UK Landlord Forum / Life

This is my first post so please be kind.  My mother has been renting her property out for just over 4 years now.  She sadly passed away just over 3 months ago and I am the executor of her will.  I have applied for and am awaiting probate in order to sell her house.  I have advised the tenants that after much deliberation we have decided to sell the house and so have sadly had to give them 2 months notice.  They want to use their deposit to pay for the last months rent.  I have advised them that in accordance with the Assured Shorthold Tenancy Agreement that their deposit will be returned within 10 days of them vacating the property and it being in a satisfactory condition.  They have now asked me which Deposit Protection Scheme their deposit is held in as they have never received notification of this.  I have spend the last 6 hours looking into this and can now see that this is something that my 80 year old mother knew nothing of and therefore did not adhere to.  It is also news to me that this scheme existed and should have been used.  I have a horrible feeling that the tenants in my deceased mother's property may now try and use this against us and take us to court.  Does anyone have any helpful advice about this and do you think that as the original Landlord has passed away and probate is not yet in place I am able to avoid any possible cases being brought to me?  I want to be as transparent as possible in this and if I have to cancel the notice to quit the property and redo a new tenancy agreement  as new landlords and register the deposit with a DPS then I am quite happy to do so to remain within the law.  Thank you in advance of any advice

Just looking at your username, what country? England and Wales?

Good Morning!  Yes this is in England.

As you can read many times in these posts, you have no idea of the trouble in store through not having protected the deposit. Go back to tenants and agree to their proposition (or any other demand) and thank your lucky stars that (if?) you can see the problems through this column rather than at first hand.

HI Kavanaghdavid

Thank you for your advice, yes looking through many threads and information about DPS then we are really at serious risk of being taken to the cleaners for a genuine lack of knowledge.  I think that the tenants want the deposit back as they know that the place is in a mess......garden dug up, garage full of rubbish and they have removed and not replaced a fireplace.  If they use the deposit as the last months rent we have nothing to potentially withhold if they do not return everything to the state it was in when they first moved in.

The deposit is not protected - so you can't withhold anything anyway... unless you have completely gullible Tenants, of course. Doesn't sound like it.

You will need to return the deposit or possibly agree deductions... if you get that then you'll be lucky, but if you don't then you probably need to cave-in.

The notice you have given the Tenants is not valid due to the lack of deposit protection - if they are going to go without kicking-off, thank your lucky stars.

You, as Landlord now, will be liable for a claim for 1x to 3x the deposit amount for up to 6 years since the deposit was taken (which might be 4 years ago?). I do not see that this is avoidable, but if it ever got to Court you would hope that the outcome would be leniency - the Court cannot award 0x, but they can award 1x, that being the lowest end of the scale (that's in addition to the deposit of course).

Let us know what their [the Tenants] reaction is and we can try and guide you through this if anything kicks-off.

Every Landlord who didn't protect the deposit would initially claim it was ignorance / genuine lack of knowledge... unfortunately for you, this does not matter one iota. It's a black-and-white thing.

Firstly, condolences on your loss.

I think you'd do well to have a chat with your solicitors, as I suspect any claim for failure to protect the deposit would have to be made against your mother's estate. It's hard to see how you'll be able to serve a valid Section 21 without returning the deposit but, given your duty as executrix to act in the best interests of all the legatees, it would be advisable to run it past a professional first.

Hi Hippogriff!

Thank you for your quick and comprehensive response.  Reading it through is looks clear that we don't really have a leg to stand on should the tenants decide to pursue a claim through the court in respect of us not having protected their deposit.  The tenants have told us that they have secured a new property to rent so I don't believe they want to stay in our property anymore.  I suspect that they may not have the money to pay our rent as well as a deposit and first months rent on the new property.  We have inherited this situation and would like to resolve it quickly and fairly and perhaps naively believe the tenants will be reasonable too. 

I have a few more questions if either you or someone else reading this could advise on.

