Renting and return of deposit

Cardinal-Red · 11 August 2005 at 11:19PM

Hi everyone,

This might not be the right place to ask this, but here goes.

Back in late 2004 my partner and I rented a flat through a letting agent, though they didn't manage the property. We paid a deposit of £1390 (2 months' rent), by cheque, to the letting agents. They passed the money on in its entirety to the property owner and landlord.

Am sure you can see where this is going - the flat has been repossessed by the mortgage company, and the landlord has gone missing. When we do get him on the phone, he immediately hangs up when he recognises our voices.

The letting agent today told me that it has nothing to do with them as they only acted in finding a tenant, and do not hold client's money in those circumstances. The manager said (in error) that it was made clear at the time that the deposit would be handed over to the landlord. However, even if this was made clear at the time, we'd have paid the deposit over anyway.

So my question is: can the letting agents wash their hands of this, despite me paying the money to them? Do they have no responsibility at all?

Thanks!

competitionscafe · 12 August 2005 at 1:50AM

I would contact your nearest CAB (Citizens advice bureau) for advice.

Bossyboots · 12 August 2005 at 6:34AM

Your agreement is with the landlord, not the estate agent. The estate agent was working for the landlord. They were only acting as money handlers and are not responsible for the actions of the landlord. I am not sure they would even have any liability if it was a managed let or be able to return the deposit to you without the landlord's say so.

Could you ask the estate agents as a gesture of goodwill, to at least try telephoning him themselves to see if he will speak to them?

I know when my son rented a non-managed flat, once the keys had been handed over the agents didn't want to know.

november · 12 August 2005 at 7:58AM

Unfortunately I agree with bossyboots. The letting agents weren't managing the property and didn't hold the deposit - the landlord did and does.

Have you left the flat? You wouldn't normally have your deposit returned until after you have left and an inspection should be made against the inventory.

Does your tenancy agreement say it is between you and the landlord?

Do you have an address for the landlord (you are entitled to one in law which should have been passed to you by the letting agency if they were the ones who attended the tenancy sign up)? I would stop phoning him and write instead. If you have left and returned the keys its a bit late but if not take some photos of the condition of the place just in case and preferably get an independant witness to view it if you think he won't come round to do an inspection. If he hasn't mentioned it write to him and ask when he is coming round to do an inspection and that as the place is in the same condition as it was when you moved in you look forward to the return of your deposit on such a date (just after you are due to leave). If you think he is going to be difficult it is better to prepare now in case you have to take him to the small claims court.

Also good advice about CAB. Go to see them if you think you are going to have problems getting your deposit back although they will probably advise you that you will need to take the landlord to the small claims court if he doesn't return it after you leave.

Cardinal-Red · 12 August 2005 at 12:43PM

Hi thanks for the advice.

The contract is indeed between myself and my landlord, but I was wondering whether the agent's attitude of 'it has nothing to do with me' was really sustainable. He told me (then quickly changed his story when I asked him to explain) that 'several people per year' fail to get their deposits back from let-only agreements through his agency.

As for inspections etc, you'll need to understand the exact circumstances of the end of the tenancy actually. It was due to end on 28th June but completion on our home was delayed so we asked, pending new tenants, to stay in the flat for a couple of weeks for a pro-rata rent. The landlord agreed then asked for cash up front rather than at the end of the period. Then we were contacted by baliffs who were taking possession of the property on the day before our actual lease ended. As such we had to move our stuff into storage and live in a hotel for a couple of weeks. Therefore no inspection per se took place, because the locks were changed etc.

Anyway thanks for the help...

november · 12 August 2005 at 12:50PM

If no inspection took place then I would write and request the return of your deposit (send it registered so he can't say he hasn't got it). Its then up to you if you take him to the small claims court for its return if he doesn't send it.

Mind you if he has been repossessed he probably hasn't got any money so the best you would get if the claims court found in your favour is payments

Sorry can't say anything more useful

bunking_off · 13 August 2005 at 5:19PM

Is the letting agent a member of ARLA? If so, it might be worth involving them because their code of practise states;

>>
A Member Firm must ensure that any tenancy agreement drafted includes a
clause that specifies how and by whom the tenancy deposit bond is to be
held (see clauses V and VI below plus section O clauses VI and VII), and
whether interest is to be paid or not. It should include some information on
how the tenancy deposit bond will be dealt with at the end of tenancy and
the circumstances or criteria or procedure in which it will be refunded.

ARLA recommends that, for the protection of the tenancy deposit bond and
to help facilitate its fair and equitable disbursement at the end of the
tenancy, a Member Firm should hold the deposit on behalf of the parties for
the duration of the tenancy, as Stakeholder.
>>>

The second bit is best practise, but the first bit appears binding on members to me...

Bossyboots · 13 August 2005 at 6:20PM

This only puts an onus on the agent to ensure that there is an adequate clause in the tenancy agreement. That agreement will be between the landlord and tenant and does not put any responsibility on the agent with regard to the actual deposit repayment.

When my son rented, there was a perfectly adequate clause in the tenancy agreement relating to return of the deposit but it would have been no good if the landlord had disappeared.

Looking at it from the landlord's side, the agents used who found the previous tenant for my son's flat returned the full deposit without doing a proper checkout. There was a considerable amount of work needed to be done, it was not clean and several bills had not been paid. It was understandable that the landlord decided to hold deposits himself after that.

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Renting and return of deposit

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