option 1 - alternatives to tenancy deposit

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yanike_640
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I charge only 125 rent per week, so an insurance-based deposit scheme (option 3) would not be worth it. I am considering option two, the dps.
However, I think I may opt to not take any deposit, as such. My future tenants have already paid me a 500 deposit in good faith, so that I may hold the property for them prior to the tenancy agreement starting. They have also said they will pay two months rent in advance and the AST will reflect this.
In the RLA document centre, advice given in relation to this suggests that the 'good faith deposit' would not be caught by the tenancy deposit scheme as long as the tenants are not obliged to move into/live in the property. It also says that the AST should omit any such obligations... I have read the AST again and I cannot find which clauses to change in order to omit these obligations. Could you please advise?
In addition, I am wondering whether to change clauses A7&9 of the new RLA AST to reflect the fact that I have a 'good faith deposit'...or whether to just leave it as is and put nothing in boxes q&r.
28/08/2007 00:00

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