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Thu 2 April 2020
“I am a tenant and don’t want to leave my tenancy but can’t pay overdue rent or any of this month’s rent. Can I use my deposit to pay it?”
A question we as agents, and landlords, are being asked as a result of the Coronavirus crisis and the financial pressures many tenants find themselves under.
The answer is no. The tenancy must have ended before any party may use the end-of-tenancy process. Tenancy deposit legislation is written in a way that makes it clear on this point.
While the tenancy is ongoing, the landlords should not use the deposit for the arrears and should, under Government guidelines, work with the tenant to establish a payment plan.
If the tenancy has ended, the landlord could claim the deposit to put against any rent arrears that may have built up, but still bearing in mind there may be other deposit issues to deal with.
If you need advice then please call one of our lettings team, who are still available to help.