Protected deposit

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    Protected deposit

    Hi I had a joint tenancy agreement where one tenant left and the remaining brought someone new in. Towards the end of a no break clause contract the new tenant left on bad terms. They are now claiming they paid me for their portion of the deposit and taking action for not protecting this. I can find no record or evidence that they paid me. They claim it was cash. The full amount was deposited at the beginning in the lead tenants name ( this is the original and remaining tenant ). If they paid cash to the other tenant I can not say. Do they have a legal leg to stand on???

    #2
    You have a number of issues.
    It's normally not possible to assign tenancies and change tenants in the way you describe.

    The thing to do is to end the first tenancy when one tenant leaves, sort out the deposit and so on and start a new tenancy with the new tenants - take a new deposit and so on.

    The problem is that the deposit you received at the start was the property of the two original tenants, not just the "lead" tenant.
    There's no such thing as a "lead" tenant - other than for deposit protection (who need one person to deal with about any issues).

    It's quite possible that the incoming tenant paid the outgoing tenant their share of the deposit, so they weren't out of pocket.
    If that's the case, you have never received the deposit and haven't an obligation to protect it (because it was actually protected).

    If they did give you some money as a deposit, you have received it and have to protect it.
    It shouldn't matter about evidence, you either received the money or you didn't - surely you remember?
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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      #3
      ….Unless you come across an old email from you telling the new tenant to pay the outgoing tenant 'your share of the deposit'

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