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Question

Deposits and Tenancy Deposit Schemes (England) | Tenancy Agreements (England)

deposit protection

19 Apr 2016 | 1 comment

there are so many technicalities coming into play with deposit protection that i feel i should avoid it altogether where I can. this means not taking a deposit. instead, I feel taking 2 months rent in advance may somehow be a better option. i know it isnt the same as taking a deposit but is better than not taking anything. do you think there are any issues in doing this and do away with deposit protection and so enable me to issue s21 when needed

Answer

1 Comment

  1. guildy

    Although this is possible, have in mind that you wouldn’t then be able to seek any further rent for two months. It would have to be a true two monthly rent. For example, if the rent is normally £400 per month, the rent would be £800 every two months. You couldn’t take 2 months rent and then seek payment the following month as that is deemed a deposit (quite rightly).

    We personally take a £195 admin fee at the beginning which is never returned and is used for tenancy agreement, referencing etc.

    We work on the principle that for every 5 of these we get allows 1 to go wrong. It is imperative the amount is never returned otherwise it will have been a deposit.

    The only problem with this is you need a reasonable amount of lets per year to keep the £195 flowing in and they need to be generally lower rents to make it work.

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