Unpaid Deposit into scheme and problem tenant...

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    Unpaid Deposit into scheme and problem tenant...

    Hi,
    As you can see I'm new to the forum and I was just wondering if I could get some advice on my situation. I'm a landlord with my friend due to neg eq and we've had a problem with our latest tenant.
    He was in the house for less than 2 weeks before he said he wanted to break his 6 month contract and move into a house which his dad was going to rent to him for £100 PCM cheaper. I said this was fine and as soon as I found to move in I was more than happy for him to surrender his lease. I told him as it was 2 weeks before Xmas I would struggle filling the property before and I would expect his rent until he moved out and then I would return part of his rent for the days he wasn't living there along with his deposit. This is where I made my first and only mistake, as it was less than 14 days I didn't pay his deposit into a scheme as I presumed he would be out within the month and it would save the paperwork etc.

    On the 22nd December he told me he wanted to move out on the first week of Jan and I could keep the deposit for January's rent. I told him by text that I expected his rent as agreed at the end of December and I would repay like I explained before. His rent never arrived. I managed to sort 3 viewings for NYE (day!) and informed him of this and asked if he could just make sure it was relatively tidy and warm in the house (it was neither of these things when I'd shown someone around earlier that week) at which point he informed me that he had moved out and and was now wanting his deposit back.

    I went to the house on NYE and the house was very untidy and there was several things broken. So I had to pay cleaners to tidy the mess (take out 4 weeks of rubbish to the tip and remove dog faeces) and pay for the repair work. I have photographic evidence of all this.

    I managed to get a nice family in from tomorrow (15th Jan) and the old tenant must have seen that I have taken the old notices down and asked for his deposit again. Due to the way he moved out, left a couple of broken things and owed me 21 days rent I sent him an email detailing costs and showed that he owed us money. But we would write that off.

    He knows his rights re the dep protection, and it's my mistake for not paying in the scheme and being too nice, and after a lot of threatening texts from him, and myself not wanting the stress of it, we agreed I'd pay him £225.

    Basically I just wanted some advice on here (one of my friends told me about the site) as to whether or not people would do the same or go to court? I'd be quite up for going to court as I'd want to defend my point. However, I've read up that a court would award him 3 months rent, and they would only award me my costs for the property being empty, plus any costs of which I'd have to prove by photographic evidence etc. In which case I think I'd lose out circa £1000 (the rent is £480, so pretty much 3 months less my costs) which I'd rather not, and I'm thinking well it's better to lose £225 than £1000. But if people have other experiences, thoughts etc I'd love to hear them. I do think that if I had followed the correct procedure and deposited in the scheme then I'd get his deposit hands down, and I'm upset with myself by thinking it was OK as it's an old school friend etc and not paying it in the scheme like I should have done. Like I said any thoughts would be greatly appreciated.

    #2
    Originally posted by mikeandgent View Post
    He knows his rights re the dep protection, and it's my mistake for not paying in the scheme and being too nice, and after a lot of threatening texts from him, and myself not wanting the stress of it, we agreed I'd pay him £225.

    Basically I just wanted some advice on here (one of my friends told me about the site) as to whether or not people would do the same or go to court? I'd be quite up for going to court as I'd want to defend my point. However, I've read up that a court would award him 3 months rent
    The T has no claim against you after the tenancy has ended. Whilst the current law does indeed state that a T may bring a claim for 3x the value of the deposit, the Court of Appeal has established that the T will only succeed in such a claim if 1) the tenancy is still in place, and 2) if the deposit remains unprotected, at the time of the court hearing. There is no penalty if a deposit has been protected, and the prescribed information provided to T, however late it is done.

    In short, there is no need to worry about T claiming against you. However, note that the law is soon to be amended (see http://www.landlordlawblog.co.uk/201...localism-bill/) so whilst you're 'safe' this time, you won't get off so easily if there's a next time.

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