UK Landlord Forum / Life

Hi, my tenant has given notice 5 months before the contract ends which is fine. However, after enquiring about the deposit and learning I didn't use a TDS to hold it, he is now seeking compensation by way of living rent free. I have repaid him the deposit but what safeguard do I now have that I will have my property returned in the condition it was let by letting him live rent free plus already paying back the deposit before vacating? Obvs Id like to negotiate a sensible outcome that suits us both but I'm being threatened with court action if not agreed to in 7 days!  We've had no issues in the past. Any advice would be appreciated.

Quote from: Loflo2008 on July 01, 2019, 12:48:57 PMWe've had no issues in the past.

Indeed... amazing how people can change when the balance of power tilts, isn't it?

So, all the surrounding stuff you hopefully mention is noise only... it's not relevant to your non-protection of the Deposit. Why didn't you do this?

There are / can be no extenuating circumstances regarding this breach of your obligations... it's black and white, you either protected the Deposit, or didn't. You didn't. It won't matter whether this is the best Tenant or the worst ever, likewise, whether you're the best Landlord or the worst ever (you're obviously erring towards this side of things). If you go to Court you'd end up with a penalty - understanding your minimum and maximum exposure is now key to your next steps... of which negotiation is going to be key. Don't bury your head in the sand. If you have repaid the Deposit you have no security Deposit to hold onto in case of the property being returned in a right old state... but the Deposit is really only a convenience for both parties... damage is still damage and it can be formally / legally chased if wanted. Best to not worry about that until it happens - the property may come back fine.

How much was the Deposit in £s? Are you a one property Landlord or not? How long have you been doing this? What amount is currently being demanded? I'd open up negotiations in good faith about now... or yesterday.

Complete oversight on my part, first time and didn't do enough research - lesson learned!  1 small property, 1 months rent compensation - after taking advantage of 15 mins free solicitors advice I can see I have nothing to play with and just have to accept my error - I just thought there may be some leeway as the tenant has surrendered early after committing for a year. Tbh I don't want this to be long and drawn out, there is another month to run on the tenancy. Deposit repaid and will now have to forego the last months rent and hope the property isn't damaged beyond wear and tear or left with a ton of rubbish to clear! Just have a feeling this has been done before to others..... but doesn't change the facts.

You have agreed to the tenancy ending early,and even if you did not,it would not make any difference to your problem.Why have you agreed to let him live rent free? If you hoped he would then forget the deposit offence,did you get him to sign something to that effect? What is the amount he is claiming from you? I would offer a bit more than 1x deposit,he would probably not get more by going to court.I am assuming that this is the only lease signed between you.

Quote from: Loflo2008 on July 01, 2019, 02:11:00 PMComplete oversight on my part, first time and didn't do enough research - lesson learned!  1 small property, 1 months rent compensation - after taking advantage of 15 mins free solicitors advice I can see I have nothing to play with...

This is not a bad attitude to take... it's to be considered an expensive training course. You'll not make the same mistake again.

allowing him to live rent free covers the cost of the compensation he is claiming for... the fact it was demanded before he was due to pay his monthly rental tells me he needs the money to move to his other property - yes agree it has left me feeling quite vulnerable that anything can happen to my property if he takes off earlier than our agreed date, chance I have to take.  I doubt he would offer a forwarding address but I do have his new letting agents details where I gave a reference before all this started!  Feel like I've been played a tad!  I've sent a settlement agreement letter for him to sign and return to end the matter.

And No, I most definitely will not make this mistake again, actually wonder whether it was worth taking a deposit at all....