UK Landlord Forum / Life

Hello fellow landlords,

I'm in a right pickle. . . 

I, a first time landlord, (foolishly) didn't protect my tenant's deposit and now a solicitors firm (SBL Law) has sent me a letter of claim and a 'CPR Pt. 36 offer'.

The offer is that I pay a total of £10,200 + the tenant's initial deposit of £850 + the tenant's 'legal costs'. They have arrived at this figure based on 3 x the deposit for each tenancy term (so they are aiming high!).

The first AST was Dec '22 - Jun '23 (6 months). The second AST was Jun '23 - Dec '23 (6 months). The third AST was Dec '23 to Dec '24 (1 year). And then they were on a rolling contract until they left in Mar '25.

Upon receipt of the letter from SBL Law, I messaged the tenant in an attempt to appeal to their better nature and said that I was willing to pay back the full £850 deposit and that I'd rather settle between ourselves - but no reply and they are clearly ignoring me.

Now, I'm starting to question if the tenancy 'terms' are actually correct. My tenants signed the three AST contracts (as outlined above) but not a fourth time. Would their 'rolling' contract constitute a new 'AST' or just be a continuation of AST #3? The answer to this question will determine if the claim figure is correct, or if it should in fact be £850 x 3 x 3 NOT £850 x 3 x 4...

If you have read my post this far, thanks for staying with me!

Some general questions...

Has anyone had any experience with SBW Law? Can I/should I take them seriously?

Should I make them a counter offer of a lesser, more proportionate, amount (i.e - 1 x the deposit)?

If so, what template should I use? Or should I splash some cash for a solicitor to draft this for me?

What is the likelihood of my penalty being dropped to only 1 x the deposit for each tenancy term when it comes to court?

If I provide evidence (bank statements) that I did indeed (personally) protect my tenant's deposit, will the judge go easier on me?

Any advice / guidance greatly appreciated!

Quote from: Baconator19 on May 21, 2025, 12:28:25 PMHas anyone had any experience with SBW Law? Can I/should I take them seriously?

No experience but yes, you should take them seriously.

Quote from: Baconator19 on May 21, 2025, 12:28:25 PMShould I make them a counter offer of a lesser, more proportionate, amount (i.e - 1 x the deposit)?

Yes, make them an offer but, given 1x the deposit for four tenancies is the minimum a judge could award, that's unlikely to interest them. You'll want to pitch your offer at a level where there's a significant risk that the judge might award less if it goes to court. This is because if you've made them an offer and they take it all the way to court and don't get as much as you offered, they won't be able to recover their costs.

Quote from: Baconator19 on May 21, 2025, 12:28:25 PMIf so, what template should I use? Or should I splash some cash for a solicitor to draft this for me?

You'll want to make a Part 36 offer. You can do it yourself but you might find a solicitor handy.

Quote from: Baconator19 on May 21, 2025, 12:28:25 PMWhat is the likelihood of my penalty being dropped to only 1 x the deposit for each tenancy term when it comes to court?

Very unlikely to be 1x and very unlikely to be 3x. You didn't properly protect the deposit at all across a number of years but, on the other hand, you were an inexperienced landlord and we aren't aware of any other aggravating factors.

However, you want to avoid it going to court. Nobody in this process actually wants that. My gut feeling is £6k plus costs would make this go away but others may suggest starting lower. The trouble is all the backwards and forwards means the solicitors' costs go up.

Quote from: Baconator19 on May 21, 2025, 12:28:25 PMIf I provide evidence (bank statements) that I did indeed (personally) protect my tenant's deposit, will the judge go easier on me?

As above, you don't want it to go to court, however, that would probably help to keep you away from the 3x end.

Simon, you're a star Thanks so much for the prompt reply. I sincerely appreciate your advice.

I'm guessing I shouldn't make a profession of guilt in my Part 36 offer, I should simply state the amount I would be willing to pay and keep it minimal?

Perhaps I'll look for some templates online. I'm reluctant to pay a solicitor a large sum to simply draft a letter.

