My Deposits warning.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    My Deposits warning.

    Something I found out too late so I thought I'd pass it on. Once a deposit is unprotected at the end of a tenancy that's not necessarily the end of the story.

    When my last tenant left we agreed in writing to just under £500 being retained from his deposit for the costs of cleaning he had failed to do,as stated in his contract, and I had paid for.
    I returned the balance of his deposit immediately and unprotected it with My Deposits.
    I was amazed to hear nearly 3 months later that he had raised a dispute and I had to return the money to My Deposits while the case was looked into. After taking the ex tenant to court I have been given judgement against him and can ask for my money back. I've spent God knows how long dealing with the paperwork and been £500 down for nearly 4 months now.......and still haven't got the money!

    #2
    Not familiar with My Deposits, but isn't the purpose of these type of organisations to have an arbitrator to avoid going to court?

    Are you going to get your court costs back?

    Comment


      #3
      Interesting. I use mydeposits and am half way through my 2nd dispute.

      The first one was handled within about 2 months start to finish. Property had a independent inventory with check in, regular quarterly management inspections and a comprehensive checkout. T had, at times, left a dog in the property and the dog has used the property as a toilet. The management inspections made frequent references to damp and wet towels going mouldy under windows etc. At the end, I retained the deposit and claimed additional sums for repairs.

      The tenant decided to take the matter to arbitration as he didn't see why he should pay for the carpets. I replaced the carpets and charged the tenant an adjusted rate based on the age of the old carpets.

      The slowest part of the whole process was waiting for the adjudicator to come back with their decision. In the end, the T was awarded £6 because the ADJ thought the cost of replacing the missing manuals was too high.

      I received the balance of the deposit back and pursued the Guarantor for the balance. We settled after 4 weeks without going to court.

      From your post, it would appear that you decided to use the court route, rather than be bound by adjudication. If you had a signed agreement from the T stating you could retain the amount for damages, arbitration would have been a pretty straightforward process.

      I'm waiting for arbitration on my second case. Hopefully a positive outcome in a few weeks, but that's another story.
      I offer my advice freely, but I am not an expert, solicitor or judge. It is simply my experience of being a landlord and what I have learnt along the way. I make no warranty for my opinion.

      Comment


        #4
        I would not have accepted that there was a dispute, nor would have I sent any money to MyDeposits.
        Instead I would have sent them copy of the written tenant's agreement of deductions, and proof that the rest of the deposit had been repaid.

        Comment


          #5
          Have you tried that approach? In my current dispute, the tenant did not pay the last months rent. In her NTQ, she tells me as much. I sent a rent demand and the rent statement reflecting the non-payment. She makes no mention of the outstanding rent in her submission to TDSL and TDSL would not accept me retaining the rent from the deposit. I had to send the whole amount to arbitration and will have to wait for an adjudicator to return it to me.
          I offer my advice freely, but I am not an expert, solicitor or judge. It is simply my experience of being a landlord and what I have learnt along the way. I make no warranty for my opinion.

          Comment


            #6
            No, I haven't encountered the situation.
            From OP's description there was no dispute as deductions had been agreed and proof of that was available. So I see no reason to acknowledge a dispute and send any money.
            One could quote MyDeposits's T&Cs in their reply:
            D2.3 If during the 10 Working Day period [see D2.1] the parties agree to the division of the whole or part of the Disputed Deposit Amount, then the Member must submit evidence to us of the Tenant’s written acceptance. We will contact the Tenant at the address provided by the Tenant when raising a Deposit Dispute.
            The deposit remains the property of the tenant and thus he must agree to deductions, or to settle the matter in arbitration. Failing that LL must sue.

            Comment


              #7
              Thanks for the clarification. My situation is slightly different and there was no agreement to deduct rent from the deposit.

              I would follow your advice where there was a written agreement re deductions. No point in tying up money if there is already agreement. I wonder how TDSL would view it though.
              I offer my advice freely, but I am not an expert, solicitor or judge. It is simply my experience of being a landlord and what I have learnt along the way. I make no warranty for my opinion.

              Comment


                #8
                I was advised to go the court route as My Deposits apparently often find in favour of the tenant, so didn't risk using their arbitration. Hope to get fees back.

                Comment


                  #9
                  Originally posted by jjlandlord View Post
                  I would not have accepted that there was a dispute, nor would have I sent any money to MyDeposits.
                  Instead I would have sent them copy of the written tenant's agreement of deductions, and proof that the rest of the deposit had been repaid.
                  With hindsite that's what I wish I'd done! I informed them I had the tenant's agreement in writing but was told I still had to go through the normal process.

                  Comment


                    #10
                    Isn't My Deposits an Ins based deposit scheme?
                    If T raised a dispute with MD ADR within MD timescale then OP could decline offer and force T into CC action. Ins based deposit schemes do not accept cash deposits, so why did OP pay disputed amount to MD #1
                    Yet in #8 OP was advised to go CC route so was disputed amount required to be paid into Court, not MD, before Judgement (normal)
                    A successful CC judgement should result in return of disputed deposit, but enforcement of Court fees & costs against T may be academic.

                    Comment


                      #11
                      I paid the disputed amount to MD because they told me I had to! I was not required to pay it to the court.
                      Hopefully MD will return the money soon but it has left me wondering if I should have handed it to them in the first place.

                      Comment


                        #12
                        With MyDeposits, if a dispute occurs my understanding is the landlord must Lodge dispute amount with scheme whether arbitration or court is used to settle.
                        As mention, IMO the key here is that there wasno dispute, T was just trying to go back on his agreement.

                        Comment


                          #13
                          Moral - Confirm any agreement in writing, or at least, send a confirmation of understanding of what was agreed. Get T receipt for any returned deposit.

                          Comment


                            #14
                            Originally posted by mariner View Post
                            Moral - Confirm any agreement in writing, or at least, send a confirmation of understanding of what was agreed. Get T receipt for any returned deposit.
                            Agreement was in writing but only by email.

                            Update:
                            Sent MD copy of judgement as requested.
                            Send MD copy of original claim as requested.

                            Now they inform me they have to contact the tenant to see if he is aware of the judgement!!

                            Another week gone!

                            Comment


                              #15
                              Originally posted by jjlandlord View Post
                              As mention, IMO the key here is that there wasno dispute, T was just trying to go back on his agreement.
                              I am finding this out to my cost.I have queried with My Deposits how the tenant was able to raise a dispute 2 months after the deposit was unprotected. and they tell me they can
                              " accept a dispute at their discretion depending on the reasons given by the tenant for raising a dispute."

                              Presumably they could also use their discretion to say no? But then they wouldn't be able to sit on my money for about 6 months......

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X