Tenants haven't paid the deposit and refuse to do so

Annisele

Jimmygg7 said:

I explained to them the reasoning behind the deposit in lengthy emails, how it protects both sides and it's secured by a third party and gave them tips on how to leave the property come the end of the tenancy to guarantee they will get it back.

I'm struggling to see how the deposit protects the tenants. How is it better for the tenants to pay money now rather than at the end of the tenancy - especially as they'd only have to pay anything at the end if they'd damaged something/breached the contract somehow.

From a practical point of view, you want them out and they're far more likely to go if you give them the reference they want.

If you wanted you could include in the reference "they didn't pay a deposit, I didn't chase them for ages and then they woudn't pay" - but that wouldn't hurt the tenants, and might just make you look a bit silly.

housebuyer143

Jimmygg7 said:

housebuyer143 said:

It's taken you a year almost to realise you have no deposit, and now you are expecting them to give it to you, so you can literally inspect the property in the next month or two and then probably make deductions. 
Look at it from their point of view, of course they don't want to pay it. The last loan payment was probably received more than a month ago and they must likely have spent it so don't have it.

This is partly your fault for not doing your diligence earlier. Give them the reference or they might trash the house on purpose in order to make a similar point.  

Sorry, where is this BS coming from? It's taken me 3 months to realize it, not a year and "probably make deductions" make no sense. These comments don't help much, I've previously elaborated on them.

I accept I did assume being students they moved in last summer, so that's my error. 
I'm not saying you will make deductions but the tenants certainly will assume that's your plan, and so of course will be reluctant to pay it over to you. They seem to be wanting to leave by asking for a reference so they are probably thinking the payment of the deposit now doesn't make any sense. At this stage they definitely will get no deductions, if they pay you the money then that isn't a guarantee.

Gavin83

I think people are being harsh on you here and frankly your tenants are as much to blame as you are. However you are both to blame and I think you need to pick your battles.

Did they have guarantors? How much longer are they there for?

Ultimately the deposit is there to provide you some remedy against damage. I think pretending them paying you a deposit is to their benefit is just insulting their intelligence. I also think you need to consider that attempting to now recover this deposit will likely be more difficult than recovering money for any potential damage.

Personally in your shoes I’d apologise for the mix up and your response so far, tell them that there’s little point worrying about the deposit now and that you’re happy to provide a reference should the house be returned in a reasonable state. Don’t sour the relations.

If they have caused damage then ask them or their guarantors to pay for it. If they refuse then take them to court. Forget the deposit though.

macman

Even if they did pay the deposit now, then they'd probably simply fail to make the final rental payment due in August anyway, and be gone long before you could start to seek possession. So this is simply a futile battle that you cannot win.
Next time do not hand over the keys until the deposit is received and all the paperwork processed.

Jimmygg7

Annisele said:

Jimmygg7 said:

I explained to them the reasoning behind the deposit in lengthy emails, how it protects both sides and it's secured by a third party and gave them tips on how to leave the property come the end of the tenancy to guarantee they will get it back.

I'm struggling to see how the deposit protects the tenants. How is it better for the tenants to pay money now rather than at the end of the tenancy - especially as they'd only have to pay anything at the end if they'd damaged something/breached the contract somehow.

From a practical point of view, you want them out and they're far more likely to go if you give them the reference they want.

If you wanted you could include in the reference "they didn't pay a deposit, I didn't chase them for ages and then they woudn't pay" - but that wouldn't hurt the tenants, and might just make you look a bit silly.

It protects them, because, without an adjudicator in place from TDS, the LL can prosecute the tenants personally for virtually anything that he thinks needs to be remedied. Technically, if they paid anything that they damage/cleaned, or pay a deposit, is the same thing. Securing a deposit adds an extra layer of protection for the tenants and the LL.

deannagone

just as with a deposit, the LL can claim for anything but will have to provide evidence, and could get costs awarded against them if the case is not found in their favour  etc.  It mainly adds protection for the LL.  I'm just trying to get you to see the reality to help you encourage the tenants to leave the place in good order.

Put this down as a learning experience, you'll never miss having proof of deposit again!  It might be a good idea to do a bit more reading about the responsibilities and risks of being a LL.  And possibly change your LA as there seems to be a communication problem of some sort.

Are there guarantors?

doodling

Hi,

Jimmygg7 said:

Annisele said:

Jimmygg7 said:

I explained to them the reasoning behind the deposit in lengthy emails, how it protects both sides and it's secured by a third party and gave them tips on how to leave the property come the end of the tenancy to guarantee they will get it back.

I'm struggling to see how the deposit protects the tenants. How is it better for the tenants to pay money now rather than at the end of the tenancy - especially as they'd only have to pay anything at the end if they'd damaged something/breached the contract somehow.

From a practical point of view, you want them out and they're far more likely to go if you give them the reference they want.

If you wanted you could include in the reference "they didn't pay a deposit, I didn't chase them for ages and then they woudn't pay" - but that wouldn't hurt the tenants, and might just make you look a bit silly.

It protects them, because, without an adjudicator in place from TDS, the LL can prosecute the tenants personally for virtually anything that he thinks needs to be remedied. Technically, if they paid anything that they damage/cleaned, or pay a deposit, is the same thing. Securing a deposit adds an extra layer of protection for the tenants and the LL.

You are completely wrong.  There would be nothing stopping a landlord from returning a deposit then pursuing a tenant through the courts for any losses.  No sane landlord would of course but that option is open to them.

The only benefit of the deposit is to the landlord, the reason deposit protection schemes exist was to stop landlords abusing that benefit, not to add an additional layer of protection to the tenants as well.

propertyrental

Jimmygg7 said:

Annisele said:

Jimmygg7 said:

I explained to them the reasoning behind the deposit in lengthy emails, how it protects both sides and it's secured by a third party and gave them tips on how to leave the property come the end of the tenancy to guarantee they will get it back.

I'm struggling to see how the deposit protects the tenants. How is it better for the tenants to pay money now rather than at the end of the tenancy - especially as they'd only have to pay anything at the end if they'd damaged something/breached the contract somehow.

From a practical point of view, you want them out and they're far more likely to go if you give them the reference they want.

If you wanted you could include in the reference "they didn't pay a deposit, I didn't chase them for ages and then they woudn't pay" - but that wouldn't hurt the tenants, and might just make you look a bit silly.

It protects them, because, without an adjudicator in place from TDS, the LL can prosecute the tenants personally for virtually anything that he thinks needs to be remedied. Technically, if they paid anything that they damage/cleaned, or pay a deposit, is the same thing. Securing a deposit adds an extra layer of protection for the tenants and the LL.

The LL can prosecute in this way whether a deposit is paid or not. The damages the LL claims may exceed the deposit.

And use of the TDS adjudicator is dependant on both sides agreeing to adudication.....

Protection of the deposit in a scheme does indeed provide tenants with protection - but only if they've paid a deposit.

Paying a deposit (as opposed to not paying one) adds nothing from the tenant's point of view.

Just accept that there is no deposit, learn the lesson (payment in advance of tenancy), and move on.

theartfullodger

Deposit PROTECTION SCHEMEs protect tenants from greedy landlords who for years and years ripped off tenants before the schemes came in.

lookstraightahead

If these tenants are anything like my DD was when she was at uni, by May she was living off a diet of worms and stealing my shampoo. There's no money left by this time of year.