Tennent damage & i hold deposit but...

Mark09

Tennet check out 4 months early without notice. I sent someone round to do check-out report to find many damaged items/dirty etc etc way exceeding the £900 deposit which I hold. BUT I never put the deposit in the DPS and they demanding the desposit back.

Am i in the wrong to keep the deposit here?

I do have before and after photos which were included in the inventory, but never signed by tenent.

Also found out all the bills were in false name!

BitterAndTwisted

There are penalties for not protecting the deposit. Like three times the deposit amount. If your tenants are aware of this and decide to take you to the small claims court to recover it, you could be be in a very weak position.

Did your tenants leave the property before the expiry of their fixed term?

G_M

1) If you are in Eng or Wales, yes you are wrong. You could be taken to court by the tenants and made to pay them 3 x the deposit! Why on earth did you break the law?
2) Have they surrendered their tenancy? Are you sure? If they return, just because their rent is in arrears does not mean you can deny them access. Read this warning.
3) If the tenants did not sign the inventory/check in photos, then although you could present them to a court as evidence, the tenant could deny they are genuine. Your word against theirs.

It sounds like you took a very haphazard attitude to this rental. Did you credit vet the tenants? Check references? This sound like a classic case of 'professional' tenants taking advantage of an amateur landlord.

Learn, pay the bills, and do better next time.

Mark09

They advised me they were leaving but not in writing. They since taken up new agreement else where. I actually was relieved they left tbh.

I estimate 8k of damage - do i just hand back the deposit and learn?

G_M

Alternative is Small Claims Court for the damages. You pay them 3 times deposit (£2,700) and maybe get awarded your £8,000.

Then your difficulties start. Have they got £8000? They'll be told to pay £20 per month. Then they'll default even on this amount and you'll have to go back to court. Each court visit costs you more meanwhile.

Ten years from now, you'll still be chasing the money.

Mark09

hmm i doubt it...

G_M

Cryptic!

Still, you know the circumstances, and tenants, better than we do.

Or does you past attitude towards keeping within the law, and following accepted business practices, give an indication of your future intentions?

slyracoon

Put it in a deposit scheme NOW.

Sounds like they have not officially surrendendered their tenancy (you don't have it in writing). Get it in writing from them or issue them with the correct forms e.g. section 21 once their fixed term expires or section 8 once they are in 2 months of arrears.

Did you have a gas safety certificate? Permission to let from your lender?

You need to learn from this and ensure you understand your legal obligations.

Mark09

Can i do that and pay into DPS now?

Gas = yes
Permission to let = yes

but they never signed the inventory!?

slyracoon

Yes you can pay it in now. You are obviously supposed to do at at the start of the tenancy but it is extremely unlikely you would be penalised and forced to pay them 3 x the deposit if you can demonstrate that you retrospectively protected it.

You may as well just give it back to them tough if you don't have a signed inventory from them. They will simply dispute the costs with the DPS and the DPS will side with them if you can't prove the condition of the property at the start of the tenanacy. If you give it back to them be sure theres a paper trail (e.g. don't give them cash) or else they could claim they never recieved it and take you to court for 3 x deposit penalty.

BitterAndTwisted

You can protect the deposit in one of the schemes now and I think you should do so.

Unless you have some way of proving when the photos were taken of the property and that it was in that condition at the start of the tenancy, I think you'd be on a hiding to nothing with the damage.

As I see it, you one possible strategy is to ask the tenant to give you their formal notice and negotiate on the unpaid rent. If they were on an AST they are liable for the whole of the rent until it expires unless you accept their early release from the contract.