Help! Issues with a deposit!

Teri45

I don't know where I stand with this to be honest. I've been a bit silly and I am looking for some advice.

I privately let my flat last year and my tenant gave 2 months notice to say they were leaving. I allowed the tenant to leave a month early and thought that would be the end of it, but they messed me about a bit on handover day. I left it but I then got an email asking about deposit deductions a month or so after they moved out. I responded with a number of things to suggest that what I intended to deduct outweighed the deposit hoping they would call it quits. Stupid I know, as I hadn't protected the deposit.

The tenant has now caught on to the fact I didn't protect the deposit and I admitted it in the email reply (I know!).. I returned the deposit, begrudgingly to be honest, in full. I've now received a 'without prejudice' letter advising me that they will be pursuing compensation but have offered me the opportunity to offer a reasonable settlement figure.

What should I do? Whats my best option? If I plead ignorance of the law as this is my first and only let, am I likely to get away with it as I've paid the deposit back?

rtho782

You have broken the law and are liable. There is no defence if you end up in court. You might feel you have been wronged by the tenant but they have not acted criminally towards you.

Ignorance of the law is absolutely no excuse. How would you feel if you went to a restaurant and got food poisoning, but the chef said "It's not my fault, I didn't know I was supposed to wash my utensils and keep beef and chicken separately!"

LandyAndy

What are they seeking compensation for? What is their loss? They have had their deposit returned in full.

rtho782

LandyAndy wrote: »

What are they seeking compensation for? What is their loss? They have had their deposit returned in full.

It's not compensation. It's a penalty for breaking the law.

landlords who fail to protect the deposit or give the prescribed information within 30 days of receipt will be liable to pay the tenant between 1 and 3 times the deposit as a financial penalty

Teri45

Ok, so is there anything I can do? Is it advisable to settle in that case?

They're also now saying that I didn't provide any documents, Energy certificate etc

I guess I just am trying to minimise the cost really

Fosterdog

Make them an offer but make sure when you do finally agree on a settlement sum you declare it as full and final settlement and list what it is settlement for otherwise they could still claim against you, they could say the payment was for something else or only part settlement and you'll have no proof otherwise.

Other than that you'll get no sympathy for being a bad landlord and acting illegally, ignorance is not an excuse, you chose to let out your property so it's your responsibility to learn the relevant laws and rules.

Teri45

Is there any guideline on whats a reasonable offer? would less than 1x work do you think?

HB58

Bearing in mind that the penalty is set at x1 to x3, I think offering less than x1 would be a little shortsighted.

Fosterdog

Only a judge can decide what's reasonable for your exact circumstances. Considering the minimum they can claim by law is 1x the deposit and they have already said they want more I doubt they would accept less than 1x, it's up to you how high you are willing to go with an offer and up to them how low they are willing to accept. Best case for you it will be 1x and no court costs on top, worst case it will be 3x with court costs on top.

macman

So you didn't supply any documents? No deposit protection, no EPG? Did you check his immigration status? Was the letting licensed with the LA (if required by your LA)?
Yes, the tenant is obviously exploiting the situation, but I would be surprised if he settled out of court for less than twice the deposit.
If the property required a gas safety certificate (which it did if there were any gas appliances), then did you provide one? If not, then I really hope that the tenant doesn't pick up on that as well, as it's a criminal offence with a potentially unlimited fine or imprisonment, should he choose to report it as part of his 'negotiations'.
You really don't have a leg to stand on here: all you can do is minimise the damage.

Teri45

I didnt provide an EPC but I did have a gas safety check done about half way through the tenancy. I didnt give them a copy of the one in place when they moved in. I didn't use any agent, I just did it myself, which in retrospect seems to have been stupid.

I just advertised on openrent and went from there.

The deposit was £600, so I'm looking at £1800 if they go for 3x? Is it likely to be 3x given that I haven't given other details?