1.  The tenants have asked if the deposit can be used to settle the final months rent.  If we agree to this can they still  make a claim against us through the court for not having their deposit in DPS?  Or does the deposit no longer exist because they have used it to pay the rent.

2.  Assuming we do agree to this and upon the tenants vacating the property we find it in a mess, do we have any recourse to pursue any recompense from them. 

3.  Are we in a better position legally or morally if we insist that they pay the rent and agree to return the deposit at the end of their tenancy.  Again....what if the place is a mess?

4.  Is there any difference to when this is all resolved to its best conclusion for us.  That is does it make a difference if the tenants are still in the property under contract or if the contract has ended as they have left?

5.  Lastly!  The tenants have had a new boiler installed (free of charge to them) in our property.  Previous to that the heating and water system ran off a lovely gas fire and back boiler system.  They asked for permission to install the new boiler and replace the gas fire with a wood burner.  This was agreed by my mother at the time on condition that they installed a replacement fire with something of the same working order and condition or better (in this case they said they were going to put a wood burner in) This has in fact not been done.  The original fire has gone and in it's place is an empty fireplace opening.  I also believe that the operating system (gas pipes) have been cut off and decommissioned.  I have all of this in writing between the tenants and my mother.  Do you think we have any leverage here with this and can anything be done about it before or after the tenants leave?

Once again many thanks to you and anyone else reviewing this post.

Hi Scotslass.  Sorry to hear you have (literally) inherited a problem like this.

You are completely compromised legally, and if I was in your shoes I would make it as easy as possible for the tenants to get out and be able to forget about you and the tenancy.  I would not be locking horns with them over anything.  If they rope a solicitor in, page one will be investigating whether the deposit was done correctly. 

Also worth finding out when the six year period ends - for peace of mind.

Good luck.

Quote from: Scotslass on March 15, 2016, 02:14:56 PM1.  The tenants have asked if the deposit can be used to settle the final months rent.  If we agree to this can they still  make a claim against us through the court for not having their deposit in DPS?  Or does the deposit no longer exist because they have used it to pay the rent.

2.  Assuming we do agree to this and upon the tenants vacating the property we find it in a mess, do we have any recourse to pursue any recompense from them. 

3.  Are we in a better position legally or morally if we insist that they pay the rent and agree to return the deposit at the end of their tenancy.  Again....what if the place is a mess?

4.  Is there any difference to when this is all resolved to its best conclusion for us.  That is does it make a difference if the tenants are still in the property under contract or if the contract has ended as they have left?

5.  Lastly!  The tenants have had a new boiler installed (free of charge to them) in our property.  Previous to that the heating and water system ran off a lovely gas fire and back boiler system.  They asked for permission to install the new boiler and replace the gas fire with a wood burner.  This was agreed by my mother at the time on condition that they installed a replacement fire with something of the same working order and condition or better (in this case they said they were going to put a wood burner in) This has in fact not been done.  The original fire has gone and in it's place is an empty fireplace opening.  I also believe that the operating system (gas pipes) have been cut off and decommissioned.  I have all of this in writing between the tenants and my mother.  Do you think we have any leverage here with this and can anything be done about it before or after the tenants leave?

1 = yes, the claim is for non-protection of the deposit at the time it was supposed to be protected, not for anything that might happen after that time. If you allow the deposit money to be used to pay rent, or if you return it in full, it doesn't matter - it doesn't change the fact that a claim can be made for non-protection.

2 = Small Claims Court.

3 = I do not see that you are in a better position, no.

4 = No difference that I can see.

5 = Possible leverage, but you might well be poking the bear. You could possibly hint that you'd not follow-through on that if everything had a line drawn under it etc. but try to be subtle. Now, an aside, lovely back boilers are not lovely... they are inefficient deathtraps! The only good thing about them is that they're reliable... so bonus points to your Tenants for getting rid of that. I've just been through that process myself - £2,200 on a refurbishment - I would never let out a property with a back boiler, sorry.

