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rental deposit when tenants sign contract for second year

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Does anyone know where I stand regarding the deposit if my tenants want to sign a contract for another year.

At the moment the deposit is in the DPS. Can I just sign the contract as normal, don't take any deposit and when it comes to it carry the deposit over ?

 

I guess my worry is what happens if they decide near the contract start date to leave? Would they be able to get their deposit back if they had signed a contract for the new year (but not paid an extra deposit)?

 

I guess I could add a note to the deposit section in the contract stating that the deposit will carry over.

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Just tried speaking to the DPS about it and they were not very helpful - said the deposit would roll over.

But if they leave and try and get deposit back it would go to arbitration if we both dispute. No answer as to what that arbitration would conclude assuming they had signed the new contract (without additional deposit).

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Have the tenants extended on a fixed term or month to month contract.

 

A month to month (aka Statutory Periodic Tenancy) is the automatic default tenancy when a fixed term ends and allows the tenant to serve one months notice and the landlord has to serve two months to bring the tenancy to an end. 

 

When I extend a contract with a tenant who requires a fixed term I use an addendum to the original contract with provides the details of the fixed term extension and clearly states that all the remaining terms and conditions of the original tenancy remain in place. I use the DPS for my rentals and have not done anything with the deposits when a tenant extends on either basis. So far there has not been any issue with the DPS when they leave and claims agreed have been paid shared out. 

 

If you draw up a brand new tenancy agreement for a fixed term contract extension then I would have thought the deposit will require transferring and both parties agreeing to it through the DPS as it is in effect a brand new contract. 

Edited by Happy Valley

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Thanks for the reply.

Well we haven't signed a new contract yet but was thinking of the same year contract as before but with the different year on it. But I see the issue with regards the deposit/DPS.

Don't really want to just let it roll over so maybe I should go for your idea of an addendum to the original contract.

Might I be able to have a look at the addendum you use?

 

cheers

john

 

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1 hour ago, Happy Valley said:

When I extend a contract with a tenant who requires a fixed term I use an addendum to the original contract with provides the details of the fixed term extension and clearly states that all the remaining terms and conditions of the original tenancy remain in place.

 

Thanks for the reply.

Well we haven't signed a new contract yet but was thinking of the same year contract as before but with the different year on it. But I see the issue with regards the deposit/DPS.

Don't really want to just let it roll over so maybe I should go for your idea of an addendum to the original contract.

Might I be able to have a look at the addendum you use?

 

cheers

john

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Here is the one that I use. It's a simple document but does the trick for us. Should you use this below there is no guarantee for it's effectiveness nor is there any liability against me for providing the document. Ultimately it is up to you should you chose to use it or something similar.

 

Obviously you change the dates accordingly to suit the fixed period/date originally signed together with fixed extensions to date (if any) You can change the 6 months extension period to whatever has been agreed - some of mine are 12 month fixed term extensions.

 

Print two copies off and date them all the same. I as landlord sign them both send them out to the tenant (if not meeting) with a reply paid envelope and ask them to sign and return one copy whilst they retain one for their file. 

 

Addendum to the Assured Shorthold tenancy from 3 August 2019 to 2 February 2021(change dates to current tenancy term) at:

 

Insert property address as per original agreement

 

It is hereby agreed between the parties to this agreement that the tenancy will be extended for a fixed term period of 6 (change length as required) calendar months from 3 February 2021 through to 2 August 2021(change to insert own dates as required).

 

The rent for the period will be £insert agreed rent per calendar month and is payable as per the terms of the original agreement.

 

All remaining terms of the tenancy agreement dated 2 August 2019(change to insert date of tenancy signature) remain in full force.

 

 

 

Signed: ….............................                    Signed: …..............................

 

Landlord: Type Landlord Name                 Tenant: Type Tenant Name

 

Date: ….............................                         Date: ….............................

 

 

Please note where is more than one landlord or tenant to the agreement one signature is sufficient for this agreement to be binding.

 

Please note that this agreement only comes into force once it is signed and exchanged by both parties.

 

 

Edited by Happy Valley
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59 minutes ago, Happy Valley said:

Here is the one that I use. It's a simple document but does the trick for us. Should you use this below there is no guarantee for it's effectiveness nor is there any liability against me for providing the document. Ultimately it is up to you should you chose to use it or something similar.

Yes understood. And thanks a lot.

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