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WarwickGrad
03-11-2009, 20:28 PM
i have a question if you dont mind

i have a tenant who moved in 8 months ago

they are hard up on cash and have requested to use their deposit as this months rent payment

i have allow them to do this as i can see they are struggling

should i re issue them with a new contract, back dating it to the date they moved in, with a nil deposit? is this normal and acceptable practice?

i dont want them turning round at the end of the tenancy and them saying i owe them a deposit!

and should i protect myself against future rental arrears by serving them a notice now?

if so, which notice is best advised to serve them at this stage

thank you as always!

tom999
03-11-2009, 21:09 PM
they are hard up on cash and have requested to use their deposit as this months rent payment

i have allow them to do this as i can see they are struggling
Was this a verbal agreement, or was it written into the tenancy agreement?

Please also confirm:

Is tenancy an AST in England or Wales?
Is annual rent less than £25k?
Is any protectable deposit protected?
When does fixed term of tenancy end?
Is rent owed? If so, how much?
How often is rent paid (weekly, monthly, etc.)?

Poppy
04-11-2009, 11:41 AM
I personally would not allow use of deposit in lieu of rent payment. As a result, you have to delay serving a section 8 notice for rent arrears for an extra month. Not smart. Too kind.

Was the deposit protected in the first place?
Have you put in writing the deposit use as rent?
How/when are they going to replace the deposit?
What are they spending money on if it’s not the roof over their head?
What’s going to be different on the next rent period?
Have they applied for benefits?

Definitely do not issue a substituted, retrospective tenancy agreement.