Need help with landlord re tenancy deposits

Mferguson23

This is a long one but wondering if anyone can help: 

Myself and three friends moved into a house 3 years ago. Joint tenancy, total deposit £800. After two years 2 of the tenants moved out. We found replacements and sent the landlord their details to issue new contracts. The contracts were never sent out and the two tenants who left did not get their deposits back. We learned he had not protected the deposits and he refused to give us the information when we requested it. 

A month ago one of the tenants had an issue with the fire alarm in her room. She’d changed the batteries and tried fixing it herself but the beeping wouldn’t stop. She asked the landlord to fix it. He replied “move out”. She did (she was one of the tenants who wasn’t issued a contract).

When she moved out he begged to have her back in the house. When she refused he told us the rest of us remaining in the house were liable for the rent. After some discussion we reached an agreement with the landlord: we would not be liable for the share of the rent for the person who left and he would use the deposit he was holding to pay for our last months rent as we had handed in our months notice to leave. I have this agreement in writing from texts back and forward between myself and the landlord. 

Here’s where the issue comes in. One of the tenants has accidentally sent the last months rent to the landlord. When he called explaining his mistake the landlord said he would return the money on the condition that the house was left in a satisfactory condition. He agreed on the phone that he hadnt asked for the money and it was sent by mistake but still was going to hold on to it conditionally.

So now the landlord is holding £1000 for a house with an initial deposit of £800. He is trying to say the fact the tenant called asking for the money back gives him reason to believe that we will deliberately leave the house in a state. 

Not only is he holding on to the extra money he is attempting to go back on the agreement and is now threatening legal action for rent arrears. I reminded him that the deposit was not protected, that we may be able to claim 3x the initial amount and had the council email him to remind this. 

He seemed confused by the wording of the council letter which told him to pay us the full deposit back as it was being held illegally. He even offered to return the money through a “trusted estate agent” who would decide on whether the money should be returned or not by inspecting the property at the end of the tenancy. I reminded him that this was the purpose of the tenancy deposit schemes, but it fell on deaf ears. 

So now he is contacting his solicitors and it looks like we will have to do the same. 

I’m generally just looking for opinions from people as to where you think the case will go if it does go to court. And any advice for us as the tenants would be great. 

rik111

You do not need to contact a solicitor. The case is clear and his solicitor has no way to defend it, he broke the law by not protecting the deposit, end of story. 
Write to him without prejudice you will take no further action if the £1000.00 mistakenly paid is immediately returned, otherwise in 7 days you start proceedings against him for non protection of deposit plus the £1000.00 over payment. Make it clear this is your one and only offer and if not accepted you will be going to court as it will be a nice little pay day for you. 

Mferguson23

Just to clarify it was a one off payment of £200 sent to the landlord by mistake by one tenant. Bringing the total held by him to £1000. 

Previous to this we had discussed not being liable for the share of rent for the tenant he told to move out. I asked him next day for details of tenancy deposit scheme. 

He replied: Y are you worrying about your deposit scheme when you’re staying in the house for the next month without paying rent 

My response was: Oh I thought we were still paying rent, just not Xxxx’s share? If that’s the case don’t worry about the deposit as you’re using it as the last months rent 
 

Would that stand as evidence?