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Can arrears be taken from tenants deposit?


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A tenant that has been at my property for over a year has provided me with 2 months notice. Although they have always paid on time up until this point, I have not received the final months rent. The deposit is held with a 3rd party, can I claim against the deposit for the unpaid rent?

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I think you can, but not until after departure. Until then the deposit is solely what it is, and not negotiable for rent due.

If tenant has given two month's notice, is the final month's rent actually due yet? (not clear)

If it is due, and not paid within say 2 weeks, you should write to the tenant pointing this out and whether they would like oustanding rent deducted from the deposit after departure, stating how much money will then be returned.

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  • 2 weeks later...
  • 1 month later...

We have experienced similar and are interested to read the responses to your problem.

Our tenant left giving us a week's notice with several months of tenancy left.He had bought a property and was moving in!

The final month's rent was not paid and on the advice of the Letting Agent letters were written over a period of weeks a/reminding him of his obligation to pay b/ telling him he could now use deposit to pay arrears should he so agree c/ asking him if agreed to his deposit being used.

To date no replies have been recieved so I am also interested to know if we can now insist the agents give us the deposit in lieu of rent. They said we had to wait three months which we have done (it's now 4) but seem to be reluctant to act.

We think we have been patient and have given the ex tenant all the time necessary to pay up.

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After 4 months I think you should be paid! If anything is likely to come back on this then the tenant will be chasing you and not the LA but at least you will have the money in the bank and could argue a very strong case of the tenant not giving the 1 months notice as required in his tenancy contract thus leaving you out of pocket and they ...in breach of contract.

Let us all know how you get on please.

Mel.

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  • 3 weeks later...
After 4 months I think you should be paid! If anything is likely to come back on this then the tenant will be chasing you and not the LA but at least you will have the money in the bank and could argue a very strong case of the tenant not giving the 1 months notice as required in his tenancy contract thus leaving you out of pocket and they ...in breach of contract.

Let us all know how you get on please.

Mel.

Thanks for the advice Mel,

went back to the agents and asked where they were up to with tenant. They said that he hadn't responded to any mail but we would still have to wait as 6 months had not passed (!!!?) I asked if they were sure on the time lag as it wasn't what they'd said previously - they said yes but the 6 months were nearly up and we could have the money shortly. They would tell ex-tenant what was happening by letter and apply for our deposit back from the Scheme. After a short wait this has now happened and we have had the deposit which has now paid their outstanding rent, so good outcome in the end.

BUT is there any definitive guide to how long Landlord's have to wait before getting deposits back?

Does it differ from agent to agent?

Thanks all

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