Updating post from Reddit.
If a tenant agrees to give a deposit of £800, but only gives £500, are we supposed to protect £800 (as per the agreement) or £500 (the amount we were given)?
Thanks
Why are you letting them move in if they haven’t paid the full deposit? I always ask for the deposit to be paid on signing the tenancy and the first month’s rent on move in day before the keys are handed over.
Exactly. Alarm bells ringing that these tenants are likely to be finding themselves short of rent money in the future, plus you’ve already identified yourself as being a soft touch when the inevitable does happen.
You need the full deposit before they move in
Don’t let them move in. They are already in breach of the agreement. If they can’t afford the deposit what chance have you got of getting rent.
Better a void week or two than long term issues
Not sure about the other schemes, but MyDeposits categorically told us to protect the whole amount, regardless of how much has actually been paid.
I think the theory is you are leaving yourself less open to court claim.
Because they want your money. They make money off your money.
You are correct what you say in theory. See my post that basically just confirm in writing what payment is for what
This is the insured scheme, not custodial so they don't actually hold the money.
That's a nope. If the tenancy agreement specifies a deposit and they don't pay it before moving in they are in breach of the contract after they move in.
Don't let them move in, and find new tenants. Once they're in you're up the creek. Do you think they will pay rent if they can't afford the deposit? Good luck getting rid of them
Any deposit payment needs to be protected within 28 days of receipt. Whether partial or full.
So they are not even paying their way before moving in, don’t be handing over those keys.
It’s certainly a tricky one. Make sure you keep it in writing that they only paid you 500 deposit so far. If the next payment is said to be rent then that should be clear that is to be rent and not part of the deposit. That’s all I can say
Whatever it says on the contract , otherwise the deposit scheme’s will look into it . It’s not worth not protecting the exact thing that the cotract says , as it’s a legal document .
Dont give the keys, or sign a new contract. Either option, if you are in a mess having let them in without collecting the full deposit I would do the full £800 to protect myself from the complications of not doing it.
So where would you take the missing £300 from?
If you take it from rent they are instantly in arrears. If you take it from your own purse, you are gifting them £300 when they leave.
Arrears, however, the end goal is to secure the deposit correctly, as if the tenancy has started without the full deposit being paid, the landlord has landed themselves in a trap. Deposit Protection Regulations can mean penalties up to three times the deposit amount.
Alarm Bell. Ding Dong. Future problems for you if you accept this now.
Protect the £500, and chase the rest. But don’t hold off on protection while you wait. Not protecting anything in time can land you in hot water legally.