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Former tenant now wants bond back, advice please?

Hi

Our tenants moved out in April and unfortunately they didn't leave the house as they found it to say the least. They knew there would be deductions from their bond and that i needed to calculate the costs which they were hapoy with at the time. A couple of days later i received a couple of text messages from them to say they realised that the 'fair wear and tear' clause in their agreement was a get out clause for me not to return their deposit and went on to say 'anyway you have our money now, life isn't fair but what can you do'. I didn't respond and assumed they had more or less told me to keep the bond.
This evening however, my husband received a text from them to request a breakdown of costs as they want some of their bond back as they are considering seeking legal advice. Do we have any accountability here given what was previously said in their text (which i still have) and also considering that it is 2 months since they left? The house has been redecorated since and is now on the market.
My husband has replied by requesting details of their solicitor so that we can deal with them directly.
Any advice gratefully received
Gin
«134

Comments

  • Where was the deposit held?
  • We didn't put it in the scheme I'm afraid.
  • Cakeguts
    Cakeguts Posts: 7,627
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    We didn't put it in the scheme I'm afraid.

    It is illegal not to protect the deposit. You tenants are now entitled to take you to court to get the entire deposit back from you.
  • Tahlullah
    Tahlullah Posts: 1,086 Forumite
    There is no reason for not protecting the deposit, bar not receiving one. And as others have said, I would jut pay them back before they seek legal advice as a good solicitor who knows housing law will ensure they get the full redress as suggested above - plus their legal costs.
    Still striving to be mortgage free before I get to a point I can't enjoy it.

    Owed at the end of -
    02/19 - £78,400. 04/19 - £85,000. 05/19 - £83,300. 06/19 - £78,900.
    07/19 - £77,500. 08/19 - £76,000.
  • zagubov
    zagubov Posts: 17,873
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    You've no choice but to return it promptly and in full.

    Sorry but that's how it is, and you set it up to end this way.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
  • G_M
    G_M Posts: 51,977
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    edited 11 June 2017 at 11:22PM
    Cakeguts wrote: »
    It is illegal not to protect the deposit. You tenants are now entitled to take you to court to get the entire deposit back from you.
    Not so.

    The penalty for not protecting the deposit is up to 3 times the deposit (Housing Act 2004 (Section 212: tenancy deposit schemes) as amended).

    They can claim this, and given that
    a) you failed to protect it AND
    b) you failed to retun it
    the court would probobably award them the maximum penalty (3x).

    However the deposit itself is separate. They can alsoclaim this, and you would have to justify any deductions from it in the usual way.

    Frankly, you have a lot to learn about being a landlord, and tenancy law.

    Start by reading:

    * Deposits:
    payment, protection and return

    Best advice now is to refund the deposit to them, immediately, in full, and hope they don't still take you to court.

    If they do still take you to court for the failure to protect, the fact that you've returned the deposit will be a mitigating factor, and the court will likely award a lesser penalty of 1 times or 2 eimes the deposit. Note that 1 times is the minimum penalty, and the court must award a penalty of some level.

    I'd also advise you to

    a) stop texting, and write them a letter (apologising for the delay and enclosing the cheque)

    b) forget about asking for their solicitor. You want to minimise legal involvement, not encourage it. You want to make this potential problem go away!
  • 00ec25
    00ec25 Posts: 9,123
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    edited 11 June 2017 at 11:18PM
    it has been illegal NOT to protect a tenancy deposit in a registered protection scheme since 2007. It is amazing that you are that out of touch.

    there is no legal defence for not protecting a deposit
    the court may award the return of the full deposit, no deductions.
    the court will, in addition to that, also automatically award a penalty payment of between 1 - 3 times the value of the deposit.

    if you have incurred genuine costs associated with damage (not fair wear and tear) to the property, you are of course free to counter sue your ex tenant to claim for those costs. In that case the onus is on you to have the evidence to prove the damage. If you win then the tenant will be made to pay those damage costs from the deposit.

    also appreciate that your ex tenant has 6 years in which to start a case against you for failing to protect, so your lack of research on "current" changes in tenancy law may well haunt you for sometime to come yet.

    return the deposit in full and hope they don't find out how to still sue you even after getting the deposit back in full.
  • G_M
    G_M Posts: 51,977
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    00ec25 wrote: »
    .....
    the court will automatically award the return of the full deposit, no deductions.
    the court may, in addition to that, also award a penalty payment of between 1 - 3 times the value of the deposit.
    Sorry 00ec25, it's the other way round:

    the court[STRIKE] will[/STRIKE]may [STRIKE]automatically[/STRIKE] award the return of the full deposit, no deductions.
    the court [STRIKE]may[/STRIKE]must, in addition to that, also award a penalty payment of between 1 - 3 times the value of the deposit.
  • 00ec25
    00ec25 Posts: 9,123
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    G_M wrote: »
    Sorry 00ec25, it's the other way round:

    the court[STRIKE] will[/STRIKE]may [STRIKE]automatically[/STRIKE] award the return of the full deposit, no deductions.
    the court [STRIKE]may[/STRIKE]must, in addition to that, also award a penalty payment of between 1 - 3 times the value of the deposit.
    suitably edited... :o
  • Tahlullah
    Tahlullah Posts: 1,086 Forumite
    Also, based on what you have said, your ex tenants may have already sought legal advice and are aware of your failure to protect the deposit, and the statute of limitations.

    In that case, which right now is purely a guessing game for you, it may be worth you letting them take you to court. Otherwise, you could pay the full deposit back and in 6 months, they could still take you to court and you will still have to pay out a second time. Perhaps paying once might be better?

    I would suggest you go and seek legal advice yourself so that you have someone negotiating on your behalf with their solicitor. Where both parties are represented, you will reach an agreed binding settlement which you will only have to pay once, although it will cost you.
    Still striving to be mortgage free before I get to a point I can't enjoy it.

    Owed at the end of -
    02/19 - £78,400. 04/19 - £85,000. 05/19 - £83,300. 06/19 - £78,900.
    07/19 - £77,500. 08/19 - £76,000.
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