UK Landlord Forum / Life

Hi All,

I've just realised that I didn't correctly protect my tenants deposit when I received it back a year and half ago, I've now correctly used a protection scheme, but my tenant is being really difficult about it.

What is my current legal situation? Can they take me to court? Do I have to immediately pay it back to them?

I feel like such an idiot, I thought I had completed it correctly, but they are demanding proof of my old scheme which I now cannot provide. I have given them the new certificate and all the correct legal documents. Do they have any case against me?

Any advice and help would be gratefully received 

Many thanks

Erik in a related thread posted this.

http://www.gardencourtchambers.co.uk/imageUpload/File/Localismarticle5Apr12.pdf

I think it should provide you with the information you require.

For the full discussion see

https://www.landlordforumproject.co.uk/landlord-advice-help/protecting-tenants-deposit/


To save you the bother of reading, and to state you're up that creek with no means of propulsion.

"There is no route for a wholly
innocent landlord (for example, the landlord
who was in a coma from day one to day 30) to
avoid paying any compensation. Parliament
considers that this consequence is justified in
order to promote the protection scheme and
reduce rogue practice"


Sorry.

Arthur,

Your current legal situation... yes, they can take you to Court if they want to continue being really difficult about it. I don't believe you have to immediately pay it back to them, but you cannot issue them with a Section 21 before you have paid it back to them in full - so it's almost like you might as well do that.

They do have a case against you. As you've concluded yourself, you have failed to do this properly and this leaves you open to being sued for the original deposit plus 1x to 3x the original deposit.

Ignorance isn't a defence in cases like this, but don't fret too much on the 3x penalty - it is rather unlikely that a Court would award this against someone who wasn't an obvious rogue Landlord.

However, if it gets to Court and the Tenant wins (which they will, as we all agree you are at fault) then the Court can't award less than 1x the original deposit.

Is there room for negotiation directly with the Tenant?

It doesn't sound like there's a good relationship here, but most normal people - without some kind of vendetta - would see the merit in the phrase "a bird in the hand is worth two in the bush"... a Tenant looking for some quick compo. might accept a gesture from you, rather than want to follow through the Court process in the hope of getting more.

In all your dealings with the Tenants on this matter, keep it honest and transparent, try to resolve the situation amicably, try to show you are doing your best to avoid Court and keep records. If they agree to some kind of compromise, get them to sign something that ensures you are no longer open to future action on this matter.

And, if it gets so far that you think the Tenants have taken, or will take, something like this from you for a simple, hopefully genuine, mistake (assuming you are a good Landlord in all other respects) - I'd be getting shot of them ASAP.

I would add, though...

In all this, please do try to remember that you are at fault, not the Tenants.

Although it might end up being the case that they are doing distasteful things to try and get some money from you, they're not to blame for the overall situation.

Sorry.

Thank you for the advice. I really appreciate it. Up until this point there hasn't been any issues and we have had a good relationship.

I will take your suggestions and try and get this resolved ASAP.

Many thanks

Hi, my tenant 6 month tenancy comes to an end on Thursday.  She has lied and has persistently been a late payer with her rent since she moved in. I initially asked for £1000 and have only ever received half of it and was waiting for the other half which has never materialised. She is now owing 2 months (soon to be 3 months rent) and has told me by text message to use the 500. I want to serve her with a section 8 this Friday and then ultimately a section 21 notice.  What are my options now? Any help out of this mess greatly appreciated!!