The local hospital want to reserve multiple rooms I have available. They will pay 6 months rent and deposit in advance. There will be no tenancy agreement with the hospital. There will be an agreement that says they can introduce any member of staff as a tenant and a tenancy agreement will be drawn up directly with the tenant. Part of the agreement is that there will be no credit checks done.
My question is if I am invoicing them for the equivalent of 7 months rent is this just seen as an invoice and not a deposit? The rent money will be drawn-down as a member of staff move in. I don’t want to find that the monies paid in a lump sum in advance comes under deposit legislation. The monies will be held on account and utilised as the employees move in then a deposit will be lodged for each room and for that specific tenant.
I hope that makes sense.