Hopefully you can all resolve this like grown-ups... a bit of quid pro quo... no-one wants the uncertainty of a claim being made. I'd return the deposit or allow them to use it for rent, but get it all documented and hope no claim arises... if you feel one is going to then try to use the fact that you will claim for damage to the property and a failure to adhere to the agreement regarding the heating system to stop them in their tracks... best outcome here is that everyone just goes their separate ways.

Quote from: Simon Pambin on March 15, 2016, 01:59:42 PM
Firstly, condolences on your loss.

I think you'd do well to have a chat with your solicitors, as I suspect any claim for failure to protect the deposit would have to be made against your mother's estate. It's hard to see how you'll be able to serve a valid Section 21 without returning the deposit but, given your duty as executrix to act in the best interests of all the legatees, it would be advisable to run it past a professional first.

Thank you for your condolences and response Simon.  I do not believe that the tenants not leaving the property is an issue as they have found alternative rental accommodation and have the keys already!  I have already started to take some legal advice on this and am fully aware now of the consequences of not having a Deposit Scheme in place, albeit though lack of knowledge and an inherited situation.  At the end of the day I am am trying to consider the best course of action to the tenants request to use the deposit for the lasts months rental.  If we agree to this and thought that would be the end of it with regards to any possible court case being brought against us then that would be acceptable to agree to their request.  I suppose I am looking for a solution that is fair and legal but above all does not  allow the tenants to walk away from the whole situation without responsibility for ensuring that the property is in as good as an expected condition as when they moved in.

Kind regards!

Quote from: Scotslass on March 15, 2016, 03:03:22 PM...does not  allow the tenants to walk away from the whole situation without responsibility for ensuring that the property is in as good as an expected condition as when they moved in.

Obviously being cognisant of and accounting for just over 4 years of wear-and-tear.

How large is the deposit, and how does that compare to what you estimate needs doing to the house (allowing for four years' reasonable wear and tear)?

If you return the deposit, your tenants can still sue at a later date (that may be limited to six months after the grant of probate, rather than the full six years - that's definitely one for the solicitors though!) but, under the circumstances, I'd expect the damages award to be closer to 1x than 3x the deposit.

You should also consider the impact that a claim, or even the prospect of a claim, may have on the speed with which probate is granted. A house sitting around empty for months is no good to anyone, so you may be best off coming clean and offering, say, one and a bit times the deposit, in full and final settlement of any claim for the failure to protect it. That still wouldn't prevent you from pursuing the tenants for any reasonable costs relating to the state of the property when they move out.

Quote from: Martha on March 15, 2016, 02:32:32 PM
Hi Scotslass.  Sorry to hear you have (literally) inherited a problem like this.

You are completely compromised legally, and if I was in your shoes I would make it as easy as possible for the tenants to get out and be able to forget about you and the tenancy.  I would not be locking horns with them over anything.  If they rope a solicitor in, page one will be investigating whether the deposit was done correctly. 

Also worth finding out when the six year period ends - for peace of mind.

Good luck.

Hi Martha,

Thank you for your advice.  As totally upstanding and honest people this is really hard to swallow but I suspect that you and the other respondees are right and that it is best to walk away if possible.  The deposit was paid 4 years 7 months ago so a bit of time until the 6 year curfew is up.  I also suspect the tenants are aware of  the DPS scheme and assumed we were although they have never raised the subject of it until now.   This could of course all be a genuine situation with the tenants and they need the funds from the last months rental to pay their deposit on the new place.  It is possible that they will leave the house in good order too........or perhaps I am being naive here!  I have legal advice and legal cover in place but the legal cover will not cover a court case we are not going to win.  It will cover us if we go to court against them to reclaim any loses etc so I just need to make sure that we do not burn any bridges if this a course of action we find ourselves regretably in. 

Quote from: Hippogriff on March 15, 2016, 04:00:39 PM

Quote from: Scotslass on March 15, 2016, 03:03:22 PM...does not  allow the tenants to walk away from the whole situation without responsibility for ensuring that the property is in as good as an expected condition as when they moved in.

