Question

Changing the Terms (Wales) | During the Tenancy (Wales) | Wales

Changing terms of the tenancy

24 Jul 2021 | 3 comments

Hi Guildy,

We have a long term tenant which, for historical reasons, pays rent inclusive of electric, gas, water and council tax. The rent has periodically increased to take into account of increasing utility/CT costs (last increase 2 years ago).

Tenancy agreement is not a Guild agreement, and the tenancy is statutory periodic.

We now wish to change the terms of the tenancy so that the tenant pays their own bills, and reduce the rent accordingly. We will look to agree a new tenancy agreement with the tenant based on the new terms (and using the Guild’s TA).

There is a deposit protected in the DPS Custodial scheme (under the original letting agent’s account).

Do we need to issue new deposit prescribed information with the new tenancy, and is the fact that the deposit is under the letting agent’s DPS account an issue?

Is there anything else we need to consider?

Thanks in advance!

Answer

3 Comments

  1. guildy

    The first thing is, you will need the tenants express agreement to make these changes and creating a new tenancy and them agreeing (signing) will achieve that.

    We believe this is still just a renewal even though the terms are significantly changing and as such the deposit can remain. However, one thing to look out for is that the maximum deposit allowed is 5 weeks rent. If you’re reducing the rent, the deposit could exceed that and the balance must be returned (ideally before the new tenancy commences).

  2. npdl

    Thanks for the response.

    The deposit is currently less than the monthly rent, and will also to be less than the new rent.

    Having said that, the property is in Wales, so presumably the 5 week rule doesn’t apply?

  3. guildy

    Ah yes, you’re right, hadn’t just spotted the Wales part sorry!

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