Agent I use has potential new tenants for one of my properties.

Its a father and daughter both work but he has an IVA 2 years ago.

Unable to provide a working guarantor with home ownership.

Ageng now saying pointless taking a deposit as almost all claims against deposit are getting ruled in tenants favour even with overdue rent.

After much toing and froing I suggested 3 months rent in advance and this to continue until end of the tenancy.

At end of tenancy (if ever) I have said to agent that tenants will be repaid advanced rent in full (assumming rent up to date) but provided a schedule prior to this of any work that needs to be done BUT most importantly not connecting them as one transaction.

Is this legal or in the event of a challenge would I get hit with not registering a deposit ?

I would dispute that & think the agent should find a better deposit scheme ( I use mydeposits). I have 100% success rate withholding deposits ( admittedly 2 for 2 )

You may run into problems withholding advance rent in lieu of damage/repairs I would seek legal advice on this. The NLA advice line is excellent & would tell you where you stand on that score.

( I sound like a broken record in that I always advise people to use the NLA but I cannot stress enough how invaluable it is, especially considering joining is only £80 - and NO I'm not on commission - I wish )

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The Agent saying "pointless taking a deposit" I would, without any doubt, question that one, & his reasoning. Poor practice surely particularly given the background of the proposed Tenant. Even if you opt for rent in advance then still take a deposit !! I have on a number of occasions done both.

I use DPS & have just had a full two months deposit returned to me against dilaps. They take their time but .....

Worked with agent for close to 10 years and trust their call as simply have bought properties on their say which have proved excellent and they have refused to allow me buy properties which ended up in auctions houses 2 years later at 50% off sale price and even then their advice was still stay away.

Highlighting damage to property before leave with estimate costs and agreement and getting them to agree to set off advance rent is the key.

Hi,
John_Mac is right take some proper advice. However as I understand it from the RLA additional advance rent is being seen by the courts as a deposit and therefore should be protected. An exception would be if you take quarterly rent payment in advance but with someone having trouble budgeting this would be worse and still would not provide you with a balance at the end. If you deduct damages from rent and the tenant objects or sues, the rent will be seen as a deposit that was not protected - and they tenant may still sue you even after agreeing informally to the deduction! Maybe you should just walk away from this tenant and find another if a guarantor cannot be found. Its tempting to get them in and you can easily persuade yourself however think carefully.

It sounds like the agent is just being lazy. Take a deposit and use mydeposits, do it yourself if your agent won't. Then you may want to question why you are using that agent.

Guys I have been clear that do NOT intend to attempt to withhold advance rent repayment when tenant leaves as that legally gets me into trouble.

Tenants will be supplied a schedule of any repair work if required when they leave and asked to pay for it, SHOULD they pay for it out of returned deposit that is up to them BUT I will NOT withhold the advance rent.

Agent I trust, understand comments about agents BUT based on long history I have, I will continue to trust them.

IF you have separated the repairs and advanced repairs then you are not holding a deposit.

Hi Oliver, If you are happy to refund them the rent then trust them to pay for the damage then you should be ok. If you do trust them to do this, you could ask yourself if you actually need a deposit at all?

Of course its up to you, all business is about balancing risks however remember my original comment that the courts are often taking excess advance rent (i.e. more than the period of the rent) to be a deposit that should be protected.