Deposit Paid by Third Party – Who Is the Deposit Repaid To?
We are setting up a joint tenancy with two guarantors (the mother and grandmother of each tenant).
One of the guarantors (grandmother) will be paying the deposit.
Deposit to be protected in DPS custodial scheme. Grandmother will need to be listed as a third party on prescribed information.
Who is the deposit repaid to at the end of the tenancy? What information does the DPS need about the grandmother? And is there anything else we should be aware of?
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Many landlords take a deposit from tenants to hold for the duration of the tenancy. When the tenant moves out, this is returned to the tenant less any deductions permitted: typically for damage (above fair wear and tear), additional cleaning, and cover any outstanding rent. Note: deposits can only be withheld if stipulated what the deposit is being held against in the contract.