Ending a tenancy early - deposit

[sazzle84]

Hi

My tenant has just informed me that he will be ending the tenancy and moving this Fri. He signed up for a 12 month contract which does not end until July this year.

I have read through the contract and informed him that although he is moving, the contract states that he must continue paying the rent until his final payment in June. He has agreed to this but I'm not sure where either of us stand regarding the deposit.

Obviously, I will have to pay again to advertise which I would need to have regardless of if he had given me notice after the period or not. My partner believes that as the tenant has terminated the contract early he should lose the deposit and I can then use this to pay the fees for readvertising yet I thought the deposit should only be kept if there was work that needing doing if the tenant had left the place in a state and for repairs.

Any advise would be a great help as I would like the money to redecorate for the new tenants but I obviously need to adhere to the law and not rip my old tenant off.

[snags]

''My partner believes that as the tenant has terminated the contract early he should lose the deposit''

Is this stated in the contract though?

[ummmm]

If he signed up until July he has to pay until July. Give him back the difference....if there is any.

[ChuckFickens]

I take it early notice is not something you have covered in the tenancy agreement then? all mine have covered exactly what happens in this situation.

Why not ask the tenant deposit scheme what they reckon seeing as its them that will be holding the deposit and they are the experts. (they have got the deposit, haven't they? as it is a legal requirement)

[sazzle84]

It doesn't say anything about the deposit other than it should be held in the Tenancy Deposit Scheme. That is why I am unsure. It mentions everything bar that.

[craft1948]

Why should he lose his deposit, he may be leaving early but going by your OP he's paying you up to the end of the lease?

[China Doll]

I don't think that as a landlord, you're supposed to be holding on to the deposit. There's a goverment scheme set up for just this sort of thing and all the estate agents/properties I've been to lately are using independent deposit scheme to store deposits. Might be worth thinking about for your next tennent.

[snags]

^ Agree with craft... unless he has damaged anything or left the property in a state worse than when he moved in it seems a bit bloody tight that he should lose his deposit...

[sazzle84]

I advertised through an estate agents and I just have the contract that they gave me. No, this was not covered.

Yes, the deposit is held in the deposit scheme, I'm fully aware I would be breaking the law otherwise.

[237SJ]

When I was a landlord the deposit was for any damage to the property or unpaid bills. It was not for re-advertising or other costs associated with renting the property. I only ever withheld some money from the deposit on one occasion for damage done and I tried to be fair and not take any money for reasonable wear and tear.

[karenmac60]

If he is still paying up till the end of his agreement then he is doing nothing wrong and providing he hasn't caused any damage etc then you don't have any right to keep his deposit, do you? He's actually doing you a favour, in that the property will be empty but the rent will still be being paid, so you can get in and decorate and move new tenants in sooner. You would have to pay advertising costs and decorating materials regardless of when he moved out - seems unfair to expect your tenant to pay for these things.

[sazzle84]

I have clearly stated China Doll that I do not have the deposit, I am purely querying what happens now.

Snags, I would harldy say I was being tight when I have advised I do not want to rip him off and that I want to adhere to the law.

If you aren't going to read my question properly and offer relevant advise, please do not post.

[sazzle84]

Thank you 237SJ, that is exactly the response I expected.

[snags]

lol... please state exactly where I have posted something inappropriate...

[sazzle84]

I have placed all the facts above and I need not have bothered as half of it has been ignored and questioned. Only 237SJ has really answered my question.

Snags you have not said anything inappropriate yet I do not appreciate being called tight.

[snags]

Fair comment... 'tight' was perhaps the wrong word to use... how about 'unfair': in relation to your tenant having to potentially having to forfeit his deposit... for the reasons given above by myself in my post at 19.00.. an opinion echoed by other ABers on this thread...

[Buenchico]

From the Shelter website:
"Your landlord or agent is only entitled to keep all or part of your deposit if they can show that they have lost out financially because of your actions, for example, if you have caused damage to the property or you owe rent".

Source:
http://england.shelte...it_protection_schemes

As I can't see that you've lost out financially, I can see no valid reason for withholding any part of the deposit.

Chris

[China Doll]

Your post wasn't there when I typed my answer and I your original post read as though you held the deposit and not the scheme.

[Imp_88]

Your question is a bit stupid sounds like your wife is just money hungry. He's paying his rent to the end of the tenancy so, in effect, it is no different to whether he is in the property or not. I'm sure the contract does not state he must stay in the property for a minimum of 12 hours a day! He is paying rent and hopefully keeping it in good condition so why would you be able to take the deposit? You only need to advertise for the property as you would have anyway for a tenancy to start when your existing tenants finishes so you are being 'tight', I hate naive money hungry landlords like you.