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Who's responsible for Tenants Deposit


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I'm looking for advice on my current issue.


Tenant signs a AST with Letting Agent.

Letting Agent fully manages he property and in Terms and Conditions states that they collect and handle the deposit - which is meant to out in one of the deposit protection schemes.

Some months go buy and all is fine until I fail to get paid for a months rent, which I eventually receive, this then happens again.. So I start to question the letting agent..

I then instruct the letting agent that i wish to leave and also ask where the tenants deposit is held.. I hear nothing, until I get a call to say that they (the letting agent) have gone into liquidation...

I believe that my tenants deposit was not proctected correctly and has also been lost as well. But who is responsible for paying the deposit back to the tenant, or do they just join the long line of creditors like myself for unpaid rent.

The way i see it, the tenant should make a claim against me and then i claim against the letting agent, but how does this actually work if the letting agent has gone into liquidation.

Am I going to end up having to pay out the tenant his deposit ?

What about if the tenant has no proof that he paid a deposit ?

All Advice Welcome



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Hi Shaun,

Starting with the tenant - did he get a reciept for his deposit? In fact he must have paid a deposit of some sort or it is unlikely the tenancy could have proceeded.

Even if you use an agent you the landlord are responsible for the deposit. So yes, you will have to pay tenant back any deposit owed and you could even be liable for prosescution for not protecting the deposit!

You say 'you believe' the deposit was protected - what led you to think this? A judge might ask this.

Seems you will have to join the line of creditors - but move on, collect rent yourself - you still have your property.


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Shaun........Just agreeing with Mortitia's comments.

I find it absolutely bl**dy ridiculous that a landlord can be held responsible for a LA's negligence of failing to protect the deposit and pocketing the tenants deposit. Like many Landlord /Tenant laws it is time the changes were made imo.

Please keep us all informed how you get on.


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