Refunding tenants deposits - reasonable time scale?

topbargainhunter

Hi all, I'm looking for a bit of advice.

We were renting out a flat until 3 April. The tenants deposit was held in a scheme by our letting agents and the tenant gave them plenty of notice of moving out, but over a month later the tenant still hasn't had her deposit back.

She has called and emailed umpteen times, and finally spoke to an area manager last week. Still no deposit though, or rent refund, which I have already paid back to the letting agent.

Is there any law, or does the tenant have any rights to expect better service than this? I think it's shocking, and if we had held the deposit, she'd have had it back within a few days (as soon as I'd had chance to check the property for damage).

Thanks in advance

Werdnal

Which deposit was the scheme held with? Some schemes require the tenant to log in and confirm the release. Has the tenant looked on the scheme website to find out the status of their deposit?

topbargainhunter

Sorry I don't have the name of the scheme to hand, but it's not online. I had to put in writing to the agent that the deposit could be refunded in full back in April. They appear to just be sitting on it and not actioning it. I thought they may have some duty of care to refund within a specified period.

tbs624

OP - are you certain that the LA scheme registered the T's deposit *and* provided the T with the scheme's prescribed information?

It could prove costly for you if not, as you are ultimately responsible as LL.
Have you personally spoken to your LA and confirmed that you agree to the deposit being released? Why did you not pass the rent refund direct to the T?

tbs624

topbargainhunter wrote: »

Sorry I don't have the name of the scheme to hand, but it's not online. I had to put in writing to the agent that the deposit could be refunded in full back in April. They appear to just be sitting on it and not actioning it. I thought they may have some duty of care to refund within a specified period.

This not visible when I started my own post.

What do you mean "it's not online"? DPS custodial , mydeposits, TDS were the original 3 schemes ( now joined by DPS insurance backed and an offering from Capita.)

Edited to add: is this LA voluntarily signed up to ARLA or similar?

topbargainhunter

Hi, yes I'm sure it's in the deposit scheme, as it should be. I think it's just that the LA are incompetent and don't care as they are no longer benefitting financially from the rent coming in.

Yes I have told the LA to release the deposit (1 month ago) and I refunded the rent to the LA because they have to pay back a chunk too as they deducted their Managment fee from the rent the tenant paid before giving it to me.

Does anyone know if the LA can keep messing the tenant about like this or do they have an obligation to refund within a certain length of time?

topbargainhunter

Yes they're in ARLA and I've just checked their website to find they use mydeposits.co.uk.

I think I better check my paperwork to see if I can log in to it myself, although I don't recall them ever sending me such information.

Anyway, I'm still looking for the answer to the original question, how long can they reasonably keep this deposit?

tbs624

Check with each if the schemes now that it *is* registered then encourage your T to follow the relevant scheme's procedures. The scheme websites give info on timescales. If there was no dispute over the deposit return then the LA should have returned the deposit within 10 days of the T requesting the deposit return.

Are you aware of the potential penalties if there has been no registration and/or no provision of that vital "prescribed info? T can pursue you to court and court can order you to pay a penalty of between 1 and 3 x deposit equivalent, plus return the deposit to the T. *You* would then need to pursue the LA to get the deposit monies paid back to you.

Check also your own contract with the LA and what exactly they are supposed to do on your behalf. If they fail to respond to your queries or to to provide you with specific info make a formal complaint and take it up with ARLA.

ValHaller

topbargainhunter wrote: »

Does anyone know if the LA can keep messing the tenant about like this or do they have an obligation to refund within a certain length of time?

Ultimately, if the LA messes the tenant around, they are doing it in your name - and the advice we would be giving your tenant is to sue YOU. The law will also hold YOU responsible for the failings of your Agent. So you will end up paying and you will be left to recover your losses from the Agent.

So what I would suggest is that you take the side of your tenant and you write to your agent demanding what the tenant could rightfully demand from you. Give them 7 days to inform you of the deposit scheme they used and to refund the tenant, after which you will refund the tenant yourself directly and take them to court to recover the monies they hold