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tenant witholding rent to off set deposit


Whitey

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Please can i have some urgent advice. I have recently noticed that my tenant who is moving out in 6 weeks has only paid part of her rent. I have contacted her today by email and she has responded saying that she has decided to withhold her last 6 weeks rent in order to off set the deposit.

I am really dissappointed given that she has been a good tenant thus far. Any advice on what I should do? i.e. insist she pays the rent or agree and hope that the premises is in as good a condition as it was when she moved in.

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The $64000 dollar question is.....do you have a signed tenancy agreement in place? you don't mention it.

If you have, it will almost certainly state that your tenant may not withhold rent and use the deposit as an off-set.

Mel.

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Unfortunately this seems to be happening all too often.

I'd be doing an Inspection NOW rather than waiting till she checks out to see what needs doing etc and get that work done BEFORE they check out and get the money from them.

Definitely DO mention this when writing references for their new place if they've asked you for one.

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Hi

I think you should definitely be making it clear, in writing, that the full rent is due and that the tenant is not permitted to offset in this way. A written tenancy agreement covering this issue would be a great help, but some other proof that you took a deposit - such as a written receipt referring to a deposit - should be sufficient to prove its purpose.

Your tenancy agreement may also permit you to charge your tenant for reminder letters and other costs arising from her arrears. Provided these charges are reasonable - if they arent, then they are not enforceable - you could also make it clear that you intend to charge these amounts unless the rent is brought up to date immediately.

I would be interested to know if you do attempt to get her to pay and if your efforts actually work.

Preston

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Hi,

It is so disappointing when a tenant who has been fine throughout the tenancy does this. I agree to doing the inspection now and would mention to him/her that a landlord reference would not be forthcoming.

I would guess that the tenant is using her unpaid rent as a deposit on the next place.

I have had that put to me many times as a reason - not that I see the validity of it.

Mortitia

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Yes, I agree with all of the previous comments, I'd be doing an Inspection ASAP to check what may need doing and get that work done before they check out and get the money from them. As soon as you've done your inspection and itemised any reasonable deductions, then informed the tenant, the tenant might chill out abit.

I received the same treatment a few years back from a nightmare DSS tenant - which included abusive phone calls and threats of violence and I hadn't even said they wouldn't get their full deposit back. (I wont be taking on another DSS tenant in a hurry, but that's another story altogether!!).

To try to stop the problem of tenants holding back rent, I now take at least 6 weeks deposit at the start of the tenancy to try to stop it. This of course wont stop every tenant trying to hold you to ransom, but it may make the majority think twice. Taking two months deposit would be even better, but most prospective tenants may not agree to pay two months deposit if they earn enough and have good references. You could always discuss taking two months deposit, then gauge a reaction as the more deposit you can get the more the tables are turned in your favour and stops tenants taking liberties.

The tenant deposit scheme should in theory take away this agro and hopefully keep the peace between landlord and tenant.

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Thanks for the responses.

I do have an AST and there is a provision in there which states the rent is not to be off set against the deposit. I'm not sure how i can enforce this provision though given that she will be moving out in 4 weeks.

I will be contacting her tomorrow to tell her how disappointed I am and that i will be doing an early inspection. Fingers crossed that there are no problems found.

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  • 2 weeks later...

Hi, I'm having the same trouble and he was also a good tenant until a week ago. He is convinced his deposit is in lieu of October rent. I have told him I cannot access his deposit for rent this month and it is clearly stated in AST agreement that the deposit is not rent, but to no avail. Contacted CAB and they advised there is nothing really I can do. Chasing rent through Small Claims is not worthwile as you can only claim rent for period unoccupied and not worth the hassle, plus my tenant is a foreigner and there will be no means to chase him abroad for rent. CAB agreed the contract is worthless for tenants ending leases before due time or without notice. Rent arrears are also impossible to retrieve from foreign tenants or tenants who move abroad.

In future I will not be renting to foreigners (even though I am one!). The tenant deposit scheme does not make a difference.

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