Deposit Issues..Help please?

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    Deposit Issues..Help please?

    Hi.
    i hope you can all help me again as you have done so in the past, and as before i would be v grateful.

    I have tenants that have vacated the property.

    The tenancy was for a period of 8 months from 30.10.05 - 30.06.06 (if i remember correctly as i dont have the paperwork with me here at work).

    Anyway, they notified me around middle of MAY that they would leave end of May! Leaving a whole month early plus with only half a months notice.


    The property is in good order and they and i have had a reasonable landlord / tenants realtionship. Rents on time, etc. and i being quick to repair or carry out any maintenance work.

    The problem is..i know they have been ok but they have left a whole month early! So ..

    1) Does this mean they breach contract and i Could (if i wanted to) keep the deposit?

    2) Would it be an option to give only some of it back (seeing as they were ok)? Or would that be a problem from my side of the contract?


    I would really appreciate any views, information, guidance on this as i would like to do it the right way of cours, but within my rights also.

    Many thank in advance ...TM

    #2
    Originally posted by T.M.
    Hi.
    i hope you can all help me again as you have done so in the past, and as before i would be v grateful.

    I have tenants that have vacated the property.

    The tenancy was for a period of 8 months from 30.10.05 - 30.06.06 (if i remember correctly as i dont have the paperwork with me here at work).

    Anyway, they notified me around middle of MAY that they would leave end of May! Leaving a whole month early plus with only half a months notice.

    If your AST was for six months then the fixed term would have ended after 29th April. The tenancy then became a periodic one requiring the tenancy to give at least one month's notice to the Landlord, and the notice to expire at the end of a rental period. Check your AST for the details.

    If the notice was served in the middle of May it would have to end the tenancy on 29th June and not 29th May



    The property is in good order and they and i have had a reasonable landlord / tenants realtionship. Rents on time, etc. and i being quick to repair or carry out any maintenance work.

    However good the tenancy relationships may have been you have lost one seventh of the rent that should have been paid and this is not acceptable

    The problem is..i know they have been ok but they have left a whole month early! So ..

    1) Does this mean they breach contract and i Could (if i wanted to) keep the deposit?

    YES

    2) Would it be an option to give only some of it back (seeing as they were ok)? Or would that be a problem from my side of the contract?

    Send a letter to your former tenants setting out the facts and that it is your intention to retain the deposit to cover the lost rent. If you have been able to relet the property before June 29th the amount of deposit you decide to retain could be adjusted accordingly. See if your former tenants are aggrieved. If they moved to their financial advantage they may take the lost deposit as part of their balance sheet


    I would really appreciate any views, information, guidance on this as i would like to do it the right way of cours, but within my rights also.

    Many thank in advance ...TM
    ..............
    Vic - wicked landlord
    Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
    Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

    Comment


      #3
      Wildlife

      Er NO. it doesn't mean that T.M can keep the deposit !!

      The most that can be witheld from the deposit is that of teh missing rent and even then the LL had a duty to mitigate losses. So if the property is re-let within a week, only a weeks worth of rent can be witheld.

      Zoe

      Comment


        #4
        Originally posted by zoe
        Wildlife

        Er NO. it doesn't mean that T.M can keep the deposit !!

        The most that can be witheld from the deposit is that of teh missing rent and even then the LL had a duty to mitigate losses. So if the property is re-let within a week, only a weeks worth of rent can be witheld.

        Zoe
        Zoe..... T.M made it quite clear that there was probably one month of rent arrears - that would usually be equal to the deposit.

        I stated quite clearly ......

        Send a letter to your former tenants setting out the facts and that it is your intention to retain the deposit to cover the lost rent. If you have been able to relet the property before June 29th the amount of deposit you decide to retain could be adjusted accordingly

        It would then be open to the tenant to question whether or not the amount to be withheld was, in the circumstance, a fair retention.

        A landlord could well have had problems in determining the date on which the notice from the tenant became valid and the landlord was legally entitled to let the property to a new tenant. The 'mitigation' issue might not be straightforward.

        The key here of course is further input from T.M.
        Vic - wicked landlord
        Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
        Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

        Comment


          #5
          Deposit..Help...Just a THanks Guys.

          Hi
          Just a big thanks for getting back to me with the facts and your views.


          As i said i want to do it fairly and correctly but not lose out or cut myself short either.

          But your information is very helpfull.

          I think its best i get the ACTUAL dates ( of the tenancy) on here for you (and others) to see and then give me some feedback on that, if thats ok.

          I would be gratefull as ever.

          Many thanks Guys and Girls.

          T.M.

          Comment


            #6
            Deposit Issue...Pls help?!

            Hi again.
            Thanks for your help last time guys n girls.

            I have the specific dates below now,however..and i would love some help on this pls.


            The tenancy was agreed for 8 months with my 2 Tenants.
            From 04th Oct 05 - 30th June 06. They agreed and signed.

