UK Landlord Forum / Life

Hi all, my first tenant moved in around 4 years ago and I took a deposit of a months rent, she's since left and asked about the deposit which I said I'd keep as she owes me a months rent and both being of equal amount it's fair ! A month later the charity shelter have sent a letter saying I could have to pay over £5000 in compensation as it wasn't in a protected scheme. X3 of the deposit and X by 4 years having lived there.

I've always been a good landlord fixing any problems including a new boiler being installed. And I wasn't aware of any scheme as it was my first house and I was only quite young
I went out of my way to show shelter that she owed a month rent and since then they've used my bank statements for there own use and sent them back saying they want out of court settlements or they will take it to court. It just seams like a money grabbing loop hole to me.

Anyone have any experience with this matter ?
If I pay the deposit back can they still take me court ?
Can I go small claims court for the rent owed ?
What is likely happen in court ? Surely it's 50/50 and fair
Thanks in advance

Elliot

Quote from: Elly Ack on June 10, 2016, 02:52:42 PMI've always been a good landlord...

Sadly, this is not true. It's not true because you've failed to live up to your legal obligations as a Landlord. Who knows what else you didn't bother to do and blamed on ignorance? Did you do annual gas safety checks?

The deposit protection legislation has been in effect since 2007. Even the most naïve and inexperienced Landlord would have heard of this by now through doing the most cursory bit of research into their obligations. You appear not to have done this.

The result? You are bang to rights.

The Court must award in favour of the Tenant. The Court must award between 1x and 3x the deposit for each tenancy - are you saying you renewed it each year, or did it have an original fixed term of 1 year and then go periodic (monthly rolling) as that is going to be important for you?

Take note of the between 1x and 3x - it's not a definite 3x by any stretch of the imagination. However, if you really have had 4 tenancies of 1 year each then you are a repeat offender, sorry.

If it goes to Court it's not 50/50, no.. . but it is fair. After all, no-one has done anything wrong except you. The Court will not find in your favour. The only grey area is the amount of penalty you would receive.

If you give the deposit back you are still liable for the penalty, but you must give the deposit back anyway.

I suggest that you do that and also make a settlement offer.

Yes, you can claim for the rent owed - that is still a debt the ex-Tenant owes to you and is entirely separate from this matter.

I'm not blaming it on ignorance ! This is a forum not court I'd just say ! The gas safety was done every year, I was just turned 19 when I first rented it out and only took a deposit as someone said that's what you do ! I was working away in the forces
Can settlement be the deposit back if everyone agrees ? And can the tenant just take you back to court after settlement? Or do you need it in writing through a solicitor ?

If everyone agrees then, yes, but why would they? What's in it for them? Nothing. Their eyes will be glazing over at the prospects in front of them...