Deduction from deposit

debsue

We were with a letting agents to whom we paid management fees for the property we let out. After 2 years of incredibly bad "service" we managed to get rid of them. The tenants we had through them have had great difficulty getting their deposit back, we think that the LA didnt use a deposit protection scheme. Everytime they asked which DPS they were using it, there request was ignored, and the 3 DPS we queried had not got the deposit. yesterday they finally received their deposit minos £50 "checking out fee" and £10 VAT.

There has been no checking out and £10 is too much VAT.

Last year one tenant we had did a runner owing rent and leaving the place in a mess. We claimed the deposit and the LA still took their 10%.

The question is, can they do this and is there anything the tenants can do?

Thankyou

Deb

BitterAndTwisted

£10 VAT at the current rate of 20% on a £50 charge is correct. As landlords it was your responsibility to ensure the deposit was protected. It's quite normal for the landlord to be charged for the check-in fee and the tenants the check-out. If there was no check-out how do you ensure that the property was handed back in the same condition? If you're happy with the tenants not being charged that fee I think you should reimburse them.

debsue

Tell me why we should reimburse them?
The deposit was paid to the letting agent, they were the agents acting on our behalf. We paid them 10% of the monthly rent to "manage" our property. The contract the tenants signed was written by the LA and states that the deposit will be protected by the DPS. They told us when we signed our contract with them the same thing. Do all LL who have a mangement agreement with a LA then check that they are doing what they say in the contract?

They are cowboys and want every last penny out of the agreement.

I currently rent a property and moved recent;y. the LA I previously went with were axtreemly professional and did their job correctly. I received the whole of my deposit, swiftly and from the DPS. Not in a cheque from the LA and with no deuctions. ( we live in a different part of the country now so had to use different LA)>

Wee_Willy_Harris

debsue wrote: »

Tell me why we should reimburse them?

To use your own words.....

debsue wrote: »

The deposit was paid to [STRIKE]the[/STRIKE] OUR letting agent, they were the agents acting on our behalf.

That pretty much sums it up.

debsue wrote: »

Do all LL who have a mangement agreement with a LA then check that they are doing what they say in the contract?

Sensible ones do. Particularly if the agents are cowboys.

debsue wrote: »

They are cowboys and want every last penny out of the agreement.

I see.

BitterAndTwisted

Even if the deposit was paid directly by the tenants to the agent, the monies were accepted on your behalf. The final legal responsibility for anything the agent does is yours: you are the landlord and you signed a contract appointed them to act on your behalf. Otherwise what would be the reason for them being called "agents"?

You don't have to reimburse the tenants for the check-out charge: as I said, if you don't agree with the deduction you could choose to pay them if you think it is spurious or unreasonable. How do you know that there was no check-out?

debsue

So the contracts signed mean nothing?

Wee_Willy_Harris

debsue wrote: »

So the contracts signed mean nothing?

To the tenant? No.

clutton_2

a tenant cannot in law be made to pay if a LL chooses an agent who is unprofessional. If an agent runs away with the deposit you - the LL - are responsible in law for reimbursing the tenant even if you - the LL - have never had the money

sequence

If it's not in the tenancy agreement that the tenants are liable for the checkout fee, they could sue you for the £60. Though I doubt many would bother going to court for so little.

You're liable for the actions of the agency acting on your behalf, so if they mess up, it's your problem.