Deposit paid by the Council

If the Council agree to pay you a Deposit or Bond, you should be speaking with the case worker at the homeless unit. You need to consider the following:

Why are the Council paying money to house them?

Is the Council paying a deposit, finder’s fee or performance bond which may have conditions, such as only secured against damage not rent arrears? Some bonds are only valid for 12 months. You should request a copy in writing of what the money is for.
If a deposit, to whom should the money be returned at the end of the tenancy? If the Council you MUST provide a copy of the Prescribe Informationto the council.
Even ask the Council to confirm in writing that the Tenant has not been evicted.
If you wish to discuss the claim you may have to complete this form.
Some Councils insist on having a signed tenancy agreement from you. Provide them an AST but NOT signed until you have completed your vetting and received funds.
Some Councils offer a scheme whereby they guarantee a Tenant provided you agree to rent for three years. You must read the information. The devil really is in the detail. Who pays the rent, pays for damage, maintenance and who deals with returning vacant possession back to you?

On many occasions Tenants are given such bonds/deposits by the Council:

For they are homeless.
To reduce Housing Lists.
They do not qualify for Social Housing for they have been or are being evicted, for rent arrears.
They are a problem Tenant.
They are an Asylum seeker - be careful as there are some very complicated rules re: civil law regarding this.
Some Councils insist on a longer tenancy - for this gives the Tenant more security.