Can the tenant pay the deposit in instalments?

I can’t imagine why any landlord would want to start a tenancy without taking the full deposit in cleared funds up-front but I did notice that the recently re-vamped DPS website now accepts multiple payments for a deposit so perhaps it is something landlords and agents do (for whatever reason) but how does this fit in with the laws on tenancy deposits?

Looking at S212 of the Housing Act 2004 for clues…

“tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for—

(a)the performance of any obligations of the tenant, or

(b)the discharge of any liability of his,

arising under or in connection with the tenancy.

The key part in here for me is ‘any money’ so whether that is the £10 first instalment or the £590 final instalment it is all money held as a deposit so I guess that at each payment the landlord has 30 days to protect that payment – sounds cumbersome.

Do you take desposits on instalments? why?

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