Rent deposits

Copyright © 2024 LexisNexis

This Overview summarises what a rent deposit is, including obligations to top up the deposit and provisions in respect of withdrawal (‘draw down’), how deposits are held, and what the usual provisions are in a rent deposit agreement in respect of repayment of the deposit. Further materials are available in our subtopic on Rent deposits.

A rent deposit is a sum of money deposited by a tenant when it takes a lease; it is deposited as security against non-payment of rent and other breaches of the lease. They are often given where a lease is either assigned or granted and the incoming tenant cannot supply the landlord with evidence of sufficient financial worth. They may be offered in place of or in addition to a guarantee to improve the tenant's covenant strength.

Rent deposit agreements usually cover 'any' default or breach by the tenant, and not just rent arrears.

The tenant is usually obliged to 'top up' the deposit if the landlord has made a withdrawal, or if the rent increases at review.

The rent deposit deed should expressly state the circumstances in

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Property Disputes News

MHCLG announces leasehold reforms for 2025 – implementation of LFRA 2024 and modernisation of commonhold

The Ministry of Housing, Communities and Local Government has announced a comprehensive set of leasehold reforms, scheduled for implementation in 2025, aimed at providing increased rights and protections for owners of five million leasehold homes. Key measures include the implementation of the provisions in the Leasehold and Freehold Reform Act 2024 (LFRA 2024) in January 2025, which remove the current ‘two-year-rule’, enabling leaseholders to extend their lease or purchase their freehold without waiting two years after their initial purchase and those which will allow homeowners to take over the management of their building, and ensure more cost transparency and facilitating challenges to unfair service charges.

Property Disputes weekly highlights—21 November 2024

This week's edition of Property Disputes weekly highlights includes: a Court of Appeal case on the court’s jurisdiction to vary a suspended possession order, Upper Tribunal decisions on the impact on limitation of non-payment of an application fee, and the reasonable repair assumption in determining rateable value, and a High Court case regarding adverse possession and trespass. It also includes the launch of the Law Commission’s consultation on the right to renew business tenancies under Part 2 of the Landlord and Tenant Act 1954, as well as the UK Judiciary’s release of the Senior President of Tribunals’ annual report for 2024.

175th Practice Direction update—in force 20 November 2024

The Master of the Rolls and the Parliamentary Under-Secretary of State for Justice have approved the 175th Practice Direction (PD) update to the Civil Procedure Rules (CPR). The amendments come into force on 20 November 2024.  The 175th PD update contains amendments to the online Damages Claims Pilot under CPR PD 51ZB (the DCP), in order to correct a misalignment between the rules in CPR PD 51ZB and the operation of the DCP digital service, concerning the automatic dismissal of claims. CPR PD 51ZB is updated to state so that within four months of the date of issue of the claim, the claimant must not only notify the defendant of the claim and the claim details, but also notify the DCP that they have taken these steps to avoid automatic dismissal of the claim.

Law Commission launches consultation on right to renew business tenancies

The Law Commission has launched a consultation to examine how the right to renew business tenancies under Part 2 of the Landlord and Tenant Act 1954 (LTA 1954) functions and whether it meets the needs of business tenants and landlords. The consultation seeks to assess the efficacy of the current ‘contracting out’ model and explore alternative models, including mandatory security, the abolition of security of tenure, and a ‘contracting-in’ approach. It also examines which types of business tenancies should benefit from security of tenure. The consultation closes on 19 February 2025, with a second consultation paper expected to follow based on the responses received.

View Property Disputes by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Where a ‘new lease’ is not registered at the Land Registry and was subsequently assigned, and the

Where a ‘new lease’ is not registered at the Land Registry and was subsequently assigned, and the reversion also transferred, what is the status of the lease between the current landlord and tenant and would the current landlord be able to pursue the tenant for unpaid rent?The grant of a tenancy for

Set-off and deductions from rent

Set-off and deductions from rentThis Practice Note considers set-off provisions in leases and whether a tenant can set off a claim against a new landlord after assignment. A tenant is entitled to set off liquidated claims for damages, at law, and unliquidated claims, in equity, for damages for

Claims for use and occupation, mesne profits, double rent and double value

Claims for use and occupation, mesne profits, double rent and double valueThis Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be claimed.Claims for use and occupationA claim for use and occupation is possible

A lease of commercial premises contains a rent review clause, but does not provide for the reviewed rent

A lease of commercial premises contains a rent review clause, but does not provide for the reviewed rent to be recorded in a rent review memorandum. If the landlord requires the tenant to enter into such a memorandum, is there any danger that this will constitute a variation of the lease so as to
Where a ‘new lease’ is not registered at the Land Registry and was subsequently assigned, and the

Where a ‘new lease’ is not registered at the Land Registry and was subsequently assigned, and the

Where a ‘new lease’ is not registered at the Land Registry and was subsequently assigned, and the reversion also transferred, what is the status of the lease between the current landlord and tenant and would the current landlord be able to pursue the tenant for unpaid rent?The grant of a tenancy for

Set-off and deductions from rent

Set-off and deductions from rent

Set-off and deductions from rentThis Practice Note considers set-off provisions in leases and whether a tenant can set off a claim against a new landlord after assignment. A tenant is entitled to set off liquidated claims for damages, at law, and unliquidated claims, in equity, for damages for

Claims for use and occupation, mesne profits, double rent and double value

Claims for use and occupation, mesne profits, double rent and double value

Claims for use and occupation, mesne profits, double rent and double valueThis Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be claimed.Claims for use and occupationA claim for use and occupation is possible

A lease of commercial premises contains a rent review clause, but does not provide for the reviewed rent

A lease of commercial premises contains a rent review clause, but does not provide for the reviewed rent

A lease of commercial premises contains a rent review clause, but does not provide for the reviewed rent to be recorded in a rent review memorandum. If the landlord requires the tenant to enter into such a memorandum, is there any danger that this will constitute a variation of the lease so as to