UK Landlord Forum / Life

Good Evening

I did not protect my tenants deposit and they are now wanting to claim compensation. I am a newbie on here and I would be extremely grateful if anyone could point me in the right direction of any assistance/guidance please?

Many thanks

Are they still in the property?
Are they doing it themselves or using a no win no fee company?

No they have moved out of the property and they are using a no win no fee company. Thank you

Your minimum exposure is the Deposit (I presume that's already returned, in full or not?) + 1x the value of the Deposit, plus any costs that might arise (as the case will go against you if it lands in a Court).

Your maximum exposure is the Deposit (same presumption as above) + 3x the value of the Deposit, plus any costs.

It's now within your gift to either offer a settlement figure based on your hunch as to what your particular penalty might be... or do an ostrich and put your head in the sand and hope it goes away... it really might (it might not)... because you don't have an adequate defence for not doing what you were supposed to do, so there's no ducking-and-diving you can really do.

The penalty a Court might award could be affected by your circumstances and attitude / approach. Are you a multi-property Landlord who can't even claim ignorance made you do it, or are you just someone playing at the gig, maybe you inherited a property and can safely say you really had no clue... mea culpa? When did you find out about the lack of protection and did you do anything, at all, to try and correct it, or did you just laugh out loud like a maniacal super-villain and proclaim the law doesn't apply to you! Are you now planning on negotiating in good faith, regarding the claim, or are you going to make them go all the way... Courts don't seem to like open-and-shut cases going up in front of them - you know you're guilty (it's such a strong word for the offence, I think) so why didn't you take it on the chin?

Those kinds of variables. You can't predict for sure whether your penalty would be 1x or 3x - but, rest assured, the company chasing you will be trying to make you think it's a sure-fire 3x penalty heading your way. It isn't. But it could be... as it's your maximum exposure... plus, they'll likely be trying to add their fees etc..

What was the value of the Deposit?

What is the company asking you for?

We can negotiate this troubled water... but it will likely cost. I'm sure you don't want this hanging over your head coming to Christmas and the ex-Tenants could be tempted by a bird-in-the-hand just before Christmas... nudge-nudge-wink-wink.

Quote from: Angel13 on October 19, 2018, 07:08:22 AM
No they have moved out of the property and they are using a no win no fee company. Thank you

Prepare to return up to 3x the deposit plus the original deposit.

As I understand it you will lose this contest and have to pay at least 1x deposit plus deposit

Only the 1x - 3x penalty is mandatory. The court doesn't have to order the return of the original deposit if the tenancy has ended, if for example it's already been returned in full or less any legitimate deductions.

Settle, and settle early.

Thanks all