UK Landlord Forum / Life

Hello Everyone!! Before posting this...I have done some research on previous posts about similar matter...and it seems obvious that what a big mistake I have made (naive, over trusting people, novice landlord..whatever I tell myself..I have made a mistake by not taking out one)

Little bit of history....Tenant found on Gumtree about 4 years ago. It was given to a couple  (BF & GF). I mentioned that I need to take out insurance, and need to put your deposit in separate protection account with third party (at a time I did not know it was legal requirement, or what it was called). BF insisted, no we don't need anything like that, we trust you. Ok, I thanked them..and didn't  pursue the matter any further.

Fast forward June 2014.. BF is no longer living there (GF now has another BF, and has moved in with my consent on Oct 2013).

       1. She did not give me one month's notice, and only paid the rent for three weeks (contract stipulates one month's written notice required)
       2. Damaged the sofa, and bathroom (really badly). She would not accept liability and claimed it was always like that (despite presenting proof for the bathroom, professional report and invoice)
     
      3. Threw away the mattress, and claimed that she sought my permission and I said it was ok to ( no text, or email to support her case)
      4. Unauthorized use of separate shade for storage which is not part of the property (I only found out Dec 2013, when she couldn't give me the keys because she had started storing her BF's items)

    5. Damaged floor borders, dinning table chairs (minor repairs) because she had a cat, and cat has chewed on it or has took the nails out

   6.  She did not pay the full amount for service charge, and only came to light when she threatened me with court action, then I started looking at papers thoroughly (so I noticed that she's not paying the right amount)

    7. Never increase her rent, even reduced it one year because she was single.

   8. I helped her to move into my flat, and went with her to collect some TV (by car) she purchased

  9. When she left the property, She left her money box behind..I then arranged to meet again to return her money

Deposit was £750, I returned her £200 , only deducting costs for sofa (£100), and bathroom (£100).

She is taking court action, and we have a hearing date in next couple of months.

I need some advise on how best can i present my case. I accept that I shouldn't have listened to her BF, and should have protected myself.

Any advise on how to handle this case would be greatly appreciated.

I never had any intention to keep her money, and whatever I deducted is minimum. I have put a counterclaim, to make the matter worst can't find first copy of the contract or inventory...(it's in scattered email about what was provided with the flat).

Thanks in advance

I meant to say I returned £550..Only deducting £200 for sofa and bathroom

What Court action, exactly, is the ex-Tenant taking? Are you being sued for not protecting the deposit or just because the ex-Tenant thinks that your deductions are not justified?

Suing me for not taking out deposit

OK, so one question is how best to present your case. I hope you understand and accept that if this goes to Court you will lose... there is no if, it is already decided as you didn't protect the deposit and the Court only looks at that to decide if the Tenant will win their case... they will.

Are we on the same page there?

If so, what you need to hope for is that the Court only penalises you for 1x the deposit and then would have paid the Tenant £1,500... the original deposit, 1x... plus any costs.

However, the Court could award the Tenant up to 3x the deposit... in that scenario you would end up paying the Tenant £3,000, plus costs.

As you did not protect the deposit you have no chance of winning the case.

So, as always, I would advise that you see whether it's possible to try and settle before Court.

Is it?

What kind of Landlord are you, one property or many?

One property,

Property isn't even on my name, it's my husband's property and as he is out of country i was just managing affair.

Will  the court not look at evidence of damage, outstanding rent + service charge as part of the claim?

You failed to protect the deposit, that is what they'll look at. You'll be told to return the deposit in full and then be given a penalty between 1x and 3x the value of the deposit and you'll need to give that to the Tenant. Ignorance is not an excuse, nor is the Tenant saying "don't bother". As you're not a multi-property Landlord who has failed to protect a deposit multiple times, you would hope for 1x as a penalty.

If you want to sue for damage / outstanding rent, you may well be able to.

BTW... Tenants don't pay Service Charges, Landlords do. What are you referring to here?

In the contract we had agreed that as the rent was less than market value, we both would share service charge.

In our case, service charge was £84, and in the contract I included that the tenant will pay £42 towards service charge.

I will try to see if i can settle it outside the court..things have moved too far. She's paid hearing fees, I have also paid court fees....Let's see.

For me, its not just about the money, but principle as well. I have learned a very hard lesson, and learned that  you don't need to be nice to people (Specially commercial dealings)

"Naive" must be written on my forehead...because I got fooled by virtual kisses on her text messages/emails...and started treating her as my friend. Little did i know that she would act like this with me.

It sucks...,, My husband is no longer with us, so i am left to deal with this mess on my own, and if this penalty and extra expenditure coming out of my own pocket,, even when I did not benefit  a single penny from this property... I guess it's just a big learning lesson.

I would love to say, I am hopeful, but looking at previous posts....it seems like there is no  hope, everything seems to be on tenant's favor..no "ifs or buts in this case"....even when i offered to go to mediation prior to court case, and agreed to pay all the fees (as I find out mediation is not mandatory)...let's wait and watch!

Thank you for your advise so far!!

If you really are not the Landlord you are not liable. Only the Landlord is responsible for deposit protection. Not an Agent, like you may be. It's not exactly clear what the position is with your husband. Who is named as Landlord on the signed agreement?

First contract was on his name (but as I can't find the copy it's difficult to prove it..even though  I am searching for it like a crazy woman)....after that all the renewals it was my name as he was out of country.

You've failed to protect the deposit on more than one AST?

Can I ask... are you paying a specialist Solicitor to advise you? Would you consider it or would you prefer to just see what happens?

Yes, how unfortunate...never thought I would find myself that in this situation.

Absolutely, if you know anyone please recommend.

At the moment I have done all by myself.

The issue is that you could be liable for a penalty of 1x to 3x the value of the deposit (£750) each time you signed a new AST or let it go periodic (month-by-month). And, of course, even though there was only ever 1 deposit, there appears to be more than 1 contract so you are now a serial non-protector... I don't know how the Court would look upon this in practice.

Can I suggest that you seek some time with a property Solicitor so you can obtain advice? I have no-one to recommend, I'm just thinking it might help you get things clear in your mind and you'd have someone paid to be on your side and tell you really how bad this could be.

Can I also suggest an attempt at settling is pushed forward ASAP (if that's even possible). The Tenant may see value in "a bird in the hand" if you offered, say, £1,500... that's just a figure I'm mentioning, not a recommendation... their eyes might get £ signs in them and they might not proceed further (however, noted that you are already some way down the path).

I agree.

I would offer her £950.

The £200 you deducted, plus the full deposit back again.

This I can assure you, however galling is your best option.

You will look silly, and unprofessional and will get no sympathy from the "court"

Thank you both for  your advise so far.

My contract does not have any reference to deposit being paid, and I have an email confirming that as BF didn't want protection/insurance, then I said ok i  will keep £750 as any upcoming charges or rent arreas?

Does this count?

Afraid not... you took a deposit and didn't protect it. The Tenant wouldn't be taking you to Court if they figured it would get thrown-out. They're correct... and probably acting on some professional legal advice too. I suggest you might be better off halting your search for a get-out clause that doesn't exist.

There is no option for either Tenants or Landlords to opt out of deposit protection if a deposit is taken... it's mandatory.