UK Landlord Forum / Life

I have confirmation from the DPS that the letting agent I used has not transferred my tenant's deposit into the scheme.  Both my tenant and I have a copy of the signed tenancy agreement stating that is where the deposit is secured.  Has any landlord using your forum had this problem and if so, what action did they take to resolve it?

Hi,

We need more details.

When was the deposit paid by the tenant?

if it was recently, and you're talking about a relatively new tenant, it could just imply that's where the deposit will be secured. If not, then the agent failed to secure the deposit. Unfortunately, it is still your responsibility as the landlord to ensure it's secured.

Sorry to hear that.

The problem you have is that in law, it is your responsibility to do it, not your agent's.

How far into the tenancy are you ?

Quote from: Ukiesteve on November 04, 2014, 02:50:00 PMI have confirmation from the DPS that the letting agent I used has not transferred my tenant's deposit into the scheme.  Both my tenant and I have a copy of the signed tenancy agreement stating that is where the deposit is secured.  Has any landlord using your forum had this problem and if so, what action did they take to resolve it?

Sadly, this must read "I, as Landlord, have not secured the deposit in a scheme." because only the Landlord is truly responsible. If the outcome for this is not good, with you being sued - as an example - then you can try to take follow-on action against the Letting Agent if you are sure they were supposed to do it for you and their failure has cost you money. However, you cannot absolve yourself of the responsibility if the Tenant does decide to sue you. That particular issue would be between the Tenant and you alone and you are, ultimately, at fault.

Are you under threat of being sued or is the question more theoretical at the moment?

We are just going through the this at the moment.  Our agents secured the deposit, then when the tenants signed a further 12 month contract, they didn't issue a new set of paperwork to state where the deposit was..........its a pain in the arse!  We pay the agents, it should fall on their heads, not ours!  Good luck

Quote from: Landlady1977 on November 04, 2014, 08:20:32 PMWe pay the agents, it should fall on their heads, not ours!

Wishful thinking, I'm afraid. The Agent is you. Everything an Agent does (or does not do, I guess) is - effectively - in your name.

Thank you all for replying, really appreciate it.  I understand absolutely my responsibility in this; I've read Draycott v Hannells etc. This situation is theoretical at the moment.  A couple of months after my tenant moved in in January this year, I heard via the grapevine that this agent was not securing deposits  I set up my own deposit account and asked the agent to transfer both of my deposits, which he he said he would do, so I could end my business relationship with him.  One was transferred and since then I have been battling with him to get the second.  Finally I contacted the DPS and they confirmed the money is not there, although the agent has put in writing on the tenancy agreement that it is.  I have let the tenant know of the situation - I manage the property and we have a good relationship. So I guess I have two specific questions: how might I continue to put pressure on the agent to transfer the deposit to my account? (so I'm not breaking the law!) and what happens if he goes bankrupt and/or fails to pay the deposit back to my tenant when he moves out?  (I assume the answer to that second question is I pay my tenant and there's little possiblity of further redress with the agent, but your experience may tell me more.)

Yes potentially you can pursue the Agent. Even if they are a limited company and they go under, there is still a possible way. As this is a Hypothetical situation at the moment, just hold the thought.
If it does go badly wrong, get in contact again.

I wondered if you might be interested in what has subsequently happened with this issue.  I gave the letting agent a final deadline by which he was to put my tenant's deposit in my Deposit Protection account, or I would seek legal advice (as suggested to me by the DPS).  At the eleventh hour the money appeared.  I have reported the agent to Trading Standards, as I suspect I am not the only landlord whose deposits have not been protected within the set time period (or at all) by this agent.  My own liability hasn't altered but at least the money is safe now and I no longer have to have any dealings with the man!
Thank you again for your input.

Always nice for an update on a situation.

You now have, as you are aware the possibility of a claim being put in against you, for the failings of the agent.  I'm trying to work out the best way of ensuring that the agent is liable for this claim.  I'm thinking that you will only be able to make a claim from the agent, if and when the tenant makes a successful claim against you.  In my perverse and legally untrained mind I'm trying to think how you would best secure this.  The trouble is, you know the agent and company are in existence now, do you know if they would still be around in possibly 6 years time when a claim from the T can come in?  I'm thinking you should instigate the T to make a claim now and then when you have suffered damages through the negligence of the agent, you can then go after them to recover all the associated costs?  It's a risky strategy but not as financially damaging as the T making a claim in 5 years and the LA not being around.

This kind of thinking is frightening. I can see exactly where you're going... but I just cannot get my head around a Landlord saying to a Tenant "sue me, please, sue me"... hoping they will win and be awarded a penalty so that the Landlord can then go and sue the Letting Agent for said same.

This idea quite aptly describes the nonsense of some of the deposit regulations.

Quote from: Hippogriff on November 21, 2014, 09:28:53 AM
This kind of thinking is frightening. I can see exactly where you're going... but I just cannot get my head around a Landlord saying to a Tenant "sue me, please, sue me"... hoping they will win and be awarded a penalty so that the Landlord can then go and sue the Letting Agent for said same.

This idea quite aptly describes the nonsense of some of the deposit regulations.

Totally agree with you but I can't see any other way of getting the responsible party to be liable for the damages other than this.  As I said I'm not legally qualified in any way.  A word with someone who is may help.  And it is a pathetic situation regarding the deposit, proper money for old rope hanging over you for 6 years.