No "deposit" taken. Two months "rent" in advance.
Re-newed [and increased rent] existing Housing Benefit tenant's AST just as new Deposit Protection Scheme came into force, but used ARL template TA. Indicated on front page [with Tenant's agreement] that no deposit was held, but taken two months rent in advance as tenant was always paying late.
It seems that when tenant has presented new agreement to local Council for HB application, they have seen two months rent in advance has already been paid and decided not to pay first two months HB!
Tenant is now about to vacate and is expecting full refund of "deposit" even though I have explained that end-of-year rent account is two months short and I have no "deposit".
Tenant is threatening legal action re Deposit Protection Scheme.
1. Did I correctly use ARL's TA and has this issue come up before?
2. Was I entitled to use tenant's previously held Deposit [before new DPS rules came in] as advanced rent? Tenant did agree!
3. Where do I stand legally with DPS rules?
Any advice gratefully appreciated.
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