Ex tenant threatening court over return of deposit

sarahevie

I wrote previously that the deposit had been lodged with DPS - repayment agreed between myself and lead tenant.

Other tenants, there were four in total, not happy with deductions. Now one of the tenants (not the lead tenant) has sent me a solicitors letter threatening county court. Pay the remainder of the deposit within 14 days, cheque made payable to the solicitors.

Not sure what to do now, just pay it. Although

a) she is claiming she paid the full deposit, she didn't it came through a third party as the tenants were abroad at the time.
b) she's not even named as a tenant with the DPS as we didn't know she was moving in when the deposit was lodged it is just in the name of the lead tenant.
c) why would you make the cheque payable to the solicitor and not their client
d) surely when you agree repayment via the DPS without dispute surely that is the end of it.

BitterAndTwisted

Return the deposit minus the agreed deductions to the lead tenant. If this person wants to go to court to claim their share of the deductions, let them: that is their right Do not enter into any correspondence with either the solicitor or their client.

mynameisdave

Does she have proof that she paid you money for the deposit?

Presumably the deposit, receipt for it, and DPS registration was done n the name of the lead tenant.

If the DPS and named tenant have agreed the deductions and it has been paid to them then as far as I can see she doesnt have a leg to stand on.

I would tell her to take it up with the lead tenant if she is not happy with the deductions. They can sort out the difference between them.

G_M

Have you got agreement for the deduction(s) in writing? From lead tenant?
Is this tenant named on the lease as a joint tenant?
Is the lease 'joint and several'?
Has the deposti been released by the DPS (in accordance with the agreement)?

a) Assuming 'joint and several', then the issue of who 'funded' the deposit is not relevant. You the landlord received a single deposit form 'The Tenant' which in this case comprises two or more individuals. However for legal purposes they are a single entity.
b) I can understand her not being named with DPS if another tenant was the lead tenant, but how could you not know her name? Presumably the tenancy agreement was drawn up/signed before/when the deposit was taken? In which case the various tenants' names must have been known.
c) if she has instructed a solicitor this is normal.
d) Yes - normally. However it does not preclude action in the Small Claims Court, so she could sue you. Note that solicitors are not permitted in a SCC, nor are their fees recoverable.

What were the deductions for and how much? What evidence do you have
a) that they were justified and
b) that the lead tenant agreed.

I suspect this is a threat which she hopes will have you posting a cheque, but which will go no further, though without knowing the circumstances it's hard to say.

sarahevie

The tenants were international students, so their 'friend' (who was living in England,) viewed the property and paid the deposit to 'secure' it for his friends.

I immediately lodged the Deposit with the DPS under the name of the 'lead' tenant as instructed by the 'friend.'

They were not due in the country for another 2 months. When they arrived in the country, they signed a standard AST with four names on it and they received from the DPS the repayment IDs etc. I called the DPS to add the other three names but they said only the 'lead' tenant was important and the tenants were happy with this.

At the end of the tenancy. The 'lead' tenant, came to my house with bank details which were the details of the girl who has initiated legal proceedings, his repayment ID and we discussed deductions and he was happy for me to retain £400 and for them to receive £800. We filled in the form together and 10 days later the money was in our accounts.

I'll be honest as the case wasn't going to arb I kept less evidence than I normally do. However, I do have all my photos, invoices, signed inventory etc. I have wiped my video recording, and the printed signed photos.

I made a mistake I honestly thought that once you had agreed between yourselves that was the end of it.

sarahevie

Haven't got it in writing from the lead tenant, as we filled in the online form together. Which I took to being agreement in writing.

The girl starting proceedings is named on the contract which is joint and several.

Deposit has been released in accordance with deposit protection rules I still have the email.

a) Justified just photos, signed inventory, invoices.
b) Not a lot of evidence that the lead tenant agreed, however, when filling in the online form it says do you agree or dispute, he pressed agree. He even had to type in the amount of the deposit he wanted to claim and he typed £800.

sarahevie

mynameisdave wrote: »

Does she have proof that she paid you money for the deposit?

No as it was paid by a friend on their behalf, as they were living abroad at the time.


Presumably the deposit, receipt for it, and DPS registration was done n the name of the lead tenant.

Receipt for the deposit was given to the friend who never lived there, nor was on the contract he paid it to secure them accommodation.

If the DPS and named tenant have agreed the deductions and it has been paid to them then as far as I can see she doesnt have a leg to stand on.

DPS paid the deposit directly to them, to the bank which the lead tenant nominated. The DPS didn't agree the deductions as it was agreed between lead tenant and myself and therefore arb was unnecessary.

Hope that's clearer

DVardysShadow

Previous thread https://forums.moneysavingexpert.com/discussion/3484435

It seems that this tenant has been harrassing.

BitterAndTwisted wrote: »

Return the deposit minus the agreed deductions to the lead tenant. If this person wants to go to court to claim their share of the deductions, let them: that is their right Do not enter into any correspondence with either the solicitor or their client.

Mostly, I agree, but I tend to think that this tenant has misled the solicitor to some extent.

A short letter to the solicitor stating that

• the deposit is being dealt with via the DPS
• all dealings with the deposit will be addressed with the lead tenant
• no deposit was received directly from this tenant

sarahevie, might be worth just explaining to us how you got this tenant and how you got their deposit - and whether they were on a joint and several tenancy?

sarahevie

I'm on a list of accredited landlords with the local university, and they introduced me to this international student who had recently graduated, but was looking for a house for some friends who were coming over to do the same course as he had previously done, the year before.

It can be very difficult for international students to find tenancies as typically, we let in Jan for the next academic year, and they are often not in the country.

I was unsure about international students with no guarantor, no English bank account but I have a five star rating with the university and they put pressure on me to not discriminate. The 'friend' paid the deposit but wasn't sure at the time which friends would be coming to study. Only one was guaranteed, so this tenant became the 'lead' tenant.

The AST is the standard NLA agreement obtained from the university, which was signed by all four students in Sept 2010.

sarahevie

My worry is the tenant lying in a small claims court, and it being 'big evil landlord' versus 'poor international student'. I also work hard to maintain my five star accreditation status with the university, which I don't want jeopardising.

I've also had experience of arb which hasn't gone my way. It took £6000 to re let the property, I understand a lot of this was betterment and not allowed, but I wouldn't have started that if it hadn't been so trashed to begin with. I ended up with £100 which was shocking:eek:

We are talking £400 and I'm not sure whether it is worth the expense, when I also work, and would have childcare commitments. If I had to travel to court it might cost me £200 for the day, with lost earnings, travel etc. If I lost I'd be really out of pocket.

Anybody know about legal costs for small claims, extras that could be added etc.

vax2002

Yes cost will be added, you will need REAL receipts for any deductions you are claiming from people who are prepared to stand in court under oath and vouch for them.
If it all adds up, you have nothing to worry about.