            I also gave a Section 21, well in advance, on 25th Feb 06, to reclaim for 30th June 06. I signed and they also signed in agreement.


            However, they notified me half way through May sometime that they would leave, and then left on 31st May 06!

            No replacement was found by them.

            I have found a new tenant, who has moved, in but only for couple months, ( start 29th May..to 1st Aug )

            These are the correct dates, above, of the Tenancy, Section 21 and its dates) and the date they (2 tenants) left.


            I may be wrong, and i appreciate your help, but i thought, since its a whole month early, do they they lose deposit, for breach of their agreement?
            Am i correct on this?

            Should/Could i meet them and explain and perhaps offer Just SOME of it back, if i wanted to?

            As i said before, i want to do it all correctly, they have been fair as i have been with them. But i dont want to cut myself short either! and as some of you may also be in the same boat!, im struggling with finding tenants at this time of year for both of my properties!!(aarghh...stress!!). Both properties only have 2 tenants in one house and 1 tenant in other!!!!(as rent amounts differ slightly).

            Anyway, i am grateful for all your comments, help, information and views.

            Thanks.TM

            Comment


              #7
              Originally posted by T.M.
              Hi again.
              Thanks for your help last time guys n girls.

              I have the specific dates below now,however..and i would love some help on this pls.


              The tenancy was agreed for 8 months with my 2 Tenants.
              From 04th Oct 05 - 30th June 06. They agreed and signed.

              This is not a tenancy for eight months. A tenancy for eight months would be from 04th October 2005 to 3rd June 2006. No wonder your tenants are confused! Was the rent payable weekly or monthly? On what dates were the rent due and how much? What was the last rent date?

              I also gave a Section 21, well in advance, on 25th Feb 06, to reclaim for 30th June 06. I signed and they also signed in agreement.

              It is possible there could be a dispute that this is not a tenancy of eight months but for a longer period. If the AST has information that is conflicting this could be grounds for disputing the AST. If the end of the fixed term is regarded as as 30th June then the expiry date of your section 21 Notice should be 29th June and not the 30th June. Your notice is therefore invalid for this reason.


              However, they notified me half way through May sometime that they would leave, and then left on 31st May 06!

              Count yourself lucky they did so. Count yourself lucky that your errors on the S21 Notice and confusions on the tenancy period did not involve you in expensive legal action

              No replacement was found by them.

              I have found a new tenant, who has moved, in but only for couple months, ( start 29th May..to 1st Aug )

              Guess other landlords would agree with me - it is just not worth the hassle of organising agreements, tenancy verification checks and inventories for a tenancy of just a couple of months. What is wrong with your property, its rent or its marketing that you are unable to get longer term tenants?

              These are the correct dates, above, of the Tenancy, Section 21 and its dates) and the date they (2 tenants) left.


              I may be wrong, and i appreciate your help, but i thought, since its a whole month early, do they they lose deposit, for breach of their agreement?
              Am i correct on this?

              Should/Could i meet them and explain and perhaps offer Just SOME of it back, if i wanted to?

              As i said before, i want to do it all correctly, they have been fair as i have been with them. But i dont want to cut myself short either! and as some of you may also be in the same boat!, im struggling with finding tenants at this time of year for both of my properties!!(aarghh...stress!!). Both properties only have 2 tenants in one house and 1 tenant in other!!!!(as rent amounts differ slightly).

              Negotiate a fair and reasonable solution and go back home an lick your wounds. Then start reading these forums and get yourself some books about the business of renting property.

              Anyway, i am grateful for all your comments, help, information and views.

              Pleased to try - sorry if the answers may be disappointing

              Thanks.TM
              .........................
              Vic - wicked landlord
              Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
              Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

              Comment


                #8
                Sorry if I have got it wrong, but you say that the tenant moved out on 31st May, but that the new tenant started on 29th May!!?? One of the dates must be wrong.
                Also, re your query on keeping the deposit if terms of the agreement are broken, the landlord can only claim for actual losses. If a new tenant moved in straight away, there were no losses in respect of rent.
                It does seem that you have mixed up the end date by saying 30th June instead of the 3rd June.
                If you have an AST agreement with your new tenant for 2 months, you should know that you can have such an agreement, but you cannot act against the tenant requiring possession before 6 months have elapsed. Maybe that is what you would like anyway!

                Comment


                  #9
                  Originally posted by Nora Kay
                  <snip>If you have an AST agreement with your new tenant for 2 months, you should know that you can have such an agreement, but you cannot act against the tenant requiring possession before 6 months have elapsed. Maybe that is what you would like anyway!
                  That's why most sensible landlords issue AST's for an six month fixed term - the date that a valid notice requiring possession can be issued is of prime importance.

                  I cannot see the point of such short tenancy agreements.
                  Vic - wicked landlord
                  Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
                  Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

                  Comment

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