Existing tenants who are moving out 16th June 2019. Do they need me to return the holding deposit on 1st June ?
Or
Is it new tenants that we should not take deposit from?
Hi Sophie,
No need to return the deposit on 1st June. You can go through the same deposit return process as usual, returning the deposit at the end of the tenancy.
You can still take a deposit from tenants after 1st June. It’s just that the deposit will be capped at 5 weeks’ rent maximum.
Sam
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Precisely…
The holding deposit is absorbed into the overall deposit received at the start of the tenancy and should have been protected by now and the prescribed information issued. The deposit is to be returned but it is important to unprotect it and notify the deposit protection company, within ten days of the tenant’s departure (some companies may differ). I believe this is to give you the time to do the check-out inspection and decide if the full deposit is to be returned based on the condition of the property.
If the tenancy goes into a periodic tenancy, i.e. rolling from month to month there is no need to re-protect it but if the tenancy is to be renewed by agreement the deposit needs to be re-protected and the PI reissued (My Deposits principles). I am not sure about the other deposit protection companies policies… When the new tenancy is established…