Looking at social media recently, we see many debates from people regarding “damage deposits” and what is acceptable and legal etc.
Some people have even suggested that taking more than one month damage deposit is a scam by the real estate agents.
In our experience of running a lettings and rentals company for 15 years, we have worked with many lawyers and legal entities and this is what we have concluded. (This is our opinion of course).
The law states that you can take one month damage deposit, but what it also allows you to do is to take an additional deposit should you wish. For example, against non payment of utilities or non payment of rent.
Unfortunately in an ideal world, all tenants would pay their rent on time, pay their utilities in full and also look after the property, but we know this is not an ideal world. In actual fact, it can take up to 6 months to evict a tenant from a property. It can take a local electric company up to one year to disconnect a tenants utilities for non payment. So, even the two months damage deposit that is taken does not even touch the surface. This is the reason why property owners and agents take a higher deposit or request higher payments in advance. Put yourself in their shoes, would you want to lose such a large amount of money possibly.
99% of rental tenants are amazing, but all owners need to protect themselves against the 1%. All damage deposits are returned at the end of the tenancy, so the money in question is just held in a holding account for both parties protection.
Like any agreement or contract. The legal standing is what is written and agreed in that contract. If you are not happy about anything, then do not sign it or agree to it. Signing a rental contract of any kind is confirmation you agree to the terms within it. If you are unsure in anyway, Marbella Lettings are more than happy to help you at any point, or equally you can contact your lawyer or one that we can recommend.