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View Full Version : Deposit query, 4 students 1 leaving, 1 coming what do I do



huddsandy
09-02-2010, 20:01 PM
I rent a house to 4 students through one AST agreement which ends 30 June 2010. 3 of the students wish to stay on for another year but one wishes to leave, the 3 remaining students have found a fourth student that is happy to move in.

The 4 student deposits are all named under one agreement with the DPS.

Please advised on how the deposits can be managed with minimal hassle for myself and the tenants.

Snorkerz
09-02-2010, 20:17 PM
Closing inventory for original tenants, refund deposit to 'lead tenant' to divi up as appropriate.
New AST
New inventory signed by all 4 new tenants
Full new deposit, presmably 3 x ¼ from originals and one new ¼.

huddsandy
09-02-2010, 23:03 PM
that was my fear having to go through it all again. need to get them signed up now for tenancy starting in Sept, I hope their cash flow is good as they are not due their first deposits back until July! but thanks !

mind the gap
09-02-2010, 23:11 PM
Is it not possible to

(i) leave the current joint deposit where it is
(ii) take a deposit from the new person at the start of the new tenancy and issue receipt as normal
(iii) inform the DPS that one tenant has changed and supply them with the new name (you may not even have to do this if they only have lead T's name anyway) and ask fr deposit to be re-protected for a tenancy renewal
(iv) use new T's deposit to reimburse the departing tenant

?

This way, you don't have to go through the whole rigmarole of physically getting it released then re-protecting it.

Snorkerz
10-02-2010, 09:04 AM
Is it not possible to

(i) leave the current joint deposit where it is
(ii) take a deposit from the new person at the start of the new tenancy and issue receipt as normal
(iii) inform the DPS that one tenant has changed and supply them with the new name (you may not even have to do this if they only have lead T's name anyway) and ask fr deposit to be re-protected for a tenancy renewal
(iv) use new T's deposit to reimburse the departing tenant

?

This way, you don't have to go through the whole rigmarole of physically getting it released then re-protecting it.Surely, new T would render this a new AST, and therefore the deposit would need re-protecting?

Wih regard to OP and his students cashflow.

If Students agree to release full deposit to landlord, then the landlord would perhaps be able to not take new deposit from the original 3 until the original deposit was returned. If you took a deposit from the new one before then, that would need to be protected on its own immediately.

jeffrey
10-02-2010, 10:50 AM
There could be an Assignment between L of first part, departing person of second part, continuing people of third part, and new person of fourth part.
That way, the same tenancy survives (so no new Agreement or deposit protection).

TopNotch
10-02-2010, 12:37 PM
The deed of asignment is probably the best way to go as the DPS will not do anything remotely complicated and in my experiance are pretty clueless.:(

Snorkerz
10-02-2010, 12:39 PM
Okay, I'll go with that - unless the departing tenant is the one specified as 'lead tenant' on the DPS paperwork.

Lawcruncher
10-02-2010, 12:48 PM
When is the change taking place?

jeffrey
10-02-2010, 12:55 PM
unless the departing tenant is the one specified as 'lead tenant' on the DPS paperwork.
Even if he/she is, so what?

Snorkerz
10-02-2010, 13:07 PM
Even if he/she is, so what?The deposit will be returned payable to the lead tenant, not the landlord.

jeffrey
10-02-2010, 13:11 PM
The deposit will be returned payable to the lead tenant, not the landlord.
So the Assignment ought irrevocably to bind the lead tenant, providing authority for deposit refund to the others.
He/she might also usefully sign a mandate (addressed to the deposit-holder) confirming that.

Snorkerz
10-02-2010, 13:17 PM
So the Assignment ought irrevocably to bind the lead tenant, providing authority for deposit refund to the others.
He/she might also usefully sign a mandate (addressed to the deposit-holder) confirming that.Agreed - but if lead tenant is uncontactable, or doesn't compy with the agreement it is going to become messy with claim and counterclaim. Which is exactly what OP wanted to avoid.

Reclaiming the initial deposit, and then re-protecting in the correct names when it is refunded must be simpler.

jeffrey
10-02-2010, 14:12 PM
But:
a. the lead tenant must be party to the Assignment; and
b. that risk of messiness is precisely why you need his/her joinder (+ mandate).

Telometer
10-02-2010, 14:32 PM
Whatever happens, make sure you have a full inventory done at the changeover, otherwise you won't ever be able to pin damage on any individual.

huddsandy
11-02-2010, 21:58 PM
thanks for all the advise, some interesting points raised. I have also asked the DPS the same question, will relay this on once/if I get a response.

I may end up just starting a new tenancy with new DPS deposits etc, that way I get a clean risk free break, although bit of work involved.

Thanks again . Andrew