Advice on making sure tenant (me) gets the deposit back

danswer

Hi everyone,

I need some advice about making sure that I get my deposit back after tenancy of my rented flat in London.

About a year ago, I found my current flat through a letting agent. The letting agent had been quite incompetent and I immediately noticed a lot of problems with the flat - broken door handle, broken vents, etc, and even after the tenancy agreement was signed, I still didn't get the set of keys from the Landlord!

It turns out the landlord was only using the agent for listing the property. After signing the lease, the agent was quickly to point out that they are not responsible for sorting out any of those problems. (don't you just love those agents! :mad:). I eventually got my keys and had the issues sorted out by painstakingly chasing the Landlord. But, one thing was never clarified or given to me - the deposit scheme information.

The landlord hasn't given me any information on the deposit scheme (which I had in my previous rented flat through an agent and I recall is mandatory). The landlord would like to renew the tenancy and I have verbally agreed with the condition of a break clause (I may move out in 6 months). However, the landlord still hasn't provided me with the deposit information.

My concern is a sticky situation where the landlord doesn't pay me back the deposit. Should I be concerned that the landlord won't pay me back the deposit? What options do I have if the tenancy is ended and the landlord refuses to pay my deposit back?

Thanks, your feedback is appreciated.

-DAN

BitterAndTwisted

It is a legal requirement for your deposit to be lodged with one of the three approved schemes if your rent is less than £25k per annum. You should double-check for yourself with them before you raise this with the landlord:

DPS-Deposit Protection Service: depositprotection.com
MyDeposits: mydeposits.com
TDS- Tenancy Deposit Scheme: thedepositservice.co.uk

Usually there is mention of the deposit protection scheme in the tenancy agreement. Strictly the landlord or their agent should have informed you of which scheme they have lodged it with within 14 days of the agreement.

If it's not protected then you should WRITE to your landlord asking where the deposit is held. There are penalties for not protecting it but they are not always imposed by the courts as the penalty is not mandatory but it would do you no harm in failing to mention this bit in your letter.

G_M

danswer wrote: »

Hi everyone,

It turns out the landlord was only using the agent for listing the property. After signing the lease, the agent was quickly to point out that they are not responsible for sorting out any of those problems. (don't you just love those agents! :mad:).

The landlord hasn't given me any information on the deposit scheme (which I had in my previous rented flat through an agent and I recall is mandatory). The landlord would like to renew the tenancy and I have verbally agreed with the condition of a break clause (I may move out in 6 months).Thanks, your feedback is appreciated.

-DAN

You can't really blame the agent! They were employed to do a job - find a tenant, and they did this. That's what the LL paidt hem to do. No more.

As pointed out by others, the deposit must be protected by law (unless you are in Scotland). WRITE to the LL, quoting this if you feel the LL is unaware, and ask for your deposit to be lodged without delay.

As for the renewal, you could always move to a periodic tenancy when your fix term ends. This happens automatically if you stay. Everything as before except the contract runs till one side gives notice (you, one month, the LL 2 months).

danswer

Thanks B&T,

Yes, my rent is less than £25k per annum. You're right, I recall my previous rented flat had a deposit held in DPS (and I did get the deposit back then, but it was through the letting agent). So I'm assuming the scheme is required even for private landlords?

No mention of any scheme in the tenancy agreement (It's a boilerplate AST agreement written by the landlord). I have a feeling that the only place my deposit is being held is the landlord's bank account

Thanks for the advice, I think I will write to the landlord. The landlord is supposed to send me a renewal AST. Maybe I should hold signing until I get the deposit scheme information?

Cheers,
DAN

BitterAndTwisted

ALL landlords are obliged to protect the deposit without exception (bar the upper limit), even where the deposit has been physically paid over to the agent. It's the landlord's responsibility to ensure the deposit has been protected even if the agent has received it and have not either protected it for you on the landlord's behalf or not paid it over to them to protect it themselves, so do not accept any ifs, buts or maybes from your landlord.

N79

BitterAndTwisted wrote: »

ALL landlords are obliged to protect the deposit without exception (bar the upper limit), even where the deposit has been physically paid over to the agent. It's the landlord's responsibility to ensure the deposit has been protected even if the agent has received it and have not either protected it for you on the landlord's behalf or not paid it over to them to protect it themselves, so do not accept any ifs, buts or maybes from your landlord.

Unless the LL can meet the test in Draycott vs Hannells, in which case the Agent is responsible for non compliance (and the LL for the return of the deposit)!

I'm afraid the High Court introduced a couple of buts and maybes!

BitterAndTwisted

Yes, I know but it's probably doubtful that this particular landlord is aware of Draycott vs Hannells and I wouldn't be the one to advise him of it either. Would you?

N79

BitterAndTwisted wrote: »

Yes, I know but it's probably doubtful that this particular landlord is aware of Draycott vs Hannells and I wouldn't be the one to advise him of it either. Would you?

If they never received the deposit from the agent (eg because they went bust before handing it over / were scammers etc) and the LL has taken action against the agents but has so far failed to recover the deposit then yes, I would as this was exactly the "loophole" or LL protection that the High Court was opening.

LL remains liable for returning the deposit though!

To the OP - BandT's opinion on what to do is spot on. Sorry for the little aside.

danswer

I remember being quite shocked when, a week after paying the 1st month rent + the 6 week deposit to the Agent (plus their fees), calling the Agent up and asking them for deposit scheme details, and the Agent saying it's not their problem (because it was Let-Only), and that I have to deal with the LL myself. This despite the fact that it was the Agent who took the money first. I thought surely that the agent would give the LL the month rent, but put the deposit into a scheme...but nope, guess I was too naive to think so

BitterAndTwisted

That the agent would receive the deposit from you isn't surprising as that to me is part of the tenant-finding service the agents were carrying out for the landlord.

Still, whoever has the deposit, you must write to your LL asking about where YOUR money is.

tbs624

BitterAndTwisted wrote: »

It is a legal requirement for your deposit to be lodged with one of the three approved schemes if your rent is less than £25k per annum. You should double-check for yourself with them before you raise this with the landlord:

The rent threshold for an AST changed on October 1st 2010, to 100K per annum

BitterAndTwisted wrote: »

DPS-Deposit Protection Service: depositprotection.com
MyDeposits: mydeposits.com
TDS- Tenancy Deposit Scheme: thedepositservice.co.uk

URLs for MyDeposits and TDS respectively are:

http://www.mydeposits.co.uk/
http://www.thedisputeservice.co.uk/


OP - just check for yourself with each of the three schemes and *then*, if the response is negative, write to the LL (keep a copy) saying that you have checked and could he please arrange for your deposit to be registered pronto. It can be done online in a few minutes.