Spill the beans... on getting deposits back from landlords

Good_Thinking

I have been a landlord for several years with 4 different tenants. Despite the tenants profiles being professional, in full time work and mid 30's to mid 50's we have been very disappointed with the savvy way that they have treated our property. We have been good Landlords and for longer term tenants have not increased the already modest rent. Whilst all have fortunately paid their rent on time and paid the last months rent, they have failed to clean the property, maintain the garden or pay for any damage. When our last tenant left after a 2 year tenancy it was fairly evident that they hadn't opened a window in those 2 years and cleaning had been minimal. We had to decorate the place from top to bottom. A couple of light fittings were broken and we were told by the agency that we had ten days to find suitable replacements and produce receipts if we wanted to make a claim! As for the decoration it was difficult to prove negligence v wear and tear! We replaced the light fittings and got our money back one month after producing the receipt. The decoration we did ourselves but the paint still cost several hundred plus 2 full weeks work for the 2 of us; We also had to remove rubbish and garden and clean the windows inside and out. I am dreading going back to the house when our current tenant leaves as I get the impression that they arn't much better. I know we could give notice but by the time the 1st interim inspection was completed the damage had already been done and we were told it would be difficult to prove otherwise. After paying out in excess of £1000 on repairs in recent months, I feel that agencies take the easy option because they don't want to be caught up in time consuming disputes. Despite paying a full management fee and the deposit being secured by a third party, I believe it is near on impossible as a landlord to hold back anything substantial from the deposit. In my experience the tenant is always given the benefit of the doubt as it is easier for the agency. Don't suggest I change agencies as they are they isn't a better one in the location. I used to be a very caring and trusting person. I am now very cynical and very mistrusting.

mcbob_2

Innys wrote: »

My tenant knocked the room thermostat off the wall in my house, had it replaced and claimed that the (old) thermostat was defective which is why it needed replacing. They then witheld the rent to the value of the thermostat.

Tenants like that need regulating.

There's bad people in all walks of life unfortunately.

The advantage landlords have, if they have any sense, is that they can do a full reference and background check, including credit checks, employment checks, address history, previous landlord references, etc etc. There are many firms that do this now as a specialised service for landlords, for a fee of course.

You try doing the same amount of vetting to a prospective landlord and see what reponse you get!

It would pull up all those properties not on the correct buy-to-let mortgages, and highlight those landlords who have extended credit beyond their means... exposing those with a propensity to run off with the deposit, or in my case quit the scheme.

Oh and how many landlords declare their extra income on rentals....

The industry needs a regulatory body, it's like how the security industry used to be before the SIA was established - the wild west.

Innys

mcbob wrote: »

There's bad people in all walks of life unfortunately.

The advantage landlords have, if they have any sense, is that they can do a full reference and background check, including credit checks, employment checks, address history, previous landlord references, etc etc. There are many firms that do this now as a specialised service for landlords, for a fee of course.

You try doing the same amount of vetting to a prospective landlord and see what reponse you get!

It would pull up all those properties not on the correct buy-to-let mortgages, and highlight those landlords who have extended credit beyond their means... exposing those with a propensity to run off with the deposit, or in my case quit the scheme.

Oh and how many landlords declare their extra income on rentals....

The industry needs a regulatory body, it's like how the security industry used to be before the SIA was established - the wild west.

The point I was making is for every bad landlord you can list, I can come up with an equally bad tenant.

To be honest, I can understand why tenants are vetted. When a house is let, the landlord is giving tenants access to an asset worth tens of thousands of pounds, if not hundreds. The landlord will therefore want some kind of comfort that the prospective tenant isn't going to burn it down, wreck it or use it for anything but residential purposes, for example.

When a tenant rents a house the only asset they are giving to the landlord is 6 weeks rent (as a deposit) and one month's rent in advance. While that may be a significant sum to the tenant, in the context of the value of the house, it is likely to be immaterial.

