggott-v-slaven/