When you say all the backwards and forwards increases the solicitors fee, does that include me sending this offer and them responding to it, do you think?

I wonder if they will show the claimant (my ex-tenant) the offer...

QuoteHas anyone had any experience with SBW Law? Can I/should I take them seriously?

No experience, but yes.

QuoteShould I make them a counter offer of a lesser, more proportionate, amount (i.e - 1 x the deposit)?

The legal firm is likely to be less interested in the penalty amount than their legal fees. If this goes to court and they win, if they have taken the case on a conditional fees basis (no win no fee), they are entitled to a win bonus, which can be up to 100% of their fees. If you make them an offer, they are likely to use this as a trigger for an additional claim for their fees to date.

QuoteIf so, what template should I use? Or should I splash some cash for a solicitor to draft this for me?

You either know how to make a part 36 offer or you don't. If you don't, pay a solicitor. I do know how to do it and I'd be paying a solicitor now.

QuoteWhat is the likelihood of my penalty being dropped to only 1 x the deposit for each tenancy term when it comes to court

Virtually zero, unless you can show there was a very good reason for the failure - which is difficult for multiple failures - and it sounds as if you still have the deposit, which isn't helpful.

QuoteIf I provide evidence (bank statements) that I did indeed (personally) protect my tenant's deposit, will the judge go easier on me?

You either protected the deposit in line with the legislation or you didn't. If you did, you need to be able to provide sufficient evidence in court to persuade a judge that you did. Bank statements showing the money being transferred to a protecting scheme would be ideal.
There is documentation you are required to provide to the tenant as part of the protection process. Not providing the documentation in the correct format is a breach of the requirements in itself.

QuoteI'm guessing I shouldn't make a profession of guilt in my Part 36 offer, I should simply state the amount I would be willing to pay and keep it minimal?

A part 36 offer usually excludes an addmission of liability. There's no guilt in a civil claim.

QuotePerhaps I'll look for some templates online. I'm reluctant to pay a solicitor a large sum to simply draft a letter.

You are about to make a very costly error. This case can cost you many multiples of the claim made so far.

QuoteWhen you say all the backwards and forwards increases the solicitors fee, does that include me sending this offer and them responding to it, do you think?

Yes, and you have not seen a figure for their work so far.

QuoteI wonder if they will show the claimant (my ex-tenant) the offer...

They have to.

I am confused.  How can you show bank statements to prove you protected the deposit, when you clearly did not?  It also sounds as if you hung onto the deposit, or a large part of it.  Why would you do that when you knew you were in the wrong? On the face of it I don't blame the tenants for going after you. 

Quote from: heavykarma on May 21, 2025, 03:43:51 PMI am confused.  How can you show bank statements to prove you protected the deposit, when you clearly did not?  It also sounds as if you hung onto the deposit, or a large part of it.  Why would you do that when you knew you were in the wrong? On the face of it I don't blame the tenants for going after you. 

Correct, I did not protect it as per the government requirements but I can prove that the deposit has remained in my bank account the whole time (and not been spent, etc). Therefore, in a way, I have personally protected it.

Quote from: Baconator19 on May 21, 2025, 02:26:53 PMI'm guessing I shouldn't make a profession of guilt in my Part 36 offer, I should simply state the amount I would be willing to pay and keep it minimal?

On the facts stated, there's little doubt you're liable but, in any case, a Part 36 generally states that it is made "without prejudice, save as to costs", which means that the other party can't produce it in court as evidence that you're prepared to pay £x amount. It only comes into play after the level of liability has been decided.

Quote from: Baconator19 on May 21, 2025, 02:26:53 PMPerhaps I'll look for some templates online. I'm reluctant to pay a solicitor a large sum to simply draft a letter.

Not to be indelicate but ... how has the DIY approach to setting up the tenancies worked out for you, cost-wise?
Better to pay your solicitor a little than their solicitor a lot.

Quote from: Baconator19 on May 21, 2025, 02:26:53 PMWhen you say all the backwards and forwards increases the solicitors fee, does that include me sending this offer and them responding to it, do you think?

