Tenancy Deposit used to offset delayed LHA payment.
Other

faz
faz
27 Thanks
182 Posts
13 years ago
1
After being made redundant my tenants have applied for housing benefit and have been told that it will be paid a month in arrears. Their rent is paid one month in advance so they have asked if I will accept a delayed payment for December. In reality this will mean they will fall into arrears of one month. I have suggested as a way to get around this that they sign over their £450 deposit to me to cover the rent for December. In this way their rent is kept up to date and if/when they leave the final LHA payment will be kept by them in place of their deposit.
Do other members think this would be an acceptable arrangement provided it is fully documented and signed and dated by all parties?
It seems to me that the only risk is for me as I would no longer retain a security deposit.

Please Login

You must be logged in to participate in our forums, to continue please login below.

Not a member? From only £99 you can join in the discussion and get access to member's only resources and services.

As the home for landlords, the NRLA are here to help you save time, save money, and stay compliant. NRLA membership gives you access to a vast range of expertise, resources, and exclusive member benefits and savings, designed to help and empower members. We also play a pivotal role in campaigning and championing the interests of landlords.