Unusual Deposit Arrangement | The Tenants' Voice
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Unusual Deposit Arrangement

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291 views 3 replies latest reply: 04 July 2017

I am a lodger with other lodgers, and have a live in landlord.

When I first moved in I paid a deposit and one month’s rent.

I was told that the deposit would not be returned, but would be used as rent for the final month once I handed in my notice.

I have nothing in writing regarding the deposit, only a receipt for the deposit and rent (paid in cash). I am wondering if I should ask the landlord to sign a note making it clear that the deposit will not be retured, but will be used to cover the final month’s rent.

Or should I leave things as they are.

What do you think?


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Since you have a receipt for the deposit being paid, you can just leave things as they are. 

The final month will be deducted from the deposit and you go your separate ways. This is a somewhat common practice, when there is no damage or any property issues at the end of the tenancy. 

Other than that you can check some of our articles on lodgers and tenancy agreements.




Thank you.

I did not know that it is common practice.

Why is this scheme used. Why not just take rent per month?


Hi, All landlords are legally obliged to register your deposit with a government registered deposit scheme such as My Deposits, Tenancy Depsosit Scheme. They should then provide you with a deposit certificate.  It is not normal practice for them to take that deposit to use as the final month’s rent. You should then get the deposit back providing there are no damages to the property etc. I would query with the landlord.


Hope this helps




Residential Lettings Manager

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