ex tenants deposit claim

[mobbsy30]

Hi,

On Wednesday I received a letter from a solicitor stating that an ex tenant has made a claim for an unprotected deposit, they are asking for 3600 pounds which they say is made up of 480 (the initial deposit) plus 3 times the deposit as a penalty, for the initial tenancy and the same again for the second count. They are claiming that when the tenancy rolled over to a periodic tenancy they can claim this again.

I believe this figure to be 3840 pounds.

The tenant left in November 2016 owing me approximately the same figure in rent, she left no forwarding address and disappeared abandoning her daughter.

After the initial letter I phoned the solicitor and offered to return the deposit but no more, after their refusal I became annoyed and hung up saying 'well take me to court then'. My wife since phoned them and offered 2000 to settle, although I was reluctant. Having added up what she owes and thinking about it for a few days I think that I would be better going to court as from what I have read the likely penalty is repay the deposit plus one times penalty.

Does anybody have any experience with this stuff and how these cases go once at court, any help would be appreciated,

thanks

[mobbsy30]

no I didn't, more fool me.

[mobbsy30]

I know that I should have put the deposit in a scheme but even though she left owing rent I was happy for her to be out and to leave it there. What annoys me most is that she never even asked for her deposit back and never told anyone where she was going. I will struggle to afford a solicitor and she will obviously get legal aid. I am wondering if I should make my case as well as I can myself and risk court, or settle, (which will require me to borrow money anyway).

[mobbsy30]

I've just added up what she owes, this includes counting the initial payment as rent and it comes to 3690 pounds, although her ex partner did make some cash payments to top it up although I don't think they will add up to much.

so if she is successful and gets awarded her 3840, and I can prove that she owes me 3400 say, I assume it would be me who would be liable for court costs, does anybody know what that would total? is it a fixed price or would I be liable for her legal fees?

[mobbsy30]

she has a solicitor working for her now, I assume this is either on legal aid or a no win no fee basis, but I don't know for sure.

I believe the tenancy rolled on, at least that is what she is claiming, I can't remember to be fair and I'm at work now so would have to go home to check.

I didn't protect the deposit because I am an idiot it seems, at the time I didn't know much about the schemes and it seemed like an extra pain in the arse. I have previously had tenants leave having caused damage or owing me money and to be honest I have generally returned the deposit as I have just been glad to get rid of bad tenants.

She was to be fair not a bad tenant for most of the time, I was keen to keep on top of the house so any issues were dealt with pretty sharpish. We were never too bothered if she was a bit late paying her rent, and we even gave her some stuff for her eldest son, clothes etc. to help her out. She then started taking drugs again and that was when she left her partner and did a moonlight flit with some guy.

She was in such a rush to leave that she didn't take her 1 year old daughter with her.

I know I should have protected the deposit but surely this law is designed to protect good tenants from bad landlords. When this is resolved the house will be sold as I have had enough now of people constantly taking the piss.

I feel like a mug and whilst I understand my wifes position of, just settle and get rid of the problem, I can't help feeling that I should fight my corner, although obviously I have committed the offence.

[mobbsy30]

Sorry the 2K was offered by my wife, they have accepted it although the claim is against me.

I now intend to cancel that offer as they got no authority from me.

this shouldn't be an issue should it as I haven't agreed, it was my wife who made the offer

[mobbsy30]

Thanks for the advice everybody, its been really helpful to hear that others think this would be worth contesting.

My plan of action now is to

contact solicitor and offer 650 pound or so (deposit plus good will gesture)

if this is rejected, let them start court proceedings and enter a counterclaim for the rent owed.

Try and agree to settle before court for less that 1000 pounds, if not accepted, go to court and take my chances,

This sounds more reasonable to me

[mobbsy30]

forgot to add on my plan,

bk wife, (she was just trying to help)

sell house give up being a landlord.

[mobbsy30]

I think that sounds reasonable,

I have never been so annoyed about something in my entire life, I can't believe they are demanding 3K in compensation when actually she didn't suffer any loss, had the deposit been protected, she wouldn't have got it back anyway.

thanks again for the advice, I feel much better about it now.

I assume I should send this cheque to the solicitor, not her directly

[mobbsy30]

I agree that that the days, well certainly my days of being an amateur landlord are over. My own naivety and trust in people has been shattered and I won't be going down this road again. I have made a mistake and I admit it, but the tenant also did not fulfil the terms of the tenancy.

I would not object so much if the penalty were a fine to be paid into the public purse, but I do object to paying somebody who already owes me thousands more money than I have to.

I didn't pursue her for the money, as I had no forwarding address and I would be unlikely to get my money, even if I managed to get a CCJ against her.

I think that this will be the next great compensation scam for these claims firms and I think that things like this will drive smaller/amateur landlords out of the market and eventually push rents up as bigger companies come in.

Lets not forget that this tenant would probably not have passed a credit check or had references, she was getting a bigger house than her housing benefit would have paid for.

[mobbsy30]

Alucidnation said:

What happened to all the rental money from the tenancy?

well her payments were around 3500 less than the rent. but the rest of it went on. gas safety checks, a new boiler, various remedial works, the mortgage, my tax bill, insurance, where do you think it went?

[mobbsy30]

alfie2244 said:

Until he has to show how and where it was registered, as per the law requires...then what?

there can be no 'defence' as such, all I am trying to do is justify a reduction in the penalty which seems excessive.

lets not forget, she hasn't actually suffered a loss, so what is there to compensate?

deposit was 480

she leaves owing ~3500 in unpaid rent which I didn't pursue, then 11months later demands 3600 from me in compensation, unreal.

As I said before I admit my fault in this and am not trying to justify not protecting her deposit.

[mobbsy30]

Thermobaric said:

How is the deposit so low? That can't have been worked out properly. Not for a house surely?

it was one months rent

[mobbsy30]

alfie2244 said:

Dear Sir

I fully accept that I failed to protect the deposit (£480) as legally required and understand the possible penalty for this failure could be 3x this amount so I offer you client £1440 accordingly.

You should also be aware that your client failed to pay the full amount of rent monies payable under the terms of the legally binding contract between us. The shortfall being the sum of £3,580.

I therefore look forward to receiving you client's payment of £2,140 in full and final settlement of this matter.

I really wish this would work, would it?

[mobbsy30]

September 2014, no inventory to speak of, house is unfurnished and needed decoration when she moved in, but she knew this, and to be fair she approached me (she lived opposite and knew that the houses on the other side of the road had longer gardens, and also that the previous tenant had moved out)

house was rented cheaper to her on the basis that if I paid for materials etc. she would sort decoration and she could do it how she wanted it. So I wouldn't dispute anything there.

[mobbsy30]

Alucidnation said:

You're right.

Being a landlord isn't for you.

most of the replies I've had have been very helpful, yours are not

[mobbsy30]

Thanks again for all the helpful replies, I have drafted a letter which I will send to the solicitor along with a statement of arrears.

the letter basically says that, I apologise to them for my failure to protect the deposit and that I am willing to return to them the deposit and pay them the maximum penalty amount minus the arrears in full and final settlement . This rather neatly comes to the original deposit amount plus £50. I will enclose a cheque for that amount and hopefully the solicitor (who I doubt is aware of the arrears) will take one look and think that it isn't worth going to court over. Although I suspect they will try to up the amount.

However if I know her, she won't be able to turn down money now, on the basis of possibly getting more money later.

updates to come when I hear more.