deposit question-Scotland

aggypanthus

The tenant lived alone, had her name only on 6 months lease, at this time, the law regarding Deposit Schemes was not in place in Scotland, therefore we held the money ourselves.
After 18mnths, she moved her boyfriend in,a joint lease was signed, no actual deposit changed hands as we already had the original money.
Now both persons have tried to do a runner as they split up. They wont pay the last rent due. As this equates to the deposit, all we require to conclude things is damages amount.
My concern is the deposit being held by us as it rolled over , if we go to small claims court to recover amount for damages , will this get us in trouble, should we have put the money in a DScheme at the time of new lease, or is it acceptable that we rolled is over as it were?
Our agent is trying to scare us, that we could get a massive fine if tennant tried to counter sue .

SwanJon

A few questions first
When did the joint lease start?
Was it a short assured tenancy (AT5 etc)?
Did it revert to a rolling monthly or 6 monthly (if no term in lease would be same as original length)? In the link belwo this is 'tacit relocation'.

http://www.scotland.gov.uk/Topics/Built-Environment/Housing/privaterent/government/SGTD1/faqlandlordsandlettingage

Based on that, you probably should have protected the deposit, and may be fined 3x the deposit on top of the deposit itself.

(still learing this, so keep researching)

aggypanthus

Hi , joint lease started last Nov 20th, hasnt yet ended its SAT 6mnths.
Previous sole one was SAT then as you say , reverted to rolling monthly.

Fire_Fox

You should have protected the deposit when the new tenancy agreement was signed, you will likely need to refund in full. Your letting agent is not trying to scare you, they seem to be far more aware of the legislation and implications than you.

tbs624

aggypanthus wrote: »

The tenant lived alone, had her name only on 6 months lease, at this time, the law regarding Deposit Schemes was not in place in Scotland, therefore we held the money ourselves.
After 18mnths, she moved her boyfriend in,a joint lease was signed, no actual deposit changed hands as we already had the original money.
Now both persons have tried to do a runner as they split up. They wont pay the last rent due. As this equates to the deposit, all we require to conclude things is damages amount.
My concern is the deposit being held by us as it rolled over ,

Are you using the term " rolled over" to try to describe the end of one tenancy (original female T) and the start of a new joint tenancy for the original T plus partner? Is so, you are wrong to do so. The fact that you already held the deposit for the orignal tenancy and simply retained it as part of the T's obligation to provide a deposit under the new agreement does not matter.

If your "rolling over" refers to when the original Fixed Term expired, although you don't give the exact dates of the original tenancy you can see here the timetable for getting deposits scheme registered in Scotland:

1 Deposit received prior to 7 March 2011 and tenancy renewed by express agreement or on tacit relocation on or after 2 October 2012 and before 2 April 2013

Regulation 47(a) Within 30 working days of renewal

In any other case

Regulation 47(b) By 15 May 2013

2. Deposit received on or after 7 March 2011 and before 2 July 2012
Regulation 48 By 13 November 2012

3. Deposit received on or after 2 July 2012 and before 2 October 2012
Regulation 4 By 13 November 2012

4. Deposit received on or after 2 October 2012

Regulation 3 Within 30 working days of the beginning of the tenancy

if we go to small claims court to recover amount for damages , will this get us in trouble, should we have put the money in a DScheme at the time of new lease, or is it acceptable that we rolled is over as it were?
Our agent is trying to scare us, that we could get a massive fine if tennant tried to counter sue .

It is a pity that your Agents did not give you some sound guidance earlier in the process but as LL, the buck stops with you.

You are also obliged to provide the T with very specific information relating to the deposit scheme etc. Failing to comply with the regs for both the actual registration and the provision of that info means that your T is able to apply to the Sheriff Court for sanctions against you and they have up to 3 months after the tenancy end in which to do so. The penalty awarded must be between one and three months' deposit equivalent and the T can ask for their court costs to be met.

It would probably be worth your while joining up to SAL ( Scottish Associationof LLs). Your membership fee will be tax deductible and you will have access to much useful information.

aggypanthus

Yes the rolling over refers to when the original fixed term ended, a few months on from that was when the new lease was signed.

This is the case as you wrote, (sorry, cant do selective quotes).
Thanks very much for this info.
Decided to just leave things as they are and not ask or seek damages. She was a good tennant and we did the work ourselves so we can bear the cost of paint and cleaning, and carpet , shall put it down to experience.