Q: If a tenant a statutory (month-on-month) lease the required notice period of two months, under possession by the owner, the last months served may waive the rent tenants pay landlords to instruct and take that amount from the deposit (which is slightly more than one months rent)?
After all, the deposit is mainly to ensure that the landlords will not be without means if a tenant a rent payment missed, and because the lease has been asked to stop then when everything is in good condition will not really need the guarantor to rely on the last Mon
The Custodial Scheme
Under a custodial deposit scheme, the deposit is held by a third party rather than by the landlord. The scheme will be run and managed by a private organisation, known as the ‘scheme administrator’, which will contract with the Government to run the scheme.
The custodial scheme will be available to all landlords to use and there will be no fee payable for its use.
Under the custodial scheme, all deposits will be held in a single designated bank account, which is managed by the scheme administrator. The interest generated on the deposits will be used to fund the running costs of the scheme.
At the start of the tenancy, the tenant will still pay his deposit to his landlord as happens now. However, instead of the landlord retaining the money, he will be required to pay it into the designated bank account. The deposit money will then remain in that account until it is dealt with in accordance with the scheme at the end of the tenancy.
Insurance-based Schemes
Whereas with the custodial scheme the money is held by a third party, under an insurance-based scheme the landlord continues to hold the deposit himself. If at the end of the tenancy there is no dispute, the landlord returns the agreed amount of deposit to the tenant. The landlord is only required to transfer to the insurance-based scheme administrator such part of the deposit amount that he and the tenant dispute is payable at the end of the tenancy.
BUT and more importantly you cannot get rid of tenants if you have not complied with the regs !
A landlord is prohibited from serving a notice requiring possession of the rented property, at the end of the term fixed by the tenancy if he has received a deposit but has not complied with the requirements to:
a) safeguard it under one of the 2 authorised tenancy deposit schemes; and
b) provide the tenant with the prescribed information;
He could possibly keep the deposit if he has a legitimate reason to do so and still rightfully say you owe him one months rent and take you to court. The court would find in his favour as you do owe him a months rent. If you disputed him keeping the deposit you would have to take him to court separately.
As a LL I would be more inclined to look for legitimate reasons to withold (some or all) of the deposit if this happened to me, whereas I normally let minor things go and refund all the deposit on the day a tenant leaves.
But the tenant will more than likely have found their next place to live by that point anyway!
this comes into effect in October, and there are meant to be 2 schemes – one where the LL can keep the deposit, but has to take out an insurance policy as well to cover any disputes – at their own cost – but the tenant can have their deposit back on the last day of the tenancy, or one where the deposit is sent to a govt scheme [so far free to the LL] and the tenant will get their deposit back by cheque within 10 – 14 working days.
That was over 10 years ago. He claimed he kept the deposit to cover his several trips (petrol etc.) to the flat to check its conditions during the time I was there. :rolleyes:
I threatened to take him to the small claim court but in the end I didn't pursue it. It stil makes my blood boil everytime I think about it, not just for the money, it is a matter of principle.
If you have had a good relationship then approach your LL saying that you are a little short in the last month as you need money for moving next deposit or whatever.
OH and as from April LL cannot keep deposits, check the ODPM website to see the different schemes that we have to follow.
Personally I would keep the last month's rent and let the landlord argue about it if s/he wishes. But no, it isn't legal to do that.
If the landlord says no then fair enough, but they may be happy to go with it. Just depends on the landlord really and if they have had their fingers burnt in the past.
if he withheld it for unreasonable or no reason at all you can get it back by filing a money claim against him or her.
the deposit is not there to ensure the ll does not go with out funds
the deposit is security against damages.
untill you move out he cannot check for damages.
if you do not pay rent your ll can pursue you for non payment regardless of it being end of aggreement.
i wouldnt even ask just pay the rent and get your deposit back at end of tennancy.
I used to do that when I rented. Technically its not allowed, but at the end of the day most landlords will just accept it.