Bond deposit scheme

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  • Bond deposit scheme

    [LEFT]Hello,

    I am looking for a bit of advice.

    I live in Italy and have rented my furnished house in the UK to a single mum. I asked for a bond of £750.00 she asked if it was possible to pay the bond over 6 months and I agreed.


    To date she has paid £700.00 of the bond (she has been in the house 12 months)

    I was waiting until she paid all the bond before depositing it in a bond scheme.

    Last month she moved out without giving 2 months notice. And she has left the house in a mess ( broken dish washer, rooms painted red, new wall built in the cellar complete with electrical socket hanging from the ceiling)


    Question 1) Should I have deposited the money in the
    scheme bit by bit instead of hanging on to it. Even
    though
    there is money outstanding?

    I intend to pay her back her bond less the month that she didn't give notice and £30.00 rent arrears.

    Question 2) If she takes me to court is it too late to deposit the money or is it safer to pay her the full deposit and chalk it up to experience?


    many thanks

    Pete

  • #2
    There is case law which has concluded that late protection of deposit will not lead to the 3x amount being payable. Furthermore, there can be no charge for non-compliance when the tenancy has ended.

    Was the tenancy in the fixed term or had it run periodic? If it had run to a statutory periodic tenancy, the tenant is only liable to give you at least one months notice to end at the end of a period.

    I do not think you can protect the deposit after the tenancy has ended. I could be wrong!
    [I]The opinions I give are simply my opinions and interpretations of what I have learnt, in numerous years as a property professional, I would not rely upon them without consulting with a paid advisor and providing them with all the relevant facts[I]

    Comment


    • #3
      Hi Mr Johnny,
      Thanks for the fast reply.
      The tenancy was an initial 6 month with a 2 month notice. They didn't give any notice. I found out they had moved when a neighbour e mailed me.

      They paid the rent on the 1st August and moved out on the 1st September. The first I knew was when a neighbour e mailed me to say that they had done a moonlight flit. They also stole some weights from the cellar

      Comment


      • #4
        Was the 1st September the last day of the fixed term? In which case no notice is due.

        Did you give the tenant an English or Welsh address where they could serve documents upon you as required by sections 47 & 48 of the 1987 Landlord & Tenant Act?

        Comment


        • #5
          Originally posted by Snorkerz View Post
          Was the 1st September the last day of the fixed term? In which case no notice is due.

          Did you give the tenant an English or Welsh address where they could serve documents upon you as required by sections 47 & 48 of the 1987 Landlord & Tenant Act?
          No this was not the last day of a fixed term and yes they had an UK address where they could serve docs

          Comment


          • #6
            OK so T was in SPT, hence T only required to give 1 month notice, not 2 as detailed in AST for fixed term, which I assume ended on last day of month and rent due monthly?
            OK so considerable T damage? plus rent in lieu of Notice of 1 month, assuming no notice served on UK address, deposit avail £700. Deduct damages then unpaid rent and consider claiming underpaid amount.
            Can we assume OP did not employ agent on full management basis?
            Just hope T does not sue for full return of deposit due to non-protection.
            OP should have deducted deposit from first rents due and protected, leaving T with rent unpaid
            Personally I think OP has got away lightly.

            Comment


            • #7
              Hi all,
              Thanks for the replies.

              I didn't put the part bond in a scheme as I was waiting for the rest of the Bond to be paid ( I now realise that was wrong). I didn't think I could use her first month rent as part of her bond.

              Is it too late to put it in a scheme?

              Comment


              • #8
                Originally posted by mariner View Post
                OK so T was in SPT, hence T only required to give 1 month notice, not 2 as detailed in AST for fixed term, which I assume ended on last day of month and rent due monthly?
                OK so considerable T damage? plus rent in lieu of Notice of 1 month, assuming no notice served on UK address, deposit avail £700. Deduct damages then unpaid rent and consider claiming underpaid amount.
                Can we assume OP did not employ agent on full management basis?
                Just hope T does not sue for full return of deposit due to non-protection.
                OP should have deducted deposit from first rents due and protected, leaving T with rent unpaid
                Personally I think OP has got away lightly.
                Hi what is a SPT, The Tenant had a contact with an initial 6 months term and 2 months notice.

                Comment


                • #9
                  An SPT is a Statutory Periodic Tenancy, it arises if the Tenant remains in occupation once the fixed term has ended. Although there is some debate on the point, it is the better view that a clause requiring notice to be given to end the tenancy at the end of a fixed term is unenforceable for a number of reasons.

                  In any case, once the tenancy becomes an SPT a two months' notice clause is rendered void by statute and replaced (if the tenant pays monthly) with a requirement the tenant give one month's notice to end on the last date of a tenancy period.

                  You have indicated that your tenant left after twelve months in the property and that their tenancy agreement had a minimum term of six months. If this is correct it means that the tenant had an SPT and therefore should have given one month's notice. As you haven't protected the deposit when you should have deducting money for damages is fraught with potential court action to compel you to place the deposit in a scheme and abide by their adjudication. In order to bring a speedy end to the process I would advise continuing with your original course of action and returning the deposit after deducting one month's rent and £30 arrears.
                  Disclaimer:

                  The above represents my own opinion, derived from personal knowledge and should not be relied upon as definitive or accurate advice. It is offered free of charge and may contain errors or omissions or be an inaccurate opinion of the law. I accept no liability for any loss or damage suffered as a result of relying on the above.

                  Comment


                  • #10
                    Originally posted by bhaal View Post
                    An SPT is a Statutory Periodic Tenancy, it arises if the Tenant remains in occupation once the fixed term has ended. Although there is some debate on the point, it is the better view that a clause requiring notice to be given to end the tenancy at the end of a fixed term is unenforceable for a number of reasons.

                    In any case, once the tenancy becomes an SPT a two months' notice clause is rendered void by statute and replaced (if the tenant pays monthly) with a requirement the tenant give one month's notice to end on the last date of a tenancy period.

                    You have indicated that your tenant left after twelve months in the property and that their tenancy agreement had a minimum term of six months. If this is correct it means that the tenant had an SPT and therefore should have given one month's notice. As you haven't protected the deposit when you should have deducting money for damages is fraught with potential court action to compel you to place the deposit in a scheme and abide by their adjudication. In order to bring a speedy end to the process I would advise continuing with your original course of action and returning the deposit after deducting one month's rent and £30 arrears.
                    Thank you for your reply. I will send them the bond minus 1 month notice and 30.00 arrears. If they decided to challenge me I guess I can counter sue with the damage to the property. I am in the process of obtaining a quote from a builder to put the house back in order.

                    Comment

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