House in mutiple occupation, landlord in residence occupants therefore licencee residents. I ask first and last months rent upfront (instead of a deposit) and key return guarantee payment (several keys). All defined in residency agreement I assume this is legal?.
I am informed by my insurance company that not having AFDD electrical installation even though I have a current HMO electrical certificate would probably exclude insurance cover in the event of electrical fire damage?
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If you are a resident landlord then the deposit legislation doesnt apply, but the Tenant Fees Act does. Taking the last months rent for an unspecified period when you dont know when the last month will be has been found to meet the conditions for a security deposit. These are the conditions set out in deposit regulations, so Im not clear whether they would stand, but if they did, you would be breaching the TFA by taking more than 5 weeks rent as a deposit.
A key payment would be a prohibited fee under the Tenant Fees Act.
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The key payment would be refunded when they are returned. I have had a leaving resident spitefuly taking the keys when they left as they did not want to leave. Last months rent is not a security deposit as it is unconditionally returned.
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Rent has to be for a known period to qualify as rent. If you take money for a period unknown then its not rent its something else. The Tenant Fees Act says you can’t take money for anything other than rent and certain specific exemptions.
If the key money is a deposit and that takes the total deposit over 5 weeks rent, then its a breach under that clause.
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So what your saying is they either ask for a bond or ask for the first month’s rent as we are living in hard times everything gone up most people can’t afford both as long as they get boon or 1vmomth rent till housing benefit forms go in and then it can be backdated.
Yes I do born of fifty years experience. I ask for last months rent instead of a deposit to avoid the problem of the residents understandable suspicion of landlords and even deposit holders delaying or refusing to return the deposit. This ensures I have the notice period to look for a new resident. Also without my holding any funds if I impose leaving for unacceptable behaviour more than once they sod off with the keys. Costs have escalated for landlords as well I am now faced with having to fit AFDD electrical protection costing about £1000. Housing benefit? try having money owed to you by a resident paid by a council.
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Do u have any properties in Stockton 1bed flats to rent at the moment for 2 ppl
@Tony16 if this is for an AST and you dont specify which month you mean when you take the last months rent and then actually use it for that month you could have a problem. Its likely that the tenant could successfully claim a 3 month penalty payment from you.