No deposit protection as helping out friends!

No deposit protection as helping out friends!

11:52 AM, 6th March 2015, About 8 years ago 19

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I am beginning to realise I was very foolish. I allowed a family who I was friends with to let my property way under the market value. We drafted a contract so that their children could be accepted at the local school.

It was agreed by both sides that the deposit did not need to go in to a deposit protection scheme and it was written into the contract that it would be deducted from the final rent payment.

Unfortunately I had to serve notice as needed to sell and this was when problems occurred. We gave 3 months notice and they refused to pay any further rent.

We have stuck to the law with all the other requirements but was nieve with the deposit. Just wanted to help out another family that were about to be homeless and save agents costs so we could give them lower rent.

They are due to leave very soon and have said they want their deposit back but as they have refused to pay rent and they have forgotten that we put in the contract that it would come off last month’s rent once they vacate where do they stand legally.

They broke a number of terms in their tenancy, sold items listed on inventory, damaged to property, undisclosed pets, redecorated to a poor finish without permission, they received £500 rent reduction in return for two jobs they were to carry out. One year on and they are still not done. I even allowed them to move in earlier than planned and gain entry weeks before their tenancy began so they could store items.

Their £1200 deposit is nothing compared to the £3000 that I am aware of that they will owe, it of course could be substantially more as there is a lot of contents.

I have since been scared about the deposit advice I have been given. If I get them out where do I stand legally. My loss is far greater than theirs would it be possible if they decided to pursue me that a court would rule in my favour.


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Neil Patterson

15:16 PM, 6th March 2015, About 8 years ago

Hi Alice,

It sounds like you are also going to need the tenant eviction specialist Landlord Action owned by Paul Shamplina as this is going south quickly.

See >>

Alice Ambrose

15:19 PM, 6th March 2015, About 8 years ago

First page of contract main terms point 3.

The tenant shall pay x amount as deposit upon receipt of keys for x property.
This deposit shall be deducted from final rent payment, subject to the possible deductions set out in this agreement.

the tenant hereby confirms that:

a i) the deposit been paid by the tenant and not a third party.
ii) not relevant

b) he has the authority to enter into negotiations in order to agree the settlement of the deposit at the end of the tenancy and any monies due may be repaid to him. unless otherwise advised in writing that the deposit or any balance of the deposit should be paid to another party.

Alice Ambrose

15:27 PM, 6th March 2015, About 8 years ago

Reply to the