Obviously being cognisant of and accounting for just over 4 years of wear-and-tear.

Absolutely!  I would expect  wear and tear.  I am more concerned about the state of the garden if they have not kept it in good order, a gaping whole where a fire should be and looking at whether they leave a lot of rubbish and mess to clear up etc.  I had two local estate agents view the property and they said it was in such a mess they really couldn't assess it very well. 

Quote from: Simon Pambin on March 15, 2016, 04:01:27 PM
How large is the deposit, and how does that compare to what you estimate needs doing to the house (allowing for four years' reasonable wear and tear)?

If you return the deposit, your tenants can still sue at a later date (that may be limited to six months after the grant of probate, rather than the full six years - that's definitely one for the solicitors though!) but, under the circumstances, I'd expect the damages award to be closer to 1x than 3x the deposit.

You should also consider the impact that a claim, or even the prospect of a claim, may have on the speed with which probate is granted. A house sitting around empty for months is no good to anyone, so you may be best off coming clean and offering, say, one and a bit times the deposit, in full and final settlement of any claim for the failure to protect it. That still wouldn't prevent you from pursuing the tenants for any reasonable costs relating to the state of the property when they move out.

The deposit is for £550 which is equal to one month's rent. 

The tenants have not mentioned taking any action due to no DPS being in place, they have merely asked which account it is held in as they cannot trace it.....I suspect they are well aware that there is no DPS in place and want us to feel scared into agreeing to their terms to use the deposit to pay the rent.  I am happy to do that and accept that they still might take us to court but if they do or don't.......we still need to be in a position to pursue them for any damage to the property or costs incurred in restoring it to its original state, including a fire, if iti s over and above accepted wear and tear etc. 

There has been no conversation with the tenant informing them that there is no DPS in place and therefore  what do they want us to do and what do they expect? 

Thanks!

Bear in mind it's a difficult time for the tenants as well, with all the costs and uncertainty of moving to a new place. If you try to hold on to any part of the deposit, they will almost certainly sue you and get it back anyway, so you may as well repay it now.

If I were you, I'd actually repay it, and then take the last month's rent as normal (blaming red tape if need be!) so that there's no confusion over whether you've actually repaid it. Then, compile a proper end-of-tenancy report when the tenants are leaving, with plenty of photographs. If you can get the tenants to sign it, so much the better. Now you can work out the costs and, if you think it's worth it, bill the tenants. They'll threaten to sue, you'll haggle and you'll end up agreeing to knock, say, £750 off the bill (or write it off altogether if it's not too huge) in full and final settlement. You'll get it all in writing, chalk it up to experience and move on.

Quote from: Hippogriff on March 15, 2016, 02:48:57 PM

Quote from: Scotslass on March 15, 2016, 02:14:56 PM1.  The tenants have asked if the deposit can be used to settle the final months rent.  If we agree to this can they still  make a claim against us through the court for not having their deposit in DPS?  Or does the deposit no longer exist because they have used it to pay the rent.

2.  Assuming we do agree to this and upon the tenants vacating the property we find it in a mess, do we have any recourse to pursue any recompense from them. 

3.  Are we in a better position legally or morally if we insist that they pay the rent and agree to return the deposit at the end of their tenancy.  Again....what if the place is a mess?

4.  Is there any difference to when this is all resolved to its best conclusion for us.  That is does it make a difference if the tenants are still in the property under contract or if the contract has ended as they have left?

5.  Lastly!  The tenants have had a new boiler installed (free of charge to them) in our property.  Previous to that the heating and water system ran off a lovely gas fire and back boiler system.  They asked for permission to install the new boiler and replace the gas fire with a wood burner.  This was agreed by my mother at the time on condition that they installed a replacement fire with something of the same working order and condition or better (in this case they said they were going to put a wood burner in) This has in fact not been done.  The original fire has gone and in it's place is an empty fireplace opening.  I also believe that the operating system (gas pipes) have been cut off and decommissioned.  I have all of this in writing between the tenants and my mother.  Do you think we have any leverage here with this and can anything be done about it before or after the tenants leave?

