The Expert Landlord by David Beattie

Author:David Beattie
Language: eng
Format: epub
ISBN: 9781868428472
Publisher: Jonathan Ball Publishers
Published: 2018-01-24T00:00:00+00:00

Confirming receipt of the security deposit to the tenant. When a tenant has paid their deposit, you are required to issue a receipt. This receipt must specify the names and surnames of the tenant and landlord, the name and signature of the person receiving payment, the address of the property, the amount of the deposit and the date it was paid.

Investing the deposit. According to the Rental Housing Act, the landlord is legally obligated to invest the tenant’s deposit in an interest-bearing account with a financial institution with a minimum rate of interest applicable to a savings account. This interest is due to the tenant. The tenant is entitled to request written proof of the interest earned, and the landlord is obliged to provide this proof if the tenant requests it. It is a good idea to inform your tenant into what kind of account you have placed their deposit and what kind of interest they will be earning. When an estate agent has placed your tenant, and as part of their placement service collected the first month’s rent plus the deposit, follow up with the agent to make sure they transfer the deposit into your account. Communicate to the tenant that this has been done; often the tenant will think the estate agent holds their deposit because they signed the lease with them.

Tenants are not allowed to use their deposit as rent. If they fail to pay the last month’s rent they are committing a breach of lease and the landlord is entitled to take the necessary legal action, including blacklisting the tenant. On this note, don’t be persuaded by tenants who request to use their deposit in lieu of rent in tough times.

It goes without saying that the landlord can’t touch the deposit until the lease is concluded. The tenant’s deposit is not a convenient fund for repairs, maintenance or improvements.

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