Can DPS deposit be used to pay rent arrears

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  • Can DPS deposit be used to pay rent arrears

    My T has left thank God, but I was told by my LA that I cannot ask DPS for the deposit to pay his rent arrears owed, only for cost of damages inflicted. Is that right? I was also told the DPS process can take quite a while as it amounts to a dispute procedure (yet another one!).

    Anyone out there with a similar story?

  • #2
    Agent is talking out of his bottom. You can certainly claim rent arrears from the deposit.

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    • #3
      That's not right - of course you can claim against the deposit for rent arrears - that's one of the main reasons for taking a deposit in the first place. Technically, your letting agreement should state that this is the case.

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      • #4
        Originally posted by VictorKilo3 View Post
        I was told by my LA that I cannot ask DPS for the deposit to pay his rent arrears owed, only for cost of damages inflicted.
        You can claim for unpaid rent *if* the contract says that unpaid rent may be set against the deposit. (Sometimes contracts don't allow it to avoid T not paying the last month's rent and telling LL he can deduct it from the deposit).

        So you need to read the contract.

        I was also told the DPS process can take quite a while as it amounts to a dispute procedure
        I've never had to use deposit scheme adjudication (ADR) but as claiming via the county court takes at least six months I imagine ADR is a lot faster.

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        • #5
          One of our tenants defaulted on his last rent, and we claimed it from DPS. Tenant has to agree for funds to be released, but I think they only have a certain time to respond, and no response is deemed as an agreement to the deductions.

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          • #6
            Thanks guys not that it matters because T has left with more than the deposit's worth of damage on top of rent arrears. The good thing is it is now a criminal case and the CID police had just contacted me. It seems they are keen to hunt T down, so perhaps that can still happen.

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