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Acceptable deposit for initial discounted rent

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Author Topic: Acceptable deposit for initial discounted rent  (Read 34 times)
Posts: 3

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« on: July 28, 2020, 12:51:43 PM »

Good morning!

I let a property for 650 per month, it's currently one agreement covering two tenants.   One tenant is moving out and I have offered the remaining tenant a discount for three months or until they find a new housemate - whichever is sooner.   I'm going to prepare a new agreement for three months, turning into a rolling agreement thereafter, so rent will be: 425, 485, 485 and 650 thereafter.

My question is can I still ask for 650 deposit?  My opinion is that the risk to me is the same, and officially the rent is 650 - I am just being nice because of covid!  My tenant has queried it so i wanted to get a second opinion before I reply.

Thanks for your advice.
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« Reply #1 on: July 29, 2020, 03:16:30 PM »

I don't like the idea of starting out with a rent of 425 but taking a Deposit of 650... yes, you know you have the intention of raising it, the Tenant knows, everyone agrees on that... but I wonder if the Deposit Protection Scheme systems can handle something like that... at 425 per month the maximum Deposit you could take is 490.38. At 650 per month it's 750.00. Why not simplify your life and deal solely in 650s... but assure the Tenant verbally, or via a Special Condition noted in your AST, about the early reduction?

I don't understand why you're being nice because of Covid... I've only let one property in this timescale... but I had more enquiries for it than I have ever had in normal times... it was like a feeding frenzy.
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