AST contract with no deposit

[Byff]

Against all my better judgement, I've agreed to let out one of my properties to a close colleague. Only trouble is, they only have enough savings to pay a month up front but not enough for a deposit.

I have my standard contract which states a deposit of £xxx etc etc, but how can I word the contract to state that no deposit was taken and more importantly, that I'm not dropping myself in it with all the deposit protection bull that a LL has to adhere to.

I know this is all going to end tits up but I want to make sure I'm good while things are rosy.

[S6PNJ]

Whilst I wouldn't recommend it, surely within your AST where it says "A security deposit of £****.** is to be paid on or before....." (in my ASTs it is section 1.11 and 1.12) you simply enter a value of zero. As there is no deposit, so there is nothinn to register with the deposit scheme.

[Byff]

S6PNJ said:

Whilst I wouldn't recommend it, surely within your AST where it says "A security deposit of £****.** is to be paid on or before....." (in my ASTs it is section 1.11 and 1.12) you simply enter a value of zero. As there is no deposit, so there is nothinn to register with the deposit scheme.

That's what I thought - just wondering if it was as simple as that.

[blueg33]

We usually use £1.00 where there is no real payment. Contracts usually need a consideration to be paid to be valid (IANAL)

[S6PNJ]

blueg33 said:

We usually use £1.00 where there is no real payment. Contracts usually need a consideration to be paid to be valid (IANAL)

Is the monthly rent not considered consideration? If the 1st months rent is paid up front (as expected) then this is paid to signify the commencement of the contract. (IANALA) I am not a letting agency

[Rude-boy]

There is no requirement that i am aware of to accept or demand any form of deposit.

I am aware of one LL who has 40+ properties. They do not charge a deposit but a one off non returnable £250 admin fee on the start of every new tenancy. This has worked out significantly to their advantage over the last 5 years or so they tell me.

[blueg33]

S6PNJ said:

blueg33 said:

We usually use £1.00 where there is no real payment. Contracts usually need a consideration to be paid to be valid (IANAL)

Is the monthly rent not considered consideration? If the 1st months rent is paid up front (as expected) then this is paid to signify the commencement of the contract. (IANALA) I am not a letting agency

Yes the monthly rent probably is. I guess it may depend on when the lease starts in comparison with when its executed

[Sir Bagalot]

One of my tenants wanted something and we agreed an additional deposit would need to be paid. They didn't have the money to pay upfront was we agreed £100pm for 12 months.

Another tenant simply didn't have the funds but I had rented to them before so I let them move in with no deposit. 17 odd years later they're still with me

[dazwalsh]

Enter NIL in the deposit box, and away you go.