Letting agents won't give me details of where deposit is??

wiseguy2010

I recently rented out my apartment using a local lettings agency on a 'let only' basis. I had the understanding that the deposit would be paid into a Tenancy Deposit Protection (TDP) scheme and that I and the tenants would be given these details once the tenants were in.

However, after requesting the contact details of the scheme in which the deposit was paid into, the agents have told me that they cannot give me that information. They have said that at the end of the tenancy, both I (the landlord) and the tenants should go back to the agents to settle the deposit return. As I had a 'let only' contract with the agents, I am a little baffled and concerned why they are withholding this information from me. I am not paying them to manage my letting. I am aware that ultimately, as the landlord, I am responsible for the return of any deposit. What happens if the lettings agency goes out of business? I will have no idea where the deposit has gone and i will have to cough up the extra money myself.

Since day one of dealing with the agents, I have had very poor communication from them. They rarely return my calls and are not helpful at all by giving vague answers to my concerns. As a result, I am beginning to wonder whether a deposit was paid at all? Thus I am reluctant to ask my tenants directly what information they have.

I have looked up the deposit procedure on the directgov website and all articles suggest that as the landlord, I should know where the deposit is. Can anyone clear this up for me?

ps. My tenants have been in over 3 months now and have been excellent all round.

joanna_johnson

The first thing I would do is to check the tenancy agreement as this is where info regarding a deposit will be (it should say the amount and where it is being held). If you can't find this on the AST then ask your tenants how much they paid and what info they were given. It is quite normal these days for agents to collect the deposit and place it within one of the schemes (even on a let only basis) where it remains until end of tenancy but you and your tenants have a right to know which scheme is being used (especially your tenants as it is their money). The tenants should have received all of his info when they signed the agreement.

After doing the above, if you are still none the wiser then demand the agent gives you the info. I assume they are not members of ARLA.

As it is your tenants bond, I would think they will be more concerned than you are and it may be better if they speak to the agents.

zappahey

joanna_johnson wrote: »

As it is your tenants bond, I would think they will be more concerned than you are and it may be better if they speak to the agents.

Absolutely not true. The safeguarding of the deposit is the landlord's responsibility and he is liable if it is not properly protected.

The agent can act on the LL's behalf but that does not take away his responsibility.

It is very much in the LL's interest to sort this out, PDQ.

joanna_johnson

zappahey wrote: »

Absolutely not true. The safeguarding of the deposit is the landlord's responsibility and he is liable if it is not properly protected.

The agent can act on the LL's behalf but that does not take away his responsibility.

It is very much in the LL's interest to sort this out, PDQ.

The money still belongs to the tenant therefore it is most certainly in his interest to find out where it is. It may be the LL's responsibility but by paying an agent he had assumed it would be dealt with and placed into a scheme. Once again, I would point out that the AST should contain the info.

pinkshoes

I would send a recorded delivery letter to the letting agent, reminding them that it is a legal obligation to protect the deposit with one of the three government schemes, so they have 7 days to send you the details of which scheme the deposit is protected in, or hand the deposit over to you (so you can protect it yourself). If they don't respond, write again giving them 7 more days, otherwise you will take them to court for the money.

The tenant could sue you for 3x the deposit if it's not protected, so make sure you send the letters recorded, so you can prove it was the letting agent who refused, not you.

joanna_johnson

pinkshoes wrote: »

I would send a recorded delivery letter to the letting agent, reminding them that it is a legal obligation to protect the deposit with one of the three government schemes, so they have 7 days to send you the details of which scheme the deposit is protected in, or hand the deposit over to you (so you can protect it yourself). If they don't respond, write again giving them 7 more days, otherwise you will take them to court for the money.

The tenant could sue you for 3x the deposit if it's not protected, so make sure you send the letters recorded, so you can prove it was the letting agent who refused, not you.

Quite right, it's certainly not you or your tenants that have done anything wrong.

pinkshoes

joanna_johnson wrote: »

Quite right, it's certainly not you or your tenants that have done anything wrong.

Very true, but the LL is the one that would get sued for not protecting the deposit, so needs to have evidence that he's done what he can to get hold of this deposit so it can be protected. He would not be able to use the excuse of a lousy letting agent in court - it just wouldn't wash!

tbs624

wiseguy2010 - am assuming you are a novice LL. The LA works for you , not the other way round: don't ever let an LA dictate to you how to deal with your property and your tenant.

No qualifications, no training, no specific expertise needed to set up as an LA so a LL should know what is going on with his/her tenancy at all times.

You should have (a) read through the contract that you have with the LA and (b) have a copy of the contract signed by your tenant.

Sign up to Landlordlaw or the NLA, or a local LL affiliated LL association & keep yourself up to date with LL&T laws & regs. (Dicsount on some LL ins premiums and tax deductible membership fee)

Have a look online at DPS, TDS and mydeposits - if they confirm that no deposit is registered with them you then write to the LA (keep a copy).and ask them to confirm what they have done with the deposit. I would not be as generous as pinkshoes - 48 hours max for them to confirm.

Check whether the LA is signed up to an voluntary code of practice via NAEA, NALS, UKALA, ARLA etc - even if the logo appears on their windows or notepaper check their membership online and then make a formal complaint.

You can also contact your local Trading Standards Office if the LA has held on to a Ts deposit and is refusing to discuss the matter with you.

If an LA receives a deposit he can be held liable for failing to register it - what does it say about tenancy deposit responsibility in your agreement with the LA?

You need to get on with this - and let the Ts know asap that you are sorting it out. It takes less than 10 mins to scheme register a deposit online.

tbs624

pinkshoes wrote: »

Very true, but the LL is the one that would get sued for not protecting the deposit, so needs to have evidence that he's done what he can to get hold of this deposit so it can be protected. He would not be able to use the excuse of a lousy letting agent in court - it just wouldn't wash!

Is potential for the LA to be held liable if they received the deposit from the T - see Hannells Lettings case.

Trollfever

No qualifications, no training, no specific expertise needed to set up as an LA

Hang around this Forum to read about greedy, lazy, incompetent Letting Agents.

wiseguy2010

Thanks for all the advice so far guys. Yes I am new to this, I am an 'accidental' landlord.

The agent's promotional material states that they are members of NAEA but not ARLA. Where can I get this confirmed and is there a big difference between NAEA and ARLA?

I have re-read a copy of the AST and it states 'the deposit will be received by the landlord's agent as agent' but it doesn't mention anything about a protected scheme. However, I clearly remember the LA telling me over the phone that it was in the protected scheme when I queried it the other day. The AST was not signed by the tenant but was signed by the agent on the tenants behalf. I did find this odd at the time but again didn't think much of it. In fact, I don't remember signing any contract at any stage. I only have a copy of the AST with the agents signature on it, not mine.

Alarm bells are ringing now, I will contact the tenants and ask them what they know.