Deposit not protected in time

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    Deposit not protected in time

    Afternoon all, My current tenant is now leaving and i would like to make a few small claims from the deposit. I have found out that the letting agent that i used to set up this let did not protect my tenants deposit in the required 30 days. My questions are:
    Can i still make a claim from the tenants deposit knowing this
    Can i pursue the letting agent for breaching their contract and ask them to reimburse me the set up fee and/ or pay compensation to myself and the tenant.

    Thank you all in advance for your guidance.

    #2
    Originally posted by Laura1604 View Post
    Can i still make a claim from the tenants deposit knowing this
    Yes, but I really wouldn't unless the tenant is extremely happy for you to do so.
    Can i pursue the letting agent for breaching their contract and ask them to reimburse me the set up fee and/ or pay compensation to myself and the tenant.
    You can try and demand compensation for any loss that you incur as a result of their breach of contract - although it would be quite a detailed agreement for them to have actually broken it.
    They might not have performed a service to the required standard, so you might complain and seek compensation on that basis.

    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).

    Comment


      #3
      How many days/weeks/months was the deposit not protected after the 30days?

      Comment


        #4
        Thank you both. It was only 5 days after the 30 days had expired. Tenant is not happy for any deductions so i will approach the letting agency and ask them to cover the costs i will be asking for and see what they say. Many Thanks

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          #5
          Pay the deposit back in full with thanks for being such great tenants, and sue the agent

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            #6
            What actual financial losses would you incur if you return deposit in full, please?
            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

            Comment


              #7
              Originally posted by AndrewDod View Post
              Pay the deposit back in full with thanks for being such great tenants, and sue the agent
              They have been great tenants, there is just a couple of broken things, curtain poles, coat hook etc that need sorting. Would there be any grounds to pursue the agent ?

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                #8
                Originally posted by theartfullodger View Post
                What actual financial losses would you incur if you return deposit in full, please?
                Around £150 to include replace curtain poles, coat hooks and electrical socket that has been broken and repaint room that has had a colour change not agreed.

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                  #9
                  Is it worth it, for risk of agent informing tenant of their right to sue you for up to 3xdeposit out of spite? I'd not risk it.. Yes I know tenant could sue agent as well.

                  Tenant and or agent could be viewing this thread.
                  I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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                    #10
                    The agent has been very careless.I hold deposits myself because I do not trust them with my money. But they can be slow handing it over and then you have to chase the deadline.
                    All that hassle for a small sum when you are trusting a tenant with a major asset!

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                      #11
                      If it were me, I would first check how much the cumulative costs are and weight it up, if it's £150 I would just write it off down to experience, if it was more than i would follow the process with the deposit scheme, and put in your claim. It being just 5 days late I really can't see how any court can award up to 3 times the deposit. The agent certainly will not pay for it, so better find a new agent for the property unless you decide to DIY.

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                        #12
                        Originally posted by ash72 View Post
                        It being just 5 days late I really can't see how any court can award up to 3 times the deposit.
                        I agree that the issue would be at the low end of the scale, but the court can't award less than one times the deposit value as a penalty, even if it wanted to.

                        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).

                        Comment


                          #13
                          Lets not forget the law was changed from 14 tp 30 days after so many landlords & agents complained 14 days was too hard to do a simple bit of admin..

                          I do pray my agents are doing their deposit protection right.....
                          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                          Comment


                            #14
                            Given the penalty for not protecting the deposit can be up to 3x the monthly rent + legal costs, just pay the guy his deposit and be very friendly about it.

                            If he sues you, then bring the agent into proceedings - or sue them directly afterwards for reimbursement under breach of contract.

                            You cannot, however, sue the agent for a financial remedy of a loss you have not yet incurred - as ultimately you're the landlord and liable to the tenant.

                            Under the guidance, you'd likely receive a fine of 1-2 months rent, 3 is reserved for the most egregious of breaches. Either way, it's not worth the risk...

                            Comment


                              #15
                              For the avoidance of doubt, any penalty is based on a multiple of the value of the deposit, not the rent.
                              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).

                              Comment

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