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Is Tenancy Legal? Deposit protection scheme issue

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Author Topic: Is Tenancy Legal? Deposit protection scheme issue  (Read 110 times)
Newbie
Posts: 2

I like property

« on: October 03, 2021, 08:50:52 PM »

Hi All

Naive newbie landlord rookie errors incoming

I made a "sublease agreement" with a tenant who moved into a room in a house I own. I wasnt living there while she was.

I didnt register with a deposit protection scheme because there was no AST

I later put her deposit in a DPS anyway because I wanted to make sure I wasnt going to fall foul of any regs

She moved out after a couple of years and then I gave her deposit back by instructing the DPS

She has recently contacted solicitors and they are chasing me for 3 x the deposit in compensation for failing to protect the scheme up front

As there was no AST in the first place am I liable?

Thanks

Global Moderator
Hero Member
Posts: 1351

I like property

« Reply #1 on: October 03, 2021, 10:02:54 PM »


I don't get "sublease agreement".  If you own the house she was a tenant, She was not a lodger  if you were not living there.As I understand it, there was a de facto tenancy established so you should have protected the deposit.How long did you leave it,and did you give all the other documents  relating to safety and energy inspections ?
Newbie
Posts: 2

I like property

« Reply #2 on: October 04, 2021, 12:44:40 AM »

Yes ok. The sublease agreement was created because I was renting the property to my daughter and she was subletting rooms to individual tenants. However as it happened she wasn't living there when the tenant in question moved in so thats how it came about. Anyway yes all the other docs were correct and after a few months of the tenant living in the room I updated all the docs as I was renting other rooms to other tenants. It was when I put their deposits in a DPS that I realised it had never been done for this one so I did it then.
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Posts: 4297

Abuse Officer

« Reply #3 on: October 04, 2021, 07:46:48 AM »

If it wasn't a Lodger scenario then it was a Tenancy... regardless of no AST.

Remember it's "up to" 3x. Many Tenants think it's a surefire 3x, or they are led to believe this. I think you have a number of options... 1) try to convince them there's no case to answer (unlikely as it's got this far and some level of due diligence must have taken place), 2) negotiate something palatable to avoid Court, 3) try to convince a Court there's no case to answer - again, it feels unlikely as your own actions (protecting a Deposit that didn't need protecting, really?) betray your own true thoughts on the matter.
Global Moderator
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Posts: 1351

I like property

« Reply #4 on: October 04, 2021, 12:44:38 PM »

Your account is rather inconsistent. Awards of 3x deposit are not that common.She will automatically get 1x,so if you want to avoid court I would offer her half as much again.She could then have the cash in her account right away,rather than waiting many months.A sensible person would accept that.
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