Bankrupt tenant allowed to keep deposit despite arrears?

by Readers Question

9:36 AM, 16th March 2017
About 4 years ago

Bankrupt tenant allowed to keep deposit despite arrears?

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Bankrupt tenant allowed to keep deposit despite arrears?

I have a tenant who (thankfully) vacated last weekend, owing two months unpaid rent , and left the flat in a terrible mess.

Three days later the whisky bottles and fag-ends have been cleared, and we are beginning to see carpet, and the inside of fridges and ovens.

Anyway, their deposit covered about six weeks of rent, so we are already out of pocket, before even starting to pay for the repairs and cleaning.

The agents initially reported that the tenant was going to sign over the deposit to us, so better than nothing, but now the tenant, having been declared bankrupt about a month ago, thinks he is entitled to keep his deposit, or use it to offset against other debts etc.

Can anyone clarify whether this is true.? If so it would seem to be yet another unbelievably unfair piece of legislation hammering landlords.

Many thanks

Ian



Comments

Ian Narbeth

11:48 AM, 20th March 2017
About 4 years ago

Reply to the comment left by "DALE ROBERTS" at "20/03/2017 - 11:25":

Hi Dale
Sorry to hear about your horror story. Have you thought about going to the police, along with the other defrauded landlord? If the police will not take the matter up then you might consider a private prosecution for the false statements made by the tenant and possibly for criminal damage.

DALE ROBERTS

14:31 PM, 20th March 2017
About 4 years ago

Reply to the comment left by "Ian Narbeth" at "20/03/2017 - 11:48":

I have been fighting this situation for almost three years. The police did a very neat side shuffle of evasion, my managing agents have advised that according to their experience I would not win this case in court and this is compounded by the fact that I am a non resident UK BTL investor.
This lease expires in October. It appears that the quickest, cheapest and cleanest method of ridding myself of this tenant is to wait it out and hope my property withstands the neglect. She ensures her rental arrears are under the two months sum and I know she will ensure this is the status quo until she leaves.
The more I can disseminate that I have uploaded her details on Landlord Referencing the more I can ensure other landlords don't "inherit" her.
Thank you for your kind response. I appreciate it.

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