Deposit/lease extension issue

smack_monkey

Hello folks,

My girlfriend and I are due to move into her current place soon. Her two flatmates are moving out. We secured a reduction in rent from the letting agency.

The agent told us to reimburse the flatmates for their deposit, and has sent on the new letting agreement to be signed - without a commitment to view the property and sign off on its condition. They have also insisted that the deposit value remain the same, as this is a continuation of the current lease because my girlfriend is staying on.

I accept that it's standard practice to have new tenants reimburse exiting tenants. But we feel the deposit should be the same amount as the rent, and even if we can't secure that, the agent should inspect and sign off on the property before any money changes hands.

What we'd like to know is:
1) Are we entitled to get the deposit lowered to the same amount as the rent?
2) If we succeed in that, shouldn't the agency/landlord be obliged to pay the exiting flatmates the difference of the deposit (if we give our new lower deposit to the flatmates)?
3) Are we entitled to have the apartment inspected before we sign the new lease?
4) Can we insist that a lease be drawn up that is considered new and not a continuation?

We have contacted Threshold by email and will call them on Monday, but I thought I'd see what the response was here.

Cheers!

djimi

I would insist that the landlord/letting agent sort out the deposits with the previous tenants and let you start our fresh with your own deposit after the accomodation has been inspected. Otherwise you are leaving your deposit vunerable in the case of there being pre-existing damage to the accomodation from the previous tenants which would come out of your deposit at the end of your lease.

convert

I agree with dj on this. I've lived in quite a few places over the years and have never had to give the exiting tenant their deposit. Moreover, even if I was asked to do so, I'd probably refuse due to the fact that I'd prefer to give my deposit to the landlord or letting agency so as to have a record of it. It also stops things getting messy.

I'd also request that the agency come and inspect the place before you sign the lease. It might also be a good idea to take photos of the place before you move in, and have the agency sign something saying that they've seen the photos and inspected the place so that you can't be held liable for something that you didn't do at the end of your tenancy.

djimi

Oh and its not a continuation of the current lease as two of the three leaseholders will no longer be in the accomodation, so dont let the landlord try that one on with you. The old lease is gone, and they must draw up a new lease for you and the girlfriend.

goat2

smack_monkey wrote: »

Hello folks,

My girlfriend and I are due to move into her current place soon. Her two flatmates are moving out. We secured a reduction in rent from the letting agency.

The agent told us to reimburse the flatmates for their deposit, and has sent on the new letting agreement to be signed - without a commitment to view the property and sign off on its condition. They have also insisted that the deposit value remain the same, as this is a continuation of the current lease because my girlfriend is staying on.

I accept that it's standard practice to have new tenants reimburse exiting tenants. But we feel the deposit should be the same amount as the rent, and even if we can't secure that, the agent should inspect and sign off on the property before any money changes hands.

What we'd like to know is:
1) Are we entitled to get the deposit lowered to the same amount as the rent?
2) If we succeed in that, shouldn't the agency/landlord be obliged to pay the exiting flatmates the difference of the deposit (if we give our new lower deposit to the flatmates)?
3) Are we entitled to have the apartment inspected before we sign the new lease?
4) Can we insist that a lease be drawn up that is considered new and not a continuation?

We have contacted Threshold by email and will call them on Monday, but I thought I'd see what the response was here.

Cheers!

i have 14 yrs experience in this field, i smell a rat, do not give anything on to the tenants leaving, their deposits were in the past and are not your business, the letting agent is supposed to give back deposits, they are supposed to come check that all is well with the house and if so, they are to give the deposit back, after all your agreements and signings are with the letting agent, it is not your house to be handing a deposit back, smell a big huge rat now

3DataModem

The above poster is correct. You should be careful.

To answer your specific questions
1 - no you are not entitled to a lower deposit just because rent drops.
3 - abolutely should have it inspected... I would insist. You are signing lease and agreeing to return apt in CURRENT condition.
4 - If tenants have vacated that are on old lease then yes.