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Rent arrears vs Deposit Protection

Started by Rollers, March 02, 2016, 08:07:36 PM

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Rollers

Hi all,

I'm a one-off amateur landlord who was naive enough not to protect my deposit in time.  My tenants have now moved out and have been refunded their deposit in full, with no deductions.  They are aware I didn't adhere to the deposit rules.

The main issue I have with them is a disagreement over the Assured Shorthold Tenancy Agreement and subsequently their last month's rent being in arrears.  The agreement states that notice should be given by them, 17th of the month preceeding the full month's notice (effectively 6 weeks' notice).  My tenants gave notice on 11th of January.  We agreed that in line with the contract, the move out date would be 29th Feb.  They then moved out on 11th February, with 3 days' notice to me via text.  I have not yet received any rent for February and am considering the small claims court route.

The tenants are willing to pay rent for the 11 days they were in the property.  My view is that they should owe for the whole month.  I managed to fill the property quickly, so am actually only interested in ensuring rent is paid until this date (up until 19th) and on principle am pushing for this.  They are making vague threats about reporting me for the non-protection of the deposit.

Any thoughts on 1) My rights with regards to enforcing the Tenancy Agreement rules about notice and 2) Whether they have a case with the Deposit Protection issue, since this has been repaid?

Many thanks....


Riptide

Push as hard as you can for your 11 (which they have agreed to pay) and the extra 8 days rent that you want as you see it as 'fair' watch them take you to court, 100% win their case and you have to pay the deposit (which you have) and 1-3X to them when the judge falls in their favor regarding the deposit protection.

Your naivety regarding "I've paid it back" is something that everyone who falls in the trap thinks about.  What is the point in having a law that says you have to protect it, but you think it's optional.  i.e you can keep it and give it back.  Kind of makes a mockery of the whole process.

Tenants have 6 years to make a claim and it sounds like they know their rights to a degree. 

Take the 11 days if it's on offer, poke the tiger with a stick if you want to exercise your 'principals'

Hippogriff

What an absolute idiot.

I actually hope your ex-Tenants commence a claim against you now. Awful thing to say but it really feels like you need to learn a few lessons. Go down the SCC route. Their vague threats will soon become very real for you. Will you lose? Yes, you will. Will you be sad? Yes, you will. Will you understand principles vs. pragmatism? Maybe.

Go for it.

Riptide

It seems more like greed than principals.

Hippogriff

I dunno. The OP appears to genuinely not understand that the ex-Tenant has them by the short-and-curlies, if they so desire.

I think the ex-Tenants have been very restrained in only "making vague threats" about non-protection of the deposit. I think you put it correctly - the OP has the choice - poke the bear and see what it does, or walk backwards... very slowly.

That said... even if the OP decides to walk backwards... very slowly, we all know the Tenant can make a claim for up to 6 years since the non-protection.

Not a cloud I'd want to be sitting under myself.

If I was this ex-Tenant and I had a good relationship with someone and no specific money troubles, I probably would not do anything... any of that changes (the Landlord starts being a dick or I come under money pressure or what-have-you) then I'd probably be straight after my ex-Landlord for some easy money. They deserve what they get, after all. Maybe the Landlord here was ignorant... but maybe not - maybe it was all planned like this.

heavykarma

What can you be thinking of,do you want to open up a whole world of pain for yourself? It sounds as if your tenants have behaved perfectly well.I would waive the 11 days,and count my lucky stars that they are not more savvy and wanting to shaft you. Also,you mention that it was a "One-off" letting,them go on to say it was quickly relet?  You are a landlord now,and there is no excuse for anyone not knowing the rules about deposits.I was irritated by the changes in the law at the time,but quickly came to appreciate the protection it also gave me.I was able to see the real state of the properties finances,instead of beginning to think all the accumulated deposits were mine!

kavanaghdavid

Yes, you have NO IDEA of the trouble you can be in by not protecting the deposit (I don't take deposits any more). Take the offer (or anything they suggest), smile and say thank you (ie try to leave on good terms); then read all the comments on ll's who haven't protected the deposits (including me) and thank your lucky stars . . . . . . . . etc

Martha

Quote from: kavanaghdavid on March 07, 2016, 03:17:09 AM
Yes, you have NO IDEA of the trouble you can be in by not protecting the deposit (I don't take deposits any more). Take the offer (or anything they suggest), smile and say thank you (ie try to leave on good terms); then read all the comments on ll's who haven't protected the deposits (including me) and thank your lucky stars . . . . . . . . etc

Intrested that you dont take deposits.  On one hand that would remove sooo much hassle.  But on the other, how do you mitigate against damage etc.
Do you just get them to pay x months upfront ?

Hippogriff

Can I ask whether you imply the hassle is from the initial taking and protection angle, or from the claiming angle?

I have not, yet, found it to be any serious hassle. However, not taking a deposit (possibly not having an alternative, just taking the risk) could actually be an enlightened approach. A deposit is only supposed to serve as a disincentive for a Tenant to cause damage because there should be an easy route for the Landlord to legitimately claim. If the route is actually not easy (or just as importantly, fair)... well, Landlords might as well just make Court claims to recover what they feel they're owed.

Lais de Almeida

Hi Rollers,

I would also try to leave in good terms as kavanaghdavid suggested.

If the tenants decide to sue because you didn't protect the deposit you can be fined up to 3 times the deposit value. Which likely means more than those 8/18 days of rent.

Also, even though you agreed on a moving date for the 29th of Feb, your tenants still gave you 1 month notice, which is all you could have asked for. In the end of the day it wasn't nice that they didn't keep to what you agreed but I don't think you will be able to pursuit it this time.

Make sure that with these new tenants you are protecting the deposit. Here a few tips on this: http://bit.ly/LF1_tenancy_deposit

If they got in on the 19th of last month you still have one week left to do this. If you just have a few properties your best option is a custodial scheme.

And next time your tenant gives you notice start straight away looking for people. This will ensure that you are not in a pickle with a void period again.

Good luck!

Lais from RentSquare
Rent made simple.
www.rentsquare.io

kavanaghdavid

Interested that you don't take deposits.  On one hand that would remove sooo much hassle.  But on the other, how do you mitigate against damage etc.
Do you just get them to pay x months upfront ?


I found that for good tenants a  deposit wasn't needed, and for bad ones it was no use. I suppose I should say here that almost all my tenants share one characteristic: they have no money! You (or maybe it's just me) soon learn about blood and stones, and reconcile yourself to the inevitable. When I first started, I used to argue with and trust the Council! Yes, I know, I can scarcely believe it myself now. But I can now lead a more peaceful life. It's the same with my tenants: I am happy if the door is still in place when they leave.

Was always impressed (though not enough to do it myself) with replacing deposit by non-refundable 'fees' (or maybe I just like the idea of legislation having the opposite result to that intended)