Deposit protection issues

Scollk

Hi, I am having some issues with the deposit on my flat, and a previous tenant. If anyone has any experience in the issue and can help, I would greatly appreciate it.

I did not pay a deposit when entering the flat last September, and did not sign a contract until November. I had taken over the room from the previous tenant, and his name renamed on the contract til November.

After we signed, the landlord told us that instead of me giving them a deposit, I was to send the £600 to the previous tenant (as a pay back of his deposit.) The idea then was for me to get my deposit back from the next tenant after me.

I'm leaving the flat this month, and as of yet, I've not paid him anything. I've not been sure what to do, and have kept putting him off. I don't want to give him the money, as that leaves me without any protection, seeing as the next person in the flat will be a complete stranger, and the cycle will continue!

There is money which is being held under the scheme for our flat, but the names on it are for previous tenants. The landlord tells us for some reason, it cannot be changed.

I feel bad that this guy hasn't got his money, but I don't want to be out £600 either.

Anyone else had to deal with this before? The landlords are clearly in the wrong here, and they shouldn't be making me give the deposit in this way!

G_M

Your only legal relationship is with your landlord.

You should pay your rent to him. You should give your deposit to him (and receive a receipt for it!). By law he should place it in a scheme, in your name. When you leave, your LL should return your deposit.

Any other arrangement is fraught with risk.

(I am assuming you are a sole tenant - if you are in a joint tenancy then usually one of you is the 'lead tenant' to whome the deposit is returned). At one point you say 'we' - what does this mean?

Scollk

Joint tenancy - I'm with three others. One of which has been there for two years, and his name is on the scheme, as lead tenant.

G_M

Scollk wrote: »

Joint tenancy - I'm with three others. One of which has been there for two years, and his name is on the scheme, as lead tenant.

So all 4 of your names are on the tenancy agreement?
And this agreement started when? For what fixed term (or has it expired and become periodic?)
Since you are leaving, I assume you gave notice to end this tenancy? What notice was given?
Is it the intention of the remaining 3 (+ your replacement) and the LL to create a new tenancy when you leave?

Or do I suspect that actually your name is not on the agreement at all - just the lead tenant's (and perhaps 3 others who are long gone), and that in effect you are subletting (possibly in breach of the contract) from the lead tenant? !!

If so, your 'contract' (albeit possibly illegal) is with the lead tenant who should therefore be responsible for taking, registering and returning your deposit!

Fang_3

DO NOT PAY HIM. It is the landlord's responsibility to repay the money to the tenant, not yours. It's likely that your landlord can't afford to pay the last tenant back and so is trying to get you to do it so he doesn't have to. And then you'll have no proof of paying the deposit and won't have any comeback. You're leaving soon so just ignore it.

tbs624

Scollk wrote: »

There is money which is being held under the scheme for our flat, but the names on it are for previous tenants. The landlord tells us for some reason, it cannot be changed.

The LL would be charged a fee for doing so and clearly does not want to have to pay this. The fee however is tax deductible. Not having your name on the deposit certificate leaves you with little protection.

Scollk

G_M wrote: »

Or do I suspect that actually your name is not on the agreement at all - just the lead tenant's (and perhaps 3 others who are long gone), and that in effect you are subletting (possibly in breach of the contract) from the lead tenant? !!

If so, your 'contract' (albeit possibly illegal) is with the lead tenant who should therefore be responsible for taking, registering and returning your deposit!

The names on the deposit protection scheme are for the three previous tenants (plus my flatmate). I believe I must have subletted from the old guy in my room for about 2 months, until the agent got round to giving us all separate contracts. When we got new contracts, the deposits were not returned to the previous tenants. Instead, the agent told them to collect it from us.

The contract was for six months, ending on the 1st August. I gave my notice last month for it to end. However, it is a joint contract so we are jointly and severally liable for the rent. 2 of my flatmates want to stay, so we are in the process of finding someone to take over the room now.


Another issue is that my flatmate is a good friend of both myself and the previous tenant who wants the money. So obviously tensions are rising. My other two flatmates have given money over.

