deposit

[hboss]

I have had a tenant for six years on housing benefit. He moved out May 2 at my request. I am holding on to £230 of his £845 deposit due to damage to the flat - this includes badly stained carpet (have replaced it at cost of £930). Strong smell of smoke, filthy state and moth infestation (unhoovered wool carpet, new when he moved in). Cleaning has cost £180. But I have not registered the deposit with a landlord deposit protection scheme - am I liable because of this? I don't know if this is relevant but he hasn't paid water bills nor electricity. He was perpetually late in paying rent and at one time was £2000 in arrears before benefit was paid direct to me.

[Mortitia]

When precisely did the tenancy begin? You say he was six years on HB but was he a tenant before that?

The law to protect the deposit began 1st May 2007 ( I think).

Was the electric and water included in his tenancy or has he just not paid the utility companies?

More info needed but what is it you want to know? Is tenant considering action against you for non- protection of deposit?

Mortitia

[hboss]

Thanks very much for replying. I am withholding about 230 of his 845 deposit. he began his tenancy in July 2006. I don't know if he was on HB before that but I presume so.

No - he was liable for utilities etc - but has left big bills (though I'm not liable for these I think)

I am withholding deposit for: filthy flat / rubbish disposal / badly damaged carpets / smell of smoke / interest on long term arrears

I want to know if I can be fined for not using a landlord deposit protection scheme - he is threatening legal action though seen nothing concrete and I know he has large debts

is it worth me putting the remaining deposit that I still hold in a dps to cover my back if he comes after me?

When precisely did the tenancy begin? You say he was six years on HB but was he a tenant before that?

The law to protect the deposit began 1st May 2007 ( I think).

Was the electric and water included in his tenancy or has he just not paid the utility companies?

More info needed but what is it you want to know? Is tenant considering action against you for non- protection of deposit?

Mortitia

[Mortitia]

1. The utilities are not your responsibility so leave that out of it.

2. To protect yourself you should protect ALL the deposit now with the government run Deposit Protection Service (they are the only ones who will take it at this late stage) . You can do it online.

3. Inform the tenant where his deposit is and the ID number the DPS gives you.

4. Then if tenancy has ended start a dispute for the amount you want to take from his deposit.

5. Yes he could start legal action and you may be fined - so protect now.

Mortitia

PS Don't replace carpet with wool type. Use one of the new synthetics - cheaper,unattractive to insects and they clean up well.

[hboss]

Thanks very much - can I just confirm I should pay in all the deposit even if I've repaid some to him already? your advice is much appreciated

[LLAW96]

1. If you granted the tenancy before 6 April 07 the the deposit protection rules do not apply, I am assuming you have not granted a further tenancy post April 07 to the same tenant.

2. You cannot pay a deposit into the DPS retrospectively since the Localism Act came into effect in April 12.

[hboss]

hmmm - he was my tenant until May this year on a rolling contract since July 2006 (though never signed nor returned any further contracts).

the DPS is accepting my payment. Shouldn't they say if it's not acceptable? sorry for all the questions, advice much appreciated

1. If you granted the tenancy before 6 April 07 the the deposit protection rules do not apply, I am assuming you have not granted a further tenancy post April 07 to the same tenant.

2. You cannot pay a deposit into the DPS retrospectively since the Localism Act came into effect in April 12.

[Mortitia]

That confuses things a bit.

Either get tenant to sign a paper saying he accepts he did damage and this is the cost and he accepts this has come from his deposit. Has he signed a receipt for this money and how much was returned?

OR

If tenant takes legal advice from Shelter or similar you could be in trouble.

Of course the other simpler way is to refund all his deposit and accept that YOU should have inspected the property more often and protected the deposit. Ignorance is no defence unfortunately. Try and look beyond how cross you are at the state of the property and see how to get out of this with least hassle.

I'm sure you won't do this one again!

Mortitia

[Carryon Regardless]

Frequently Asked Questions - Deposit Protection Service

Clearly stating on the DPS site that the legislation isn't retrospective. LL's choice to protect deposits for AST's prior to April 07.

Keep it all and tell him to do what he wants.

There is possible confusion in that, if I read correctly, you provided documents for renewal of contract. If he could produce these it may cloud any defence you raise.

Although it does state "signed tenancies", your offer of renewals weren't I assume.

My view, you have kept back very little of the deposit, you could have kept all. You have demonstrated your reasonable approach.

Assuming you can demonstrate most of the deposit has been returned it's really not worth him pursuing the little that should be yours anyway.

We here previously had questions about the retrospective possibilities of deposits pre April 2007 due to the April 2012 changes. At least the DPS have cleared that up for us.

Edit: Wait for some claimant to state that SPT's are new tenancies so should be within the legislation.