Dispute with Tenant

[Deleted User]

ChampagneFever wrote: »

I wasnt aware of that. I had no information or advice to say it was a legal requirement.

I thought as long as i could prove that the money was held untouched in a separate account, then that would suffice.

If you're operating through a letting agent then they have certainly made a mistake by not explaining this to you, however it is ultimately your responsibility to make sure that your tenancy is conducted properly. Are you a member of a landlord association? There are some excellent posts in this forum about becoming a landlord, I believe they're stickied in this section, they're well worth a read.

The posts above are sort-of right, you can be taken to court and ordered to pay up to 3x the deposit, most likely if this did happen you would be looking at 1x the deposit, I think there's only been one case where a landlord was required to pay the 3x.

Any AST that commenced after 6 April 2007 must have the deposit protected with one of the government approved schemes, these schemes provide mediation with regards to deductions at the end of the tenancy and protect tenants money. More information is available here: https://www.gov.uk/tenancy-deposit-protection/overview

Personally I think that as your tenant has money issues, you have not met your legal obligations and you're coming out on top you should refund the full deposit (less any genuine deductions) as a gesture of good will. Chalk up the money "lost" as the cost of learning and thank your tenant for ensuring that you do your next tenancy properly That will save you any potential court action and give you the moral high ground.

CharlieRabbit01

ChampagneFever wrote: »

I wasnt aware of that. I had no information or advice to say it was a legal requirement.

I thought as long as i could prove that the money was held untouched in a separate account, then that would suffice.

but it wasn't held un-touched you have essentially used your tenants deposit to pay for carpets which should have been paid for by yourself (unless damaged by the tenant).

You should therefore pay the tenant the whole deposit back or as other posters have said your tenant can take the carpet with them.

ChampagneFever

I wasnt planning on letting the property when i bought it. I lived there for a bit but then lost my job. I asked mortgage lendor for permission to let, as i couldnt sell due to a high early repayment charge. So had no advice on how to let a property.

[Deleted User]

ChampagneFever wrote: »

I wasnt planning on letting the property when i bought it. I lived there for a bit but then lost my job. I asked mortgage lendor for permission to let, as i couldnt sell due to a high early repayment charge. So had no advice on how to let a property.

It's no big deal, make good on your obligations to your current tenant by taking the financial hit and returning the full deposit to them and then draw a line in the sand and become the perfect landlord in the future.

To become the perfect landlord you can start here with the post that will explain all about your obligations and considerations when becoming a landlord, it's a lot of work but it will make sure you don't fall foul of the law and your new tenants get a good tenancy.

Good luck!

Werdnal

Return the full deposit and let tenant go quietly! Rocking the boat will likely encourage them to take advice on their situation, and discover your ignorance of the deposit protection laws - meaning they could sue you for 1-3x the deposit value.

It would be a contentious issue if the tenant took this to court, whether the actual cause of the water entering the patio doors would be your responsibility or hers, so could go either way.

Beware though, that tenant can launch a deposit non-protection claim up to 6 years after the tenancy ends.

Check out the link above to see what else you may have forgotten, overlooked or been ignorant about. Some things may get you a slap on the wrist, whilst others like tax issues, lack of GSC etc, could result in a heavy fine! Do you homework if you are letting again and ensure you research everything first. The onus is on the landlord to find out the rules and regs and abide by them - in law, ignorance is not an excuse!

theartfullodger

ChampagneFever wrote: »

I wasnt planning on letting the property when i bought it. I lived there for a bit but then lost my job. I asked mortgage lendor for permission to let, as i couldnt sell due to a high early repayment charge. So had no advice on how to let a property.

Next time you decide to go into a new business area and to entrust a substantial asset (£100k+??) to a complete stranger many persons might consider it wise to TAKE SOME ADVICE, get some education and read some books on the subject.

If you think education is expensive try ignorance: Oooppss!! Perhaps you already did...

ognum

OP if you didn't know you have to protect the deposit did you know you have to pay tax on the rent you receive or has no one told you?