Taking deposit by installments?

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T
TenantsRus
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I'm thinking of offering an AST to a couple who are struggling to raise the full amount of 1 months' rent (480) plus the deposit (700) in advance. This does go against the grain for me but I feel that otherwise they are a good bet, and that if they can provide 500 deposit, plus top it up by 50/month for the next four months, that will be OK.

However, how would this work with regards not falling foul of the deposit regulations (I use the Deposit Protection Service)? Can you deposit an initial amount with them and then top it up?

Alternatively I suppose I could reallocate the money they can pay upfront so that the full deposit is covered and registered, but they effectively only pay about two weeks' rent initially (280), followed by 4 monthly payments of 530, reverting to 480 monthly thereafter (and are effectively in arrears for the first 4 months). That option doesn't sound great to me either

Any thoughts please?!

11/09/2008 00:00

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