Yes, that's the devil of it. If you were dealing direct with your erstwhile tenant then you could have a bit of back-and-forth with relative impunity but, once the ambulance chasers are involved, you really want to land a hit on the first attempt, otherwise it's another few hours on the meter every time.

Quote from: Baconator19 on May 21, 2025, 02:26:53 PMI wonder if they will show the claimant (my ex-tenant) the offer...

Yes, they'll take your offer to the their client in any case, and it'll be down to their client to accept or decline, albeit they'll probably offer some advice on the matter. Guess who gets to pay for the writing of that letter ... and the stamps.

Quote from: Baconator19 on May 21, 2025, 04:18:23 PMCorrect, I did not protect it as per the government requirements but I can prove that the deposit has remained in my bank account the whole time (and not been spent, etc). Therefore, in a way, I have personally protected it.

No. You've "kept someone else's money". That's not remotely like the requirement to protect a deposit. Which has been the law for about two decades now.

And you've still got it, because your counter offer (incredibly) was to "pay [it] back". That's going to look terrible in court - your "offer" was to give the tenant their own money back. That's not an offer, that's an insult (as well as making concerns about an admission redundant).

I appreciate all of your replies so far. Thank you dearly.

I'm starting to wonder if it would be better to just pay their offer and 'let bygones be bygones'. . .

And if so, I wonder if I could "cut out" their solicitor from the deal and pay the sum directly to the tenant. This would at least save some cost, right?

I've always had a fighting spirit for things like this but perhaps I'm getting too long in the tooth.

Words of encouragement would be greatly appreciated. . . !

QuoteAnd you've still got it, because your counter offer (incredibly) was to "pay [it] back". That's going to look terrible in court - your "offer" was to give the tenant their own money back. That's not an offer, that's an insult (as well as making concerns about an admission redundant).

You're right. But I genuinely thought better of my tenants, I never thought they could be capable of such greed, hence why I offered their deposit back. What I didn't mention is that they caused mould and other damage to my property, and also left their trash on my front lawn for six weeks until they eventually hired a skip and cleared it. They truly do not deserve their deposit back, so I was reluctant to even offer them that!

By not protecting the deposit, you removed the tenants' (and your) ability to have your claim against the deposit being adjudicated by an independent third party, if they did not agree with your assessment that you had suffered a loss and that it was worth £850.

It's worth noting that the penalty mechanism for a deposit breach is there so that the tenants are incentivised to make claims to police landlords. There used to be no other mechanism to penalise non-compliant landlords, it's not something that a council can do for example.

I don't know for sure, but these claims schemes are very common, and your wish to remove the claims firm is unlikely to be possible. Tenants who want to make claims are not allowed to change their mind if the landlord looks likely to pay up. I don't see any way that you can win (although you could make a counter claim for the damage and trash), and the more you fight or delay, the more it's going to cost you. So I'd make a counter offer (ideally from a solicitor) and start saving up. You should be prepared for a second pass if you agree to settle for what they claim for, where the claims firm may try and add some additional "fees" to the settlement. Hopefully your solicitor will be able to head off that possibility.

These claims firms make their money by settling the maximum number of claims with one or two letters and getting close to what was asked for. If they do go to court, it's very unusual and they will usually hire a very expensive barrister to load the maximum cost into the settlement. Because any landlord is bound to lose unless they did actually protect the deposit and the tenant is lying or mistaken, the claims are quite simple.

Quote from: Baconator19 on May 21, 2025, 04:18:23 PMTherefore, in a way, I have personally protected it.

I am about to offer no help, but this made me guffaw. Not only because of how incorrect and inconsequential it is, but that is also betrays (in case anyone had any doubt) how wronged you feel in all this and the mental hoops you've jumped through to successfully convince yourself you are now trying to use to convince other readers here. We should avoid the temptation to do this... the facts are plain and simple... you didn't perform [at least] one of your obligations as a Landlord. The ex-Tenant is in no-way at fault here, nor are they greedy (rather they are conscientious in bringing a demonstrably poor Landlord to task - maybe the only language you'll truly understand is your bank balance being affected)... the power to protect the Deposit lay solely with you. What right do you even have to "think better" of them? The innate arrogance contained within that thought process astounds me.

