Deposit - pre April 2007 offset against rent?

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  • Deposit - pre April 2007 offset against rent?

    The deposit was paid prior to April 2007. Now the rent is in over two months in arrears and have to move out. Can the LL hold back the deposit in lieu of unpaid rent? pls advise. By the way, the protection came into effect from when?

  • #2
    First of all are you in E&W. if yes.

    Its not when the deposit was taken, it was when the last AST(Contract) was created. So any AST created from 6th April 2007 must have the deposit protected.

    AST are for rents under 25,000 per year, so if your rent is greater than that or last AST was before this date your deposit doesn't need to be protected.

    As for what the deposit can be used for, is upto the contract, but normally says all liabilities arising from the tennancy, which could include rent.

    But it does seem fair, that if you owe two months rent, that the LL get it's from the deposit.

    Are you the T or LL?
    Disclaimer: What I say is either right or wrong. It may be advisable to check what I say with a solicitor. If he says I am right then I am right, unless he is wrong in which case I am wrong; but if he says I am wrong then I am wrong, unless he is wrong in which case I am right

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    • #3
      Contract was signed in Feb 07 - AST, now running as period, did not bother to renew or redo it. I am the unfortunate LL! Thanks for your reply. M.

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      • #4
        Originally posted by mari View Post
        Contract was signed in Feb 07 - AST, now running as period, did not bother to renew or redo it. I am the unfortunate LL! Thanks for your reply. M.
        Whether you may or may not claim rent arrears from the T's deposit will depend on what the tenancy agreement stipulates about it. Some agreements specifically prohibit this (to try to deter Ts from not paying the last month's rent and LL being left with no 'pot' of money to fall back on if there are repairs/cleaning to be done). If the agreement says you cannot claim rent from the deposit and you do, then your T could sue you (although it would be rather pointless in practice, as you would presumably counterclaim for rent owed).

        What does the contract say?
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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