Can you take a deposit by installments?

Don't make a bad situation worse. A tenant wjo can't afford a deposit and suspect deposit protection issues.

I split "deposit" payments all the time.

This is only if I like the tenant and trust them and I just have many years instinct to go by - I am only very occasionally let down, but my tenants normally leave when I ask them rather than having to go to court, so this isn't London. Two months is a lot to find right at the beginning, particularly if they have left a marriage or their previous landlords have made deductions, even if only for utility Bills etc. so I often offer them to pay a LITTLE more in the first month then settle it within three months.

I register the full deposit and call this extra money the rent - so in effect they are in arrears with my blessing for three months (and presumably can be served notice). I include this arrangement in the additional clauses, so that it is clear.

Mydeposits must have changed their advice as years ago I was told that I needed to pay three times - each time the deposit was improved upon! All this is avoided if they have paid their deposit and are simply in arrears from day one for their rent. I'll be interested on the legal angle here, but I shall probably carry on doing it to be helpful. I don't take benefit tenants - this is applicable to people on low salaries or who are starting new jobs and don't get paid for a month. Call me soft but it really doesn't cost.

Reply to the comment left by "Gilly " at "26/06/2015 - 20:21":

Hi Gilly

It sounds like you are taking a full deposit at the outset, but accepting late rent for three months or so, where a tenant does not have all the upfront monies needed.

This would be simpler than late paid deposits but not without its drawbacks.

Reply to the comment left by "Jay James" at "26/06/2015 - 20:53":

Thanks Jay, succinctly put! I do ramble rather but thought that's what I said.

The only drawback I can see is if they don't catch up, which has rarely happened. As they are in arrears from day 1 I assume they can be served notice if necessary.

Finding double rent is a massive issue for some people, but that does not make them bad tenants - there are many people living close to the breadline and they need all the help they can get.

Reply to the comment left by "Gilly " at "27/06/2015 - 07:12":

The Deregulation Act means S.21 Notices cannot be served until after month four.

Hello Pam,

I had similar, only the tenant never paid a full deposit in the end.

The deposit was £975:00, they were £50:00 short of the full deposit when moving in, i documented this on the T.A and got them to sign that there was a short fall in the deposit.

I use the DPS to protect my deposits, i e mailed them and they e mailed back stating that i only have to protect "a full deposit once received".

I never protected the deposit and informed the tenants in writing that i will protect their deposit once i received the short fall, which as time went on i never received, but for a period they did pay their rent on time and in full.

The recession hit and my tenant being a builder started to fall seriously behind with his rent to the point that i had to start eviction proceedings. The usual path by the tenant was followed and they went straight to citizens advice for free legal information. The tenant stated to C.A that i had not protected their deposit but failed to mention the reasons why.

I received a letter from a solicitor threatening to take legal action and involving the local County Council as i had not protected the deposit as "legally i had to". They went on to state that i would be heavily fined etc.

I wrote back explaining that the tenant had not paid a full deposit and had signed to acknowledge this on the original T.A and attached a copy of the DPS e mail to the letter. I went on to state that if the tenant wanted to make up the short fall i would protect their deposit as per law.

I never heard anymore from the solicitor who was going to drag me to court and impose a heavy fine on me. I went onto evict the tenant via court and at no point did they attempt to use the deposit not being protected as a reason to halt the eviction.

Andy

Reply to the comment left by "Andrew Holmes" at "28/06/2015 - 09:23":

I put that down as a lucky escape Andrew.

The mistake email from DPS probably saved your bacon. The solicitor was no doubt put off by it and didn't fancy the argument for his share on the NWNF deal I suspect.
.

Hello Mark,

Has the rules changed for the DPS, are we required to secure part deposits only now, if that is the case will we incur charges for protecting part deposits ?

At present i have it in writing i only need to secure a full deposit and that is straight from the DPS.

Andy

Reply to the comment left by "Andrew Holmes" at "28/06/2015 - 10:28":

Hi Andy

So far as I am aware this has always been the rule, I don't think there have been any changes on that score. If I were you I would double check what DPS have said to you in writing at a higher level because I think somebody has made a mistake.

If it turns out that I am wrong then I will be very confused.

I do think the email you have could offer you some protection though if you are ordered to pay compensation by a Judge because you may be able to counter claim against DPS. That said, I wouldn't relish the legal battle if I were you so it is best avoided I'm my humble opinion. I can't imagine that DOS would simply roll over and pay out and their legal bill would be enormous Ian's if you lose you would have to pay it.
.

If correct, what a great loophole...make deposits impossibly high, making it clear to the tenant not to worry if they can't come up with the whole amount and then get away with not protecting it!