Letting Agency deductions...

ArseandElbow

Can a letting agency make deduction from deposit for late payment of rent?

they wish to make £40 deduction for 5 period were rent was paid late. so £200.00 from a £400 deposit.

BitterAndTwisted

They can try but I would argue that such deductions are unenforceable and dispute any such deductions with the deposit protection scheme. Let the arbitrators decide.

Still, the only way to ensure that you're not slapped with unreasonable charges would be to ensure that you paid your rent in full and on time. Once could be an oversight, an error or a temporary difficulty. Five times is totally unacceptable

Mind_the_Gap

ArseandElbow wrote: »

Can a letting agency make deduction from deposit for late payment of rent?

they wish to make £40 deduction for 5 period were rent was paid late. so £200.00 from a £400 deposit.

What does your tenacy agreement or any other document you signed relating to your tenancy have to say about charges for late payment of rent?

If you signed something to agree you would pay £40 per occasion, then you may be bound to that.

It does however seems excessive, which is illegal - it starts to look like a fine, not a charge. A charge must relate to the work involved in reminding you to pay. It doesn't cost £40 to send you a letter reminding you your rent is late. Or did the agent have to send 4 or 5 letters on each occasion?

Anyway, I would advise you to refuse to pay - raise a dispute with the deposit scheme and let the adjudicator decide. I take it your deposit is protected?

sammatty

You would need to be provided with the basis of those deductions i.e interest and admin charges, however if it was detailed in the tenancy agreement what charges there would be, I think you have little chance of stopping the deductions.

ArseandElbow

the tenant run into financial difficulty took a huge paycut or would lose job. (not me thankfully) I was asked as I am currently renting I said I'd ask on here. I think it may have been on the TA - so possibly too bad for her in this case, I agree i thought it was quite high, hence why I asked here.

Mind_the_Gap

ArseandElbow wrote: »

the tenant run into financial difficulty took a huge paycut or would lose job. (not me thankfully) I was asked as I am currently renting I said I'd ask on here. I think it may have been on the TA - so possibly too bad for her in this case, I agree i thought it was quite high, hence why I asked here.

Even if the tenant agreed to it in advance, if it's ridiculoulsy high, it's unenforceable. Challenge it.

ArseandElbow

There was phonecalls when missed and possibly 2 or 3 letters (2 or 3 letters overall not each time), she doesn't remember seeing anymore than that, very stressed at time so trying to think back. Deposit is portected. she's been told another 2 weeks before seeing whats left coming back, they had all paperwork for utlities back at the end of July. I said this was unacceptabel too as they should only be 2 weeks (10 working days) processing anything.

BitterAndTwisted

Your friend needs to get onto the deposit protection scheme's website right away and claim the whole of the deposit back. If the LL has attempted to repay the deposit back less these deductions already your friend will have a rather short time-scale to lodge a dispute. When did the tenancy end?

ArseandElbow

a few weeks back, there wa sa bit of a delay waiting on utility bills /council tax to come back with confirmation all paid up. She moved out at the end of June.

ArseandElbow

I've passed info on, as no payments been made yet she actually was told today it should be completed by end of next week.

BitterAndTwisted

Your friend needs to get onto the scheme's website right away!

Just as an aside: the Council Tax and utility bills are nothing to do with the agent or the landlord if they are in the tenant's name. They are not bills which will be levied against them should the tenant default.