The agents really are a joke here - they took forever to get a contract in order, and it wasn't until jan that we got an inventory.

Thanks for the help here guys. The previous tenants (my other flatmate is also being hassled) have been into the agents last month, where they've told them that we should be sending them the deposit. so she's been saying it's our problem now.

Scollk

Just received an email from the agent - they are now saying I can pay them the £600, and they will pay it over to the previous tenant.
I'm still not happy about this, as my name won't be on the deposit protection scheme.

They are saying that the deposit always needs to amount to £2400, so they cannot return any portion of it, as we remain in occupation. Obviously, what needs to happen is that they return the whole deposit to the lead tenant, and he gives back the money, and then we repopulate the deposit with our own money, with our names on it. This is what should have happened last year, when we all signed the new tenancy agreement.

G_M

Scollk wrote: »

The names on the deposit protection scheme are for the three previous tenants (plus my flatmate).
Then this deposit is nothing to do with you. As advised, only give your deposit to the LL and insist it is placed in a scheme
I believe I must have subletted from the old guy in my room for about 2 months, You have an old guy in your room with you? hope you get on well! until the agent got round to giving us all separate contracts.
I'm confused. You said earlier you have a joint tenancy. Now you say you all have separate contracts. Which is it?
When we got new contracts, the deposits were not returned to the previous tenants. Instead, the agent told them to collect it from us.
And being sensible, you refused.
The contract was for six months, ending on the 1st August. I gave my notice last month for it to end.
If the fixed term ends on 1st August you cannot leave before then. However you do not have to give any notice - on 1st august you can just leave (though it is polite to let your ll know your intentions)
However, it is a joint contract so we are jointly and severally liable for the rent.
See above! Do you have 'separate contracts' or a joint contract!
2 of my flatmates want to stay, so we are in the process of finding someone to take over the room now.
If you have a joint contract, and have given notice, then it will end. It is not your job to find a new tenant - that is the LL's job!
If the remaining tenants wish to start a new tenancy, they can certainly find a new 'prospective' tenant to offer to the LL, who may or may not grant a new joint tenancy - either way this is NOT your problem.

Another issue is that my flatmate is a good friend of both myself and the previous tenant who wants the money. So obviously tensions are rising. My other two flatmates have given money over.
Only you can decide what your friendship is worth. From a legal perspective you have been given clear advice. If you choose to hand over your 'deposit' to friend, and risk losing it, that is up to you.
The agents really are a joke here - they took forever to get a contract in order, and it wasn't until jan that we got an inventory.
Deal with your LL. Write to him when you need to communicate, not the agent. your contract is with the LL
Thanks for the help here guys. The previous tenants (my other flatmate is also being hassled) have been into the agents last month, where they've told them that we should be sending them the deposit. so she's been saying it's our problem now.

returning a previous tenant's deposit is certainly not your problem (except inasmuch as they are a friend). You have no agreement/contract with them.

Scollk

Right - sorry, it's a joint tenancy.

Two of us want to leave, and two want to stay. The landlord is saying that as it is a joint tenancy, we will still have to pay. I assume the agreement will turn into a periodic tenancy at the end of the month (as two are staying). By all means though, as we two have given valid notice - the tenancy should come to an end and prevent it from becoming a rolling tenancy. If those two do stay, it must be on an adhoc contractual basis with the landlords. As far as I can tell from the situation, those who have given valid notice to leave should not continue to be liable.

Any ideas?

Scollk

Okay, an update. After a heated discussion between my house mate and me, we agreed that I'd send the deposit to the landlord. I have now done this and have a receipt. The landlord will now be settling the deposit with the previous tenant.

The deposit from the old tenants is now being requested, and the entire lot will be re-registered in our names.

Hopefully, after my tenancy ends this month I can get this back asap, as this leaves me with very little left in my student bank account (I've just graduated)

Not an ideal course of events, but better than me sending it to some bloke I don't know.

If anyone knows about my other query (above), I would be very grateful for advice.

Thanks!