1 = yes, the claim is for non-protection of the deposit at the time it was supposed to be protected, not for anything that might happen after that time. If you allow the deposit money to be used to pay rent, or if you return it in full, it doesn't matter - it doesn't change the fact that a claim can be made for non-protection.

2 = Small Claims Court.

3 = I do not see that you are in a better position, no.

4 = No difference that I can see.

5 = Possible leverage, but you might well be poking the bear. You could possibly hint that you'd not follow-through on that if everything had a line drawn under it etc. but try to be subtle. Now, an aside, lovely back boilers are not lovely... they are inefficient deathtraps! The only good thing about them is that they're reliable... so bonus points to your Tenants for getting rid of that. I've just been through that process myself - £2,200 on a refurbishment - I would never let out a property with a back boiler, sorry.

Hopefully you can all resolve this like grown-ups... a bit of quid pro quo... no-one wants the uncertainty of a claim being made. I'd return the deposit or allow them to use it for rent, but get it all documented and hope no claim arises... if you feel one is going to then try to use the fact that you will claim for damage to the property and a failure to adhere to the agreement regarding the heating system to stop them in their tracks... best outcome here is that everyone just goes their separate ways.

Thank you for another comprehensive and quick response.

I would like to resolve this but at the same time do not want to be taken for a ride at a later date if they are unscrupulous tenants who do this sort of thing for a living!   We would not attempt to withhold the deposit , as we cannot, and may well have no reason to do so. I also take on your comment about the fireplace.  However, as they promised in writing to replace it again with a working one,  then I feel it may present the opportunity for some leverage if they want to pursue a claim against the estate.  What I haven't asked is if they are allowed to cancel the rent for the last month?  Is that not in breach of the tenancy agreement?  Should we still request the rent as normal, return the deposit at the end of the tenancy period once the property has been inspected?

I think it is time to have an honest and open conversation with them and try to ascertain their intentions and what they want.  If it is as simple as it appears and they just need to use the deposit for the final months rent and they don't intend to pursue anything else then that would be acceptable.  However, from our point of view I need to make sure that  they agree in writing to this and that they will make sure that the property is presented back in an acceptable state.  I am sure they would not want us to pursue a case through the small claims court for non payment of rent and any costs incurred to replace a fully functioning fire as agreed. 

Thank you!

Quote from: Simon Pambin on March 15, 2016, 05:39:47 PM

Bear in mind it's a difficult time for the tenants as well, with all the costs and uncertainty of moving to a new place. If you try to hold on to any part of the deposit, they will almost certainly sue you and get it back anyway, so you may as well repay it now.

If I were you, I'd actually repay it, and then take the last month's rent as normal (blaming red tape if need be!) so that there's no confusion over whether you've actually repaid it. Then, compile a proper end-of-tenancy report when the tenants are leaving, with plenty of photographs. If you can get the tenants to sign it, so much the better. Now you can work out the costs and, if you think it's worth it, bill the tenants. They'll threaten to sue, you'll haggle and you'll end up agreeing to knock, say, £750 off the bill (or write it off altogether if it's not too huge) in full and final settlement. You'll get it all in writing, chalk it up to experience and move on.

Thank you again Simon some very wise words and good advice!

I think paying the deposit back to them and taking the last months rent would be best as it is as it should be and above board.   However, they pay the rent by direct debit and they tell me they have cancelled the direct debit so I have no way of getting the rent from them.  If i return the deposit, when does this have to be done by?  If I return the deposit and they do not pay the final months rent then I lose out twice. 

They don't do this sort of thing for a living ;-) they've been there 5 years.

Quote from: Hippogriff on March 15, 2016, 07:02:32 PM
They don't do this sort of thing for a living ;-) they've been there 5 years.

