It was an AST.
We asked for the first and last month's rent as a substitute for registering the deposit. It says in her AST that when she moved in she was paying a first and last month's rent, not a deposit. We did this on the advice of a reputable high street estate agent.
We have it in our company bank account.
In the contract the tenant signed, she agreed that her payment was for their first and last month's rent. It is not their deposit.
Doesn't this mean that we can lawfully use the first and last month approach?
We never use the last month for a deposit in case they trash the place. We use the last month to pay their last month, nothing else.If they trash the place, we suffer the costs.
We don't deduct anything from their last month that they pay when they move in. It just means that on their final month, they don't need to pay rent.Surely that's legally acceptable?
The tenant didn't pay her October rent, and didn't find a replacement for herself. Can we use her last month that she paid when she moved in to cover her for that October rent? She paid her November rent but moved out a few days later - but didn't pay her October rent.
So are you saying that we need to abandon the first and last month approach, then register that last month as a deposit, then make an appeal to a deposit scheme to release that month's income to us on the basis that she didn't pay her October rent?
We're not trying to avoid the law - we're trying to avoid a mess where tenants run off without paying their final month and we have to pursue them at cost.
Is this the wrong appoach?
In the tenancy agreement it states that the tenant is paying first and last month's rent.
So does that mean we can legally use this approach?
Ok thank you, ***** ***** return to the question of this tenant who moved out a few days after paying her November rent date, but didn't pay her October rent, are the steps I need to take:
1) register the last month as a deposit
2) make a claim against her for the October rent to the tenancy deposit scheme?
Ok thank you.