Using a tenant's deposit to cover rent arrears before taking out a new AST agreement with them
Tenancy Deposits

GaJaHa69
GaJaHa69
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4 Posts
2 years ago
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I am seeking to take on the tenants who have been in my property since February 2021 and whose tenancy up until now has been managed by my letting agents. The tenants are currently one month in arrears with their rent.

The Letting Agents have agreed to pay the one month deposit that they collected from the tenants back into my account for me to protect in a Tenants Deposit Scheme after I sign a new Assured Shorthold Tenancy agreement with the tenants. The letting agents had not done this previously which is one of the reasons I do not want them managing my property anymore. However, I am still owed one month rent arrears by the tenants.

I have a good relationship with the tenants as we have both been messed around by the letting agents for the last 10 months. I am therefore proposing to suggest to the tenants that I take their deposit to cover their one month rent arrears, and that they instead purchase a Zero Deposit Guarantee which I have seen is an option on the NRLA website. Would this seem a viable way forward so that I can be compensated for my rent arrears and the tenancy can be protected with a deposit? Any advice would be greatly appreciated.

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