Yes I know, that was an uncalled for comment on my behalf!  I suppose I am just shocked that people may want to do this to other people.

Well, true... but look at it from another angle, if there wasn't a real problem with Landlords stealing (that's what it is) deposits then there would be no need for deposit protection legislation in the first place. If you can negotiate a path forward where everyone just calls it a day you'll be doing alright.

What a horrible situation,you really don't need this at such a time.The fact is that regardless of the rights and wrongs,you would probably be better off in all senses by severing l links with the tenants asap.If this means paying out for a boiler,paying for cleaning etc.that will still be preferable to some long-drawn -out conflict.You should only go into battle if you have a good chance of winning.In this instance your own case is heavily compromised by the deposit issue.Also,they obviously do not have much cash or own property,so even if you went to court they are men of straw,you would not actually get anything from them,or maybe a small monthly payment that could drag on for years.You however would have to cough up the deposit,maybe x3,in full.
Most landlords will have had tenants who leave one with no choice but to take final rent from the deposit-they just cancel the direct debit and take off.And  neglected gardens,rubbish,botched DIY-par for the course.Of course, many people who sell houses left by elderly parents,tenants notwithstanding, will have to spend on modernising and cleaning before they can sell the place.I know too well how angry tenants like this can make you,just take comfort that karma never loses an address.
 

I can't imagine your frustration at this moment!

But what everyone said here is very true - by trying to fight this you might see yourself paying 3 times the deposit. And by wanting to sell the property you will have enough expenses at the moment to also have to sign this money off.

From your description your tenants don't seem reckless. They have been there for quite a long time, they tried to invest in the property themselves with your mother's permission, so I am sure they considered this their home. They can be scared that you won't give their deposit back as they always dealt with your mother and suddenly there are so many changes to take in.

Have you tried to visit the property and understand what is the condition of the property now? It might be that we are speculating that the property will be left in bad shape - but this might not be the case.

If I was in your shoes, I would arrange with the tenants to visit the property (you need to let them know 24 hours before) and understand how much you will have to invest to put things right before selling it. Take even someone who can give you a quote perhaps. And over chat you can try and understand what the tenants intend to put right themselves before moving.

I wouldn't fight to give the deposit in full because realistically you won't be able to deduct from it - especially as they learn that it wasn't protected. Although to have a proof of the money transferring from your bank account to theirs seems sensible so that no one can argue that you didn't give it back. If you decide to let your tenants use this money as their last payment try to get this agreement in writing so that you cover your back as much as you can, given the situation.

Have a think and do your research to see if it is really worth pursuing a case at the Small Claims Court. Try to find similar cases and what was the settlement to understand your chances. You might find that the money and head-space you will spend won't pay off.

Very good luck with this.

Lais from RentSquare
rent made simple
www.rentsquare.io

Quote from: heavykarma on March 17, 2016, 10:27:22 AM
What a horrible situation,you really don't need this at such a time.The fact is that regardless of the rights and wrongs,you would probably be better off in all senses by severing l links with the tenants asap.If this means paying out for a boiler,paying for cleaning etc.that will still be preferable to some long-drawn -out conflict.You should only go into battle if you have a good chance of winning.In this instance your own case is heavily compromised by the deposit issue.Also,they obviously do not have much cash or own property,so even if you went to court they are men of straw,you would not actually get anything from them,or maybe a small monthly payment that could drag on for years.You however would have to cough up the deposit,maybe x3,in full.
Most landlords will have had tenants who leave one with no choice but to take final rent from the deposit-they just cancel the direct debit and take off.And  neglected gardens,rubbish,botched DIY-par for the course.Of course, many people who sell houses left by elderly parents,tenants notwithstanding, will have to spend on modernising and cleaning before they can sell the place.I know too well how angry tenants like this can make you,just take comfort that karma never loses an address.

Hi and thanks for you response.  Yes you are right, I really don't need this at the moment, especially since I am still  reeling from my lovely and sorely missed mother's unexpected death!

