Have my letting agent mis advised me?

[Berkshire123]

Hi all,

My letting agent set up a DPS scheme for me for my tenants deposit.

She also paid 2 months rent as security but that was not included with the deposit amount for which the scheme was set up.

My tenant is now making a claim against me for the full monies not being protected. Ie the deposit plus the rent security.

Should I be seeking a claim against my agent?

Thanks in advance.

[jpkeates]

When she paid 2 month's rent as "security", what was it "security" against?

[StuartH]

You're on dodgy ground. What does the tenancy agreement say about the advance rent payment? How is it distinguished from the deposit? What can the deposit be used for?

[Berkshire123]

Thank you for your replies.

She did not have a job at the time so paid rent in case we were left with rent arrears.

I didn't question the deposit amount to be protected as I felt I was being advised by a professional.

[Berkshire123]

To add the monies were noted separately on the contract under 'deposit' and 'rent payment'.

From what I've read she has a very good case but do I against the letting agent?

[jpkeates]

The idea of taking additional rent in advance is that the tenant then doesnt pay again until that rent has gone.
If you take additional rent to hold in case rent isn't paid, that's a deposit and has to be protected.
That's not a very good case, that's a slam dunk - hopefully you gave it all back.

It depends what the letting agent told you and in what capacity.
If they told you it was OK and didn't need protecting, you may have a case.
If they didn't say anything, you wrote the tenancy agreement and you didn't tell them what to do with the money, probably not.

[Berkshire123]

The letting agent set up the dps and gave me a certificate stating the deposit only amount.

[jpkeates]

In which case, they may have been negligent.
What did they do with the rent paid as security?