I think I've said this before... I will never have a Deposit claim brought against me, because I protect Deposits. It's so simple. To decide not to do it is arrogant and dangerous. To not know that it needs doing is inept and apathetic. We all need shot of Landlords like you... I now find myself worrying what other obligations you thought were optional and best decided by you... do everyone a favour, pack up, sell up and move on to something else.

*UPDATE*

I drafted my own Calderbank letter to the ex-tenant's solicitors and offered to pay 2 X the deposit per term + initial deposit + solicitors fees.

So 2 x 850 x 4 = 6800 (+ 850) = 7650 + 500 (solicitors fees) = £8150 TOTAL

Whilst I'm glad that the problem went away and that I didn't follow the advice I got on here to pay for a solicitor, I do think I should've offered lower.

I think 1.5 x the deposit or even 1.75 x the deposit.

In conclusion, I have learnt two lessons. . .

1) The legislation surrounding unprotected deposits is, frankly, state-sponsored extortion.

2) In this godless country with malicious laws and cut-throat stratagems - where buying, selling, and renting out property only magnifies man's fallen nature - one must be very forgiving so as not to damn one's own soul to hell too!

Kyrie eleison!

One lesson you clearly have not learned is to stop thinking you are a superior being who does not have to follow the rules, like we other poor suckers.

As you have introduced a religious theme, how about that bit in the Sermon on the Mount. I mean the story of the moat and the beam in the eye?   

Quote from: heavykarma on June 24, 2025, 07:27:57 AMI mean the story of the moat and the beam in the eye?

The story of that kind of moat doesn't hold water... or rather, being a blooming big ditch, it can hold quite a lot.

The mote, on the other hand...   



But I agree with the sentiment of your message to the OP.

I really must start going to bible classes again.
It was hard to fit in the daily sessions and 3 times on Sunday,but they did make me a better person.x

Quote from: Baconator19 on June 23, 2025, 04:40:43 PMIn conclusion, I have learnt two lessons. . .

The way the update comes across (or the way I read it) is that you've agreed to pay out (not clear if it was only offered or offered and accepted) eight grand... but would still like to blame Others for the "right pickle" you've gotten yourself into, that being the case I'm not entirely sure any useful lessons have been learned. I mean, plenty of mediocre Landlords would never find themselves where you did, never mind good Landlords. I stand by my advice from before - sell-up, move on from the industry, I feel for the next sucker that comes your way. I find myself wondering why the lesson you've not learned is to simply protect Deposits... did that part evade you?

I would agree you should have started lower, but it seems like you caved here.

Still, eight grand is marginally better than ten grand. The ex-Tenants will likely have a nice holiday and raise a glass to you. This is a case of all's well that ends well. Everything was concluded fairly. It's pleasing to see. Thanks for the update, you seem quite pleased with yourself, which is nice, whereas I would be embarrassed.

The best thing is that the OP seems to think that "the problem went away". I'd guess that the claimants got about what they expected. Nothing "went away". Someone tried to be clever and lost, big time.

There's no repentance, so even the Lord's mercy is unlikely.

Quote from: Baconator19 on June 23, 2025, 04:40:43 PMSo 2 x 850 x 4 = 6800 (+ 850) = 7650 + 500 (solicitors fees) = £8150 TOTAL

Whilst I'm glad that the problem went away and that I didn't follow the advice I got on here to pay for a solicitor, I do think I should've offered lower.

I'd argue that's where the professional advice would have been worthwhile: it might cost you a grand but save you two. (And those two extra grand are going to your erstwhile tenants, for whom you don't exactly harbour warm and fuzzy feelings of affection.)

Eight grand does sound on the high side but if it gives you peace of mind, then it's a bargain, isn't it?