Tenant wants deposit back

kay_13_2

Hi

Im a landlord and ive always been very fair with my tenants deposit giving it all back except where real damage is caused. A new tenant came to view the flat and paid the holding deposit into my account later that day, no agreement signed. We agreed over email that it was a 1 year tenancy starting 1st July and contract would be signed that day. He asked for the flat to be decorated which was a resonable request which i started that day, pulling down wallpaper and lifting up the flooring. All the furniture is in storage and he has now decided he doesnt want the flat and wants his deposit back !! Where do i stand with this, the flat is unviewable and my mortgage payment is due tomoro and as i have taken down all advertising i have no-one to take the flat. Can i keep the deposit and use it as the rent as he has left me high and dry ????
Any advice would be great
Thanks

angrypirate

What was the terms and conditions attached to the deposit? Was it taken and stipulated it was going to be a holding / security deposit then would be used as the deposit, paid into a TDS?

theartfullodger

Depends on the terms you agreed when you took the deposit..(You did agree terms, obviously...) eg if it said "Deposit, non-returnable if tenant changes mind" then you can keep it, if not I suggest you return it, pronto...

That your mortgage payment is due can hardly be a surprise: You must have know that in lettings sometimes there are voids, sometimes tenants don't pay, sometimes you need to spend money.

kay_13_2

Hi angrypirate

i forgot to say i am in scotland so dont have tds here yet. The deposit was a holding deposit


Thanks

jjlandlord

kay_13 wrote: »

The deposit was a holding depositThanks

If so, I'd say keep it.

kay_13_2

i did say at the time the holding deposit was non-returnable

kay_13_2

thanks jj im thinking so too, he waited 2 weeks to tell me this and 2 days before he was due to move in after i had started decorating to his request.

angrypirate

If you stipulated it was a holding deposit and have given him chance to change his mind then Id say you've been fair and you can keep it. Is there a reason why hes pulling out? If its a term in the contract he deems unfair and you are refusing to remove then that can be classed as under duress in which case you ought to return the deposit, otherwise your in the clear to keep it.

kay_13_2

angrypirate wrote: »

If you stipulated it was a holding deposit and have given him chance to change his mind then Id say you've been fair and you can keep it. Is there a reason why hes pulling out? If its a term in the contract he deems unfair and you are refusing to remove then that can be classed as under duress in which case you ought to return the deposit, otherwise your in the clear to keep it.

It says in the emails it was a holding deposit, he said he will feel the cold as its a basement flat !!!!!??????!!!!! But im sure he has viewed somewhere else he just likes better. There was no contract or other paperwork given yet as he couldnt come to get it (he traveled from edinburgh to glasgow) and HE wanted to sign the contract when he was there to inspect the work.

pararct

kay_13 wrote: »

It says in the emails it was a holding deposit, he said he will feel the cold as its a basement flat !!!!!??????!!!!! But im sure he has viewed somewhere else he just likes better. There was no contract or other paperwork given yet as he couldnt come to get it (he traveled from edinburgh to glasgow) and HE wanted to sign the contract when he was there to inspect the work.

You have the email paper trail with his replies? If the emails mention 'holding deposit' and he has replied in a subsequent email then he cannot argue he did not know about it.

Politely refuse the return and get the place fixed up and back on the market.

cooltt

I'm a tenant and i wouldn't expect it back. Spend it on something nice for yourself.