Tenancy Deposit used to offset delayed LHA payment.

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F
faz
155 Posts
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After being made redundant my tenants have applied for housing benefit and have been told that it will be paid a month in arrears. Their rent is paid one month in advance so they have asked if I will accept a delayed payment for December. In reality this will mean they will fall into arrears of one month. I have suggested as a way to get around this that they sign over their 450 deposit to me to cover the rent for December. In this way their rent is kept up to date and if/when they leave the final LHA payment will be kept by them in place of their deposit.
Do other members think this would be an acceptable arrangement provided it is fully documented and signed and dated by all parties?
It seems to me that the only risk is for me as I would no longer retain a security deposit.
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20/11/2010 00:00

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