The issues you have raised in terms of landlords finances, frankly, are none of your business. It's between the landlord, the lender and the HMRC.

The exception is the TDS which - if you still have concerns about - can be solved by arranging a let through an agent and insisting the deposit is lodged using their scheme registration number.

Personally, I would have no problem with regulation, but I won't be swallowing the cost myself - I'll simply increase the rent ask for. If tenants want more protection from rogue landlords (which I'm not), they should pay for it.

afrance

It's a long time now since I have been a tenant, but have been a landlord for a while with a variety of tenants and a variety of letting agencies. One property is a nice two-bedroom cottage, the other is a lower end of market flat (still nicer than the first flat I was a tenant in though). They have different problems, naturally enough.

Not all has gone well (including one time having to take the agency to court to get money that they had already been paid by the tenant, but it's interesting how a County Court Judgement makes things happen) but generally we've been pretty happy (although we have a tenant in arrears now, which is never a happy place to be for anyone).

One thing though at the lower end that really upset me was something that happened with a tenant who was unemployed for a while and applied for Housing Benefit. The District Council (as the providers of such benefit) asked us as Landlords if we would like the amount credited directly to us - it sounds like a good idea as then the money doesn't burn a hole in the tenant's pocket before it gets to us. The tenant found a job elsewhere, left in a hurry with no forwarding address. We informed the DC, and they stopped the payments to us. Not everything was covered by the relatively low deposit that we had asked for but we weren't too badly out of pocket and the tenant had been a decent tenant - or so we thought.

About six months later, the district council reviewed his Housing Benefit claim, and found that they had been overpaying him. This was apparently at least partly down to incompetence in the authority (it always makes me laugh hearing a local authority described as "competent" in the legal meaning - that shower never were!). They wanted to claim the money back. Of course they couldn't get the tenant - but as they had paid the money to the LANDLORD they could claim it back from us...

Our local councillor was sympathetic but useless. Of course, had we been unreasonable and evicted the tenant, or just decide not to let the property out, it becomes more of their problem - but they don't understand that. Sadly as a result of that, I will NEVER again accept direct payment from an authority, and that means that there will be certain tenants that we couldn't help.

Lucyfr

I have had some AWFUL private landlords over the years and am now thankfully with agencies (Philip James, fabulous and professional).

My advice is that if a landlord is refusing to give you your deposit back and you were a good tenant, never cease ringing them and turning up at their offices asking for it back and tell them you will carry on until they do something.

Also threaten to go onto university/student websites (such as accommodationforstudents) or the university noticeboards and warn everyone to stay away - I got my full deposit cheque dropped off within half an hour after I threatened this!!

Good Luck!!

Lucyfr

Innys wrote: »

The point I was making is for every bad landlord you can list, I can come up with an equally bad tenant.

To be honest, I can understand why tenants are vetted. When a house is let, the landlord is giving tenants access to an asset worth tens of thousands of pounds, if not hundreds. The landlord will therefore want some kind of comfort that the prospective tenant isn't going to burn it down, wreck it or use it for anything but residential purposes, for example.

When a tenant rents a house the only asset they are giving to the landlord is 6 weeks rent (as a deposit) and one month's rent in advance. While that may be a significant sum to the tenant, in the context of the value of the house, it is likely to be immaterial.

The issues you have raised in terms of landlords finances, frankly, are none of your business. It's between the landlord, the lender and the HMRC.

The exception is the TDS which - if you still have concerns about - can be solved by arranging a let through an agent and insisting the deposit is lodged using their scheme registration number.

Personally, I would have no problem with regulation, but I won't be swallowing the cost myself - I'll simply increase the rent ask for. If tenants want more protection from rogue landlords (which I'm not), they should pay for it.

