Existence of deposit relevant to claim?

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    Existence of deposit relevant to claim?

    Hi,

    I have a tenant who now owes me several months rent. I have already served a section 21(4)(a) notice on her, and I am thinking of proceeding by submitting court form N5, and also at the same time N1 to claim for the arrears of rent. However, the deposit, which is currently held by the DPS, would in principle cover part of the monetary claim. Or to look at it another way around, if the court after considering my form n1 claim issues me a money order, will I then be precluded from requesting the transfer of the deposit to me by the DPS?

    Probably making this harder for myself than it has to be!

    All advice appreciated

    #2
    You need to bear in mind that the deposit is legally the T's money, unless he agrees to release it to you, or a scheme adjudicator or the court order it to be paid to you. You can't assume any entitlement to the money, meanwhile.

    If/when you start a court claim, the DPS will 'freeze' the deposit pending the outcome of the claim, and release it to whoever the court orders - N.B. the DPS T&C state that the judgment must specifically instruct the DPS, so assuming you win, you'll have to ask the judge nicely; sometimes, they refuse.

    Note that you can in fact claim unpaid rent in tandem with a s.21 possession claim, only it'll likely be less quick than usual because a court hearing will be necessary (often, with an accelerated claim, there's no court hearing).

    Note, too, that you could serve a s.8 notice on the grounds of the unpaid rent, and apply for possession on that basis, and you'd get an order for the rent alongside the possession order. Again, a hearing would be required.

    If you would like to check whether the s.21(4)(a) notice served was valid, please tell us:
    1. Date that the fixed term commenced? (dd/mm/yy)
    2. Length of term, and whether an end date is specified?
    3. Rent frequency, e.g. monthly/weekly?
    4. Date of service?
    5. Date of expiry and how the expiry date was expressed? e.g. did it say "after [dd/mm/yy]"?
    6. At the time of service, was the deposit protected and had the prescribed information been given to the T?

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