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Rent up front AND rent monthly in advance - is this an unsecured deposit?

Started by derocherob, June 04, 2024, 12:06:02 PM

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derocherob

I have twice requested rent in advance and monthly payment to leave a kind of float on account, but following feedback I think I may not be right to have done this.

Initial tenancy was rent monthly, but upon renewing, I wanted to mitigate some of the risk by asking for rent up front.

First time we renewed I did 6 months in advance (on a 12 month AST), and I asked the tenant (who agreed) to also pay monthly for first 6 months of tenancy. So I effectively held 6 months rent on account for the first 6 months of the tenancy and tenant didn't pay anything from months 7-12.

Second time we did 2 months on account and rent monthly for months 1-10, holding the rent on account for the last 2 months.

Tenant moved out end of month 11 leaving 1 month on account.

Problem is I have put in writing to tenant that I intended to use the rent to cover damages they caused and there has been some push back. I've returned this now.

Is this technically an unsecured deposit, and could I be liable here?

heavykarma

When you say you needed to mitigate some of the risk, what do you mean? Surely if you had serious reasons to distrust them you should not have renewed the tenancy?  Why did you not want to use the normal deposit protection?

What was the nature of the damage, did you have photos and inventories to back up your claim?

derocherob

Thanks for speedy response.

Tenant had health issues and was smoking on the balcony (potentially in the flat), but had lost wife so didn't want to serve notice. Needed the security of the fixed term too to protect my end.

There was a deposit from the start of the tenancy which was registered, but also now complicated (see my other thread - didn't want to combine the two issues).

I have done rent up front before so believed it was a viable option, but tenant now suggesting it was an unsecured deposit and I may be liable for 3x the amount.

I have a check in and check out inventory, and supporting evidence.

jpkeates

Yes, depending on the exact wording of your tenancy agreement, that "advance rent" was almost certainly a deposit.

And now you've confirmed that you intend to use the advance rent to cover "damage", you've pretty much confirmed that it is in fact a deposit.

The law was put in place pretty much specifically to stop landlords doing precisely what you seem to have done.

derocherob

Quote from: jpkeates on June 04, 2024, 02:39:10 PMYes, depending on the exact wording of your tenancy agreement, that "advance rent" was almost certainly a deposit.

And now you've confirmed that you intend to use the advance rent to cover "damage", you've pretty much confirmed that it is in fact a deposit.

The law was put in place pretty much specifically to stop landlords doing precisely what you seem to have done.

Ok, thanks for confirming my suspicions. I'm not sure there is anything I could/should do proactively to try to remedy as relations have gone sour. I will just hope they choose not to pursue and I will prepare in the event that they do.

Kicking myself for being so naive.