What can landlords use the tenant’s deposit for?
The tenant's deposit is the tenant's money by law, so what can you use it for?
By law, the deposit remains the tenant’s money throughout the tenancy.
If you are protecting the deposit in an Insured scheme, you could invest this for the length of the tenancy, on the understanding that at the end of the tenancy, the tenant is entitled to a full refund unless you can prove that you have a valid claim for deductions.
Tenants do sometimes request that their deposit be used for rent - commonly in the last month of their tenancy.
However, it’s not advisable for landlords to agree to this, as that means there will be little or no money left if you want to make a claim for deductions when the tenant leaves.
If you do agree, it should be clearly put in writing and signed by both parties.
Of course, if the tenant is in arrears at the end of the tenancy, then that rent can be deducted from the deposit.
