Deposit (unprotected)

[UNKNOWN1991]

Hi,

If a deposit for a tenant has not been protected and the current tenants have now left.
Work needs to be done and they have some discrepancies. The deposit was held in a private bank account.

What happens next if this goes further?

Thanks

[Interlaken]

The tenants could claim X 3 the deposit + costs at court. It is a ticking time bomb. I hope you weren't thinking of taking money from the deposit?

[leaseholder64]

What does "Work needs to be done and they have some discrepancies" mean?

Basically, if you attempt to withhold the deposit, the tenants can sue for its return and try to get a 3x penalty thrown in. If you try to sue for damage to the property, the tenants could counterclaim for the three times penalty. The court may or may not allow the penalty claim as part of a small claims procedure. If the penalty isn't processed then, they have six years to claim it, but it will be the full County Court procedure. They may bring a no win no fee lawyer on board, in which case they will try to settle out of court with a large cost element going to the lawyer.