Can a landlord charge fees for late rent (thats been paid) from the deposit?

pixpax30

My landlord has decided to basically try and rip us off by claiming that we have broken and lost several items that never existed. He didn't get us to sign an itinerary, does that mean we are likely to win if we take it to mydeposits dispute resolution?


A more important question though is whether he can charge us for late rent, even though its been paid. I texted him on at the beginning of the last month of the tenancy, saying the rent would be 20 days late (the first time in 13 months). He agreed to this saying "your offer is noted, would have preferred no arrears". Then the money was paid on the date I said, despite him getting very irate and hassling us by text and phone in the weeks leading up to it.

So when the tenancy ended, he's sent us an outline of what he plans to give back, charging us for lots of things that never existed as well as deducting £360 for "arrears administration" from the deposit. Is this allowed? The tenancy agreement says that he can charge us "reasonable fees" for arrears, but ive read online that you can only deduct for cleaning, missing items etc from the deposit.

/england.shelter.org.uk/get_advice/paying_for_a_home/tenancy_deposits/what_deposits_cover#0


In any case Ive got a text from him agreeing to the late payment (well noting at least), the charges also don't seem fair. My half of the rent was £640, it was late for 20 days and pre advised.

Basically - is it legal for him to deduct arbitrary charges from the deposit for arrears that happened during the tenancy?

Jowo_2

It's an inventory, not an itinerary. Also known as a schedule of condition.

My understanding is that the absence of one does generally disadvantage the landlord during a dispute as they are unable to prove the change in condition of the property and its contents was due to the tenants actions.

Go through the dispute procedures. Shelter is an excellent site for info on how to handle deposit disputes.

pixpax30

Thanks - so does anyone know if it is legal to deduct money from the deposit if there were arrears during the tenancy?

The total amount of rent paid was around 16k over 13 months. £640 of that was late for 20 days. He deducted £360 from the deposit.

ILW

Was there anything in the rental agreement that mentioned late payment fees?

Fire_Fox

Don't text your landlord, write to or e-mail him. Text is not formal communication and is not proof in a court, don't see how you could use it for a deposit dispute either. Agree with ILW you should read your AST, the landlord *may* be able to claim what seen like excessive charges if he can demonstrate he incurred losses, e.g. late payment fees and extra interest on a secured loan or mortgage.

princeofpounds

Your deposit is protected right?

Don't worry. Write back, stating that no charge can legally be made for administration of arrears and that you dispute the amount. If he does not back down, go through the arbitration procedure. His spurious charge will be thrown out.

clutton_2

read your tenancy agreement and see what it says about late payment... most ASTs include a clause saying that late rent can be charged at 4-5% p.a. over Bank Base Rate (which is currently what 2%?) - so 20 days at 7%p.a. is going to be a tiny amount of late payment charge......

but he may also have included an administration charge caused by arrears in your AST - you need to read it...

pjread

base rate is still 0.5%. I think anything but interest should have an amount specified in advance, or agreed at the time. Arbitrary values likely won't fly with an arbitrator.

lizzielondon

clutton wrote: »

read your tenancy agreement and see what it says about late payment... most ASTs include a clause saying that late rent can be charged at 4-5% p.a. over Bank Base Rate (which is currently what 2%?) - so 20 days at 7%p.a. is going to be a tiny amount of late payment charge......

but he may also have included an administration charge caused by arrears in your AST - you need to read it...

i'm sure i once read that the OFT advises that interest should not be charged on late rent? don't know if i've imagined that though?

i think lls should be able to charge sensible interest though- £360 is a tad high :eek: