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Securing Deposit

Started by Landlady1977, October 01, 2014, 01:24:16 PM

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Landlady1977

Hey Peeps, me again.........need a little advice (again)....

Our tenants signed a contract, our management agency secured the deposit, the tenants were notified, all was good.  A year later, the tenants signed a further 12 month contract.....the deposit was still secured with MyDeposits, nothing changed, although our tenants were not issued with a new "notice of where their deposit was kept".  Rolling on 4 months later, MyDeposits changed their rules and new notices had to be sent out, which our management agency done straightaway.  After vacating, our tenants are sending us to court for not notifying them of the deposit............where do we stand? Has anyone gone through this?  Thanks guys :)

Riptide

Quote from: Landlady1977 on October 01, 2014, 01:24:16 PM
Rolling on 4 months later, MyDeposits changed their rules

They didn't change the rules, they don't have rules.  It was case law that decided this.  If taken to court you could be expected to pay them the deposit + 1-3 times the deposit as "damages"

Landlady1977

The deposit was handed back to them in March, at the end of their tenancy agreement.  Any idea where we would now stand then?  Thanks for your reply by the way :)

Hippogriff

It's still the same as what Riptide said. Returned or not, it doesn't matter.

RickC

Landlady1977 there are two issues here, the protection of the deposit and the informing them by providing the Prescribed Information.

You said at the beginning that "the tenants were notified, all was good."  if they were notified properly and the 2nd AST was substantially the same and the rules (terms) of the scheme that were served with the PI then the deposit remained protected and most importantly, they got it back.

All schemes DO have rules and/or terms, but you are governed by the Law. 

To take you to Court they would have to show that the deposit was not protected and that the PI was not provided, get copies of this from the agent immediately. 

Did they actually issue proceedings or have they sent you a "letter before action" either way I  would respond saying that it is a vexatious complaint and will be defended vehemently including your personal and legal costs.

A Judge will probably see it for what it is, they are more concerned about the deposit being protected and if you provided the PI and the terms say it was protected you will probably be fine.

What you did not say was whether they left at the end of the AST or did they go into a Statutory Periodic Tenancy?


Landlady1977

Hi RICKC, they left at the end of the second 12 month AST, good riddance to them lol