In all fairness ( and I think I may be being a bit naive here as I tend to think everyone is nice and honest) the tenants have been great.  I don't even know if they intend to act on the fact that their deposit was unknowingly not protected by my then 80 year old mum.  They have been in the property for over 4 years with no rent increase and I had no intention of increasing their rent as money is tight.  I looked into buying the property (I have 3 brothers who have equal shares)and letting the tenants remain there until next year but after much deliberation decided that it was not practical to take on another mortgage at this time.  I regretted having to give them notice (which was not properly done t I have since discovered) and although disappointed at having to leave they have found somewhere else and are moving in next month.  If they changed there mind and stayed I would except that as I did not inform them properly. 

As I said, I don't know if they are going to pursue any claim against me.  They merely stated that they wanted to use the deposit for the final months rent.  If I thought that would be the end of it and the leave the property in a clean and tidy (and I am not going to be picky about how clean and tidy) state then I would agree and shake on it.  If however I agree to this they can still take me to court for the deposit and a potential 3x that on top.  So I lose the deposit, lose the last months rent, have a potential mess to clear up in and around the house and then have to face a possible fine up to £2200.....a bitter pill to swallow for becoming a reluctant landlord.

They are writing to me tonight to inform me of what they want and what their intentions are......so we will see.

Quote from: Lais de Almeida on March 17, 2016, 04:02:08 PM
I can't imagine your frustration at this moment!

But what everyone said here is very true - by trying to fight this you might see yourself paying 3 times the deposit. And by wanting to sell the property you will have enough expenses at the moment to also have to sign this money off.

From your description your tenants don't seem reckless. They have been there for quite a long time, they tried to invest in the property themselves with your mother's permission, so I am sure they considered this their home. They can be scared that you won't give their deposit back as they always dealt with your mother and suddenly there are so many changes to take in.

Have you tried to visit the property and understand what is the condition of the property now? It might be that we are speculating that the property will be left in bad shape - but this might not be the case.


If I was in your shoes, I would arrange with the tenants to visit the property (you need to let them know 24 hours before) and understand how much you will have to invest to put things right before selling it. Take even someone who can give you a quote perhaps. And over chat you can try and understand what the tenants intend to put right themselves before moving.

I wouldn't fight to give the deposit in full because realistically you won't be able to deduct from it - especially as they learn that it wasn't protected. Although to have a proof of the money transferring from your bank account to theirs seems sensible so that no one can argue that you didn't give it back. If you decide to let your tenants use this money as their last payment try to get this agreement in writing so that you cover your back as much as you can, given the situation.

Have a think and do your research to see if it is really worth pursuing a case at the Small Claims Court. Try to find similar cases and what was the settlement to understand your chances. You might find that the money and head-space you will spend won't pay off.

Very good luck with this.

Lais from RentSquare
rent made simple
www.rentsquare.io

Thank you for your response and some useful thoughts.

I have taken legal advice on this situation and I fully understand the situation regards the lack of protection scheme.  It has been suggested that we may be lucky with a sympathetic hearing as we were not the original Landlord that put this in place and have only inherited the situation.  So if it was only the deposit and 1x that it would be palatable.  I am however worried that if I allow the deposit to be used for the final months rent and then they lodge a case against me then I will lose so much more.

The legal adviser says that I should not allow the deposit to be used in final payment for the rent owing otherwise I will not bengn a position to bring a counter claim for non payment of rent or anything else.  I have also spoken to one of the 3 deposit services who say the deposit can still be put into a scheme which would mean it cannot be used to settle the last months. Although i know this won't prevent a claim being made.    I really don't want to put the tenants through any of this and hope sense and understanding of my mums lack of knowledge and the good relationship they had with her and us will prevail.

There is a good chance of that. People are generally OK. Your issue may be how badly they feel they've been treated. People push back when they feel they've been trodden upon. Not saying they have - it's feelings. Remember that their losing their home of quite a few years. I know you will.