Deposit spread out

I’ve found a tenant who is a family friend, and we’ve agreed they can pay the deposit in increased rent for the first 5 months, but I can’t understand how I would go about this through openrent, since they collect the deposit. Would anyone know what i could do?

they cannot afford the deposit in one hit?

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It is possible to set a tenancy using a ‘No Deposit’ option, although the tenant would be required to pass comprehensive referencing. Search deposits in the Help Centre.

Not being able to afford the deposit in one hit before the tenancy commences is a red flag.
If you don’t get it at the beginning you are not likely to get it at all.

Have they passed referencing and affordability?

Under the TFA I thought rent cannot be increased and then decreased .
I appreciate it’s not a fee but you don’t know how your tenancy is going to run.

I would walk away in such a situation.
In my experience these are the tenants who don’t keep up with rent and you’ll be wanting to serve notice before the ink on your contract has dried!

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agree with AA. They will not be your friends in a few months time if they default. Cannot afford deposit then cannot afford rent. Have you done a credit check Sarah 104 ?

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One of the oldest rules of landlording is never rent to friends or family because it will destroy the relationship.

What you are proposing to do is fraught with problems. You would have to protect each installment of the deposit separately and serve the prescribed information each time. If a payment was missed, you would still have named the full amount in the tenancy documentation and be obliged to refund that amount.

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If it’s a custodial deposit you can protect it in installments and serve documents once and a certificate each time the deposit is increased
Insured deposits are as you say protected in small amounts each time which will be costly if not anything else

Head not heart Sarah 104

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