Deposit not protected in time

[Laura1604]

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.

[jpkeates]

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.

[ash72]

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

[Laura1604]

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

[AndrewDod]

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

[theartfullodger]

What actual financial losses would you incur if you return deposit in full, please?

[Laura1604]

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 ?

[Laura1604]

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.

[theartfullodger]

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.

[Codger]

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!

[ash72]

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.

[jpkeates]

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.

[theartfullodger]

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.....

[hybrice]

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...

[jpkeates]

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