Can my landlord hold my deposit if I terminate early?

wkyeung

Hi all,

I was hoping for some advice regarding this matter. I'm currently renting a one bed flat, and would like to terminate early to move to another part of the country. I'm on an assured shorthold lease until June 2013.

The landlord informed me they would readvertise the flat and I will have to keep paying rent until a new tenant takes my place, which is fine. However they also said they would be holding my deposit of £500 as well because of early termination. But they don't have any financial losses resulting from this if a new tenant takes my place. Is it legal for them to do this? I thought a deposit was only for any damage done to the property by which they can deduct the appropriate amount from the deposit.

I hope someone can provide some insight. The deposit is also protected under the DSS.

Thanks

tbs624

You entered into a binding contract with your LL and if you want to renege on it you will need his agreement. He is entitled to expect you to pay for the *reasonable* readvertising costs etc involved in finding a replacement T and to expect you to continue to pay the rent etc until a new suitable T can move in.

The LL can only use your actual tenancy deposit to cover his losses from dilapidations, unpaid rent etc as defined in your tenancy agreement or other tenancy paperwork. However, if both parties agree it can be used for other things.You can confirm this with the tenancy deposit scheme itself.

Whatever arrangement you come to with the LL in order to be able to surrender the tenancy, get *full* confirmation of the terms in writing.

bitsandpieces

The landlord can ask for reasonable costs for advertising early.

Aside from what's legal, though, it's in your interest to retain some goodwill with the landlord: you want them to get a new tenant in ASAP, and it would be easy for them to delay this by advertising the property slowly and badly while you're stuck paying rent...or to do it much quicker by advertising well and pushing to get someone in there soon.

wkyeung

So do you think it's reasonable for them to take the whole amount? They said readvertising on their website is free, but £100 if a tenant was successfully obtained from an external letting agency. I can also help readvertise too.

BitterAndTwisted

This is not an issue I would be taking up with them before they have found a replacement tenant.

Once a new tenant has been found you then liaise with the agent/landlord to arrange for your check-out inspection. If they want to make an arbitrary deduction not related to cleaning or damage just dispute it through the deposit-protection scheme

wkyeung

Okay, I will do this first and see how it goes. Thanks for your responses.

bitsandpieces

BitterAndTwisted wrote: »

This is not an issue I would be taking up with them before they have found a replacement tenant.

Once a new tenant has been found you then liaise with the agent/landlord to arrange for your check-out inspection. If they want to make an arbitrary deduction not related to cleaning or damage just dispute it through the deposit-protection scheme

Seems a very sensible approach. If you need to move anyway, you can contest any unreasonable deductions once a new tenant has been arranged.

I'd budget to pay at least something - for example, if it costs £100 for an agency to find a new tenant then it would seem reasonable for the landlord to ask for this.

BitterAndTwisted

Please, PLEASE ensure that you get the agent/landlord to put it in writing precisely what they intend to charge you for releasing you from your tenancy if you haven't received it already.

Kynthia

I disagree, should get in writing first what the fee for early termination is.

You signed a contract to pay rent until June 13. If you want to break that agreement the LL can charge you whatever he likes and you either agree or stay until the end of the contract. Many LLs will agree to allow the tenant to leave if they pay for the readvertisement costs and rent until the new tenant moves in. Yours is asking for rent and your deposit, so you either agree or disagree.

BitterAndTwisted

Eh, they can ask for the deposit but the OP is under no obligation to agree to them swiping it and I most certainly wouldn't put that agreement in writing. Let them say what they like, once the tenancy has been surrendered the OP can contest them retaining it via the scheme.

whalster

Your landlord is being reasonable , as has been said above you could have been asked to pay untill the end of your contract , one other thing do you not know anyone who would be interested in it ? make it as easy on yourself as you can .