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I've messed up with securing deposit

Started by Newman123, July 14, 2020, 04:44:04 PM

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Newman123

received a soclitors letter last Friday acting on behalf of my tenant.

The claim is regarding the deposit not being secured in lne of the schemes.

I understand I have broke the law and that my tenenat is due compensation.

However the tenants solicitors are asking for £4800 and the deposit amount to be paid.

The deposit is 695 and the rent is also 695.

The tenant moved in on the 12th of January 2019 on a 6 month fixed term basis and is currently on a rolling contract.

I dont understand where they got that figure from as I was under the impression it is between 1 to 3 months rental value as compensation.

Simon Pambin

The rental value doesn't really come it to it. The penalty is 1-3 times the deposit per tenancy. In your case, you've got the six-month initial period as one tenancy, and then the rolling periodic tenancy as another. That would give a maximum of £695 x 2 x 3 = £4,170. Is it possible the deposit was actually £800, or that something else was paid at the same time that your tenants might have had reason to believe was part of the deposit?

Newman123

Thanks for the clarity but is that how everyone sees it. The way I see it in layman's terms is that it is still the same tenancy as nothing has changed it's just rolled over to periodic.  add the actual deposit to that 4170 gets you to their figure. I just rounded it to 4800.

So  the  maximum they can ask for is 4800. In their offer letter they have reduced it to 3600 plus their solicitors cost of 400 so a total of 4000 so it's close to the max, shall I try negotiate or wait for court proceedings and hope judge is more lenient with the compensation? Also is there any thing I can do to help my cause?


KTC

Probably asking you to pay the lawyer's cost as well. Make a reasonable counter offer, and settle as quickly as possible (to reduce cost).

Newman123

Just to add the tenant is two months behind on rent

Newman123

Yes KTC but why should o pay there fees. They also threaten with additional cost if it goes to court. I.e. there court costs representation

KTC

Because that's how court cost generally work, the loser pay the winner's legal cost.

Quote from: Newman123 on July 14, 2020, 06:31:10 PM
Just to add the tenant is two months behind on rent

Then make them an offer, with the amount offset against rent arrears, in full and final settlement for their claim. The minimum they'll get is 2x the £695 deposit, so pick and a number between that and the amount they're asking for.