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Unregistered deposit


ben.alongi

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Hi

I'm looking for some advice on a situation that has arisen recently.

I had a tenant occupy my property at the end of 2006. He recently left the property in April, however owed one months rent.

After speaking at length with the letting agent, it transpires that the tenant owed huge utility bills and thus the letting agent used the deposit to pay these bills. The contract I have with the agent quotes that all utility bills are the responsibility of the tenant. I have also found out that the deposit was not registered with a third party as the initial contract was signed late 2006 and never officially reviewed despite numerous requests to the agent to renew the contract after the first 12 months.

The property was in "New" condition when let at the end of 2006 as the house had been refurbished. At this point the house underwent an inventory, however when the new tenants moved in, in April, no new inventory was taken. There are numerous damages to the property which have all been communicated to the letting agent in writing. The agent is now writing letters to the tenant, but the tenant is not responding.

Not sure where I stand with this getting this one month rent back, as the agent has advised there is not enough deposit left to cover the oustanding rent and damages.

Any advice greatly appreciated.

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hi,

this sounds very familiar to me as i think it will most landlords i too have come across this problem and ended up out of pocket i dont think your agent should have used the deposit for utility bills in my unqualified opinion this is wrong.

There's always a small claims court if you want to take that route i personaly feel that your letting agent who presume did quartly checks on the property should have noticed some of the damage you talk about so they too are at fault although im sure they will sqirm there way out of that

the only other advice i can give is to take out a decent landlords policy in case it happens again (which it probaly will)let me know if you find a good one as i will need to do this myself once i've finnished repainting carpeting and changeing doors and ready to relet again

maybe someone on here could give you better advice my gut feeling is your only chance is a small claims court

mrglowe

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I would check your agreement with the agent. In my opinion the deposit should not be held in lieu of rent unless the departed tenant has agreed with you, or maybe with the agent, to this.

1) You should sue the agent for the deposit.

2) You say that utility bills are responsibility of tenant. In that case the agent should not have paid them and is his problem, not yours. In my experience utility companies will take their own action for outstanding tenants acounts but you may need to inform them when tenant left with final readings etc.

3) Once you have the deposit back from the agent you can negotiate with the tenant about the outstanding rent. Up to the point of departure the two moneys are not related.

And if you think the agent should have done this - get another agent or DIY next time!

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hi,

this sounds very familiar to me as i think it will most landlords i too have come across this problem and ended up out of pocket i dont think your agent should have used the deposit for utility bills in my unqualified opinion this is wrong.

There's always a small claims court if you want to take that route i personaly feel that your letting agent who presume did quartly checks on the property should have noticed some of the damage you talk about so they too are at fault although im sure they will sqirm there way out of that

the only other advice i can give is to take out a decent landlords policy in case it happens again (which it probaly will)let me know if you find a good one as i will need to do this myself once i've finnished repainting carpeting and changeing doors and ready to relet again

maybe someone on here could give you better advice my gut feeling is your only chance is a small claims court

mrglowe

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Thanks for the advice, really appreciate it.

This is the first time I've used an agent so feel really let down. I've arranged a face to face meeting with the Agent, to discuss this at length.

Will let you know about the Landlord's policy as this is something I think would be of great benefit for the future.

Ben

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Hi,

Just an add on to this - do check and make sure with visible proof that the agent paid these utility bills -sounds mighty suspicious to me. Then go for the letting agent with 'breach of contract'.

Mortitia

Thanks for the note, I hadn't thought about that so will add it to the list of issues I have.

Thanks to all for your help.

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