Inventory Check Out Fee - Can A Landlord deduct this from Deposit?

AWT19

Hi there,

I have a quick question to which I suspect I know the answer.

My landlord has just returned my deposit for my tenancy. It was unprotected and we have received it 1 month late.

The landlord has deducted a £120 fee for the final Inventory Check. This was listed in the contract. The wording from the contract is "To pay for the cost of the Landlord’s Inventory Clerk to check the Inventory and provide a Schedule of Condition at the termination of the Tenancy"

A week before he paid, we sent a nasty letter threatening legal action if he did not pay the full amount of the deposit by the end of the week, we would take him to court and chase the 3x fine. However he has deducted £120 amount.

Is he entitled to do this?

Thanks for your help!

poppysarah

I think it's wrong to charge this - but sadly it's in your contract so there's probably not much you can do unless you can get someone else to agree it's an unfair contract term.

sooz

Why is it wrong? (ignoring the unprotected deposit here)
The LL pays a clerk to produce an independent inventory. The tenant pays for the check out. Usually the check out cost is less.

The details of the clerk will be on the inventory, so the tenants can easily check what the cost is, & request the invoice.

AWT19

Looks like we have paid for both the check in and the check out.... so I guess this can be challenged under the unfair terms of the Consumer Contracts Regulations 1999.

"Unfair Terms
5. - (1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.

(2) A term shall always be regarded as not having been individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term."

So looks like I can challenge it based on these grounds?

Thanks for your help...

Robert_Sterling_3

This will give you a second chance to write a nasty letter. :eek:

tbs624

It's good news that you got most of your deposit back. However, only a court can decide whether a contract term is unfair - you have two choices:

1. accept the deduction

2. write a letter before action to the LL requesting the return of the balance of your deposit and then proceed to court if it is not forthcoming. If you intend to do this you need to let the LL know that you are not accepting the amount paid back to you as "full & final settlement".However, you may not win and you'll have court fees to pay.

Whether or not that clause would be held to be unfair, IMO the wrong in this is that the intention of the law was supposed to be that any LL who does not scheme-register a T's deposit within 14 days of receiving it should either refund that deposit in full or scheme register it immediately. As your tenancy has finished, he should be obliged to return it in full.

He hasn't done either of those things before a court action or court hearing , which is what he would have done to defeat an action for the 3x deposit penalty. Through the LL not registering the deposit you have effectively been deprived of the adjudication process, in which you could have challenged that deduction for both parts of the inventory process.

IMO the legislation should have had a two tier system of penalties with tougher ones reserved for those LLs who fail to register the deposit at any point during the term of the tenancy.

Talk to someone with LL&T experience at the CAB or a local law centre, or phone Shelter for their advice 0808 800 4444 but in the end only you can decide how much time & energy you have to continue to pursue the matter.

When you have wrapped everything up do write to your local MP, to the Housing Minister (with copies to the CAB & Shelter campaigns offices) and let them know of your personal experience because they need to know how the legislation is still failing to adequately protect Ts deposits.

AWT19

Thanks again tbs624. Very helpful indeed.

I figure the inventory deduction is more an attempt to show that an option to dispute has not been afforded to me, so not really concerned if I win that or not, more the point that I should be allowed to question amounts deducted from my deposit.

He also annoyed me by saying there were some damages in the inventory which he wasnt going to worry about, just to close the issue. The inventory was 100% spotless. Felt rather insulted even, although just scare tactics I suspect.

One question.. IMO?

AWT19

Also... given I have already written a letter before action, requestin the full deposit, and the 3x fine, can I now simple go straight to court, as he as only returned part of the deposit?

Thanks!

stick2000

What date did the AST start and when did you pay over the deposit?

AWT19

stick2000 wrote: »

What date did the AST start and when did you pay over the deposit?

We paid the deposit at the beginning of last year, when the AST began...

rogerdodger007

>> One question.. IMO?
IMO = In My Opinion.