It's not always a monetary issue with landlords! I have had my personal safety threatened 3x due to different landlord's negligence. Once when I complained that the men used to build a portion of one of the houses were drunk (i found 3 massive empty rum bottles in the cupboards and rubbish) and they botched the central heating system!! Once when I was homeless and forced to move into a property with no proper frontdoor that was behind schedule massively. The team at work on the house had also been fired for misconduct. I awoke one morning to find them squatting in the flat, after having let themselves in and had slept in the room above me!! I was a young girl waiting to start uni and had just moved out of home and you can imagine how frightening that was to wake up to! I told the landlord and he admitted they were the men he had fired but after they stole my computer that day he refused to acknowledge them!! In another house the landlady dragged her feet over securing a backdoor and the house was broken into twice, once an entire bottom bedroom was looted and the second time soon after the thief entered a bedroom while the tenant was sleeping and stole his wallet from right beside the bed...

I understand the property is worth money but so is the health and safety of tenants which is ignored time and time again!

[Deleted User]

Hi All,

I know this post is not exactly about the return of deposits but it is inrelation to fees paid to landlords or letting agents, however as far as I knowit only applies to Scotland.

The Rent (Scotland) Act 1984 (asamended) prohibits landlords (and letting agents) from charging tenants for thecost of preparing a lease, 'key money', administration charges, or for the costof preparing an inventory etc., All of these charges are known as'premiums'.

If you have beencharged by a letting agent/landlord a fee for setting up and entering into atenancy or for an inventory check or a credit check then regardless of whatthey have called it you should write to them to reclaim this fee.

I did this with mylast agent. They ignored my first twoletters, in my third I explained that if I did not receive a refund of the fee(£140) within 10 days then I would raise an action in the SmallClaim Court for the £140 plus interest plus fees. Within a week I had my full £140 refunded.

I see that Shelterand the Govan Law Centre (do an internet search to find details) provide adviceon this issue and how to go about reclaiming.


I think that MartinLewis should launch this topic as his next big reclaiming campaign, as millionsof people have paid these unlawful fees.



Good luck.

Helsieboo

Keep all communication and fight all the way!

If you know you're in the right and you're being unfairly treated and your deposit is being retained, don't be afraid to start the dispute process. I had an abusive landlord who tried to retain my £980.77 deposit a month after I moved out due to condensation. The check out report stated I'd bettered the property.

The mould had struck despite ventilating and heating the property and the landlady even acknowledged herself that it was a problem in the whole block of flats and everyone had the problem. However, she still tried to retain it and after months of fighting, I finally got it back less £25. I kept all communication I had with her in addition to photos. I think this is what helped me.

Lum

rugbyscottie wrote: »

The Rent (Scotland) Act 1984 (asamended) prohibits landlords (and letting agents) from charging tenants for thecost of preparing a lease, 'key money', administration charges, or for the costof preparing an inventory etc., All of these charges are known as'premiums'.

Is there an equivalent for England & Wales? I know I've just paid £275 for credit checks and referencing.

jamsterc

I cleaned my last flat on moving out 10 years ago after 5 years of tenancy. However, it had a problem with damp and mould and some broken tiles in the bathroom, both of which I'd reported to the LL at the time ( a year previously). I had also paid my last month's rent.

After me chasing for 3 months, the LL, (text removed by MSE Forum Team), wrote to me telling me he had had to pay for cleaning and redecorating and would be withholding the deposit. He also mentioned a small brick wall which my car had damaged slightly.

As I was aware he was selling the property on my departure I was not surprised it needed redecorating after 5 years, but shocked he was charging me for it. I revisited it after a year and met the new owners, who were lovely people. I noticed the brick wall was in exactly the same state I'd left it.

I always advise now to withhold payment of the last month's rent to avoid deposit theft by greedy unscrupulous LLs. If you have damaged something though or left it filthy then leave some money towards sorting it.

To be fair to Jonathan, the previous tenant didn't have this problem with him - he even offered to let her off some rent if she'd sleep with him! I obviously wasn't his type...