My tenants and I have agreed that their rent is to be increased. Does this effect the deposit lodged with the DPS which is currently equivalent to one month’s rent or should I ask the tenants for a one-off payment to top up the amount of deposit held? I am happy to leave the deposit as it is as the rent increase is minimal. Is this ok?. If I have to increase the deposit, would I need to reissue the Prescribed Information?
Question
Changing the Rent (England)
My tenants have agreed to a rent increase.
Answer
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1 Comment
You could agree an increase in the deposit if you wanted but it’s not necessary from a legal view. It is a personal choice for you both to decide.
I would probably be tempted to leave it if it’s a nominal increase – that would save on paperwork.
The DPS have a facility whereby amounts can be added to the deposit fund. However, I think to play it safe you would normally want to issue new prescribed information to match the new deposit amount. By leaving it as is, this would be avoided.