Deposit changed to extra month in advance - legal?

[monsopiat]

My letting agency recently informed me that they were no longer holding deposits (I had paid a one month deposit) and that instead they were moving to requesting two months rent in advance. They propose therefore moving my deposit into my rental account to cover the extra month in advance. To me, this seems to be simply a cynical way of reclassifying a deposit in order to be able to earn interest on it. Can anyone inform me if this is legal, or what recourse I have?

Many thanks,

GB

[Steve__M]

I don't see why it shouldn't be legal. But it is risky for landlords and personally I would not do it.

 

The legislation was designed to deal with landlords and agents unjustifiably withholding deposits at the end of the tenancy.

 

If an extra month's rent is taken in advance, no rent need be paid during the last month so there is no deposit to worry about from the tenant's point of view.

 

If the landlord wanted the tenant to pay for damages, the landlord would have to justify their claim in court if the tenant disagreed.

[raydetinu]

It would have to be part of the contract that this extra rent is to cover the last months rent prior to you leaving, or you could just not pay until again until the third month; Must be part of the contract!

Leaves LL exposed IMHO.

[Sali]

If I were the LL I would definitely want the deposit protected. If I were the tenant in this case, I would resist the change. The deposit scheme should, as I understand it, allow you as a tenant to have a third-party resolve any disputes at end of tenancy. Are you mid AST? Surely the agent cannot force the issue without your consent if that is the case. I wouldn't trust any agent who forced me into this position, even going as far as giving notice to quit.

[Annoying Twit]

I think raydetinu has the solution. Simply say to the agents/LL that since you are one month in credit, that you won't be paying the next month's rent. The LL/agent will then have to negotiate.

[binkhus]

this also happened to us, the landlord decide to get two months rent up front instead of a deposit, so we are always 2 months in front. if we leave we would not pay for the last month but that would still leave a month that he would have to give back. not sure legally about deductions ect.

[raydetinu]

This would have to be part of the contract to which you sign up to, dont sign it until it is. If the are still holding one months rent in hand, what is that for then, cant be set against rent as you are not in occupation; therefor must be deposit or bond and must be protected. Either that or you dont pay last two months rent! Sounds illegal to me to keep any money using this [problem]. whatever it is it must be in the contract and if sounds like a deposit then thats what it is, dont be fooled. If they say its rent in advance then it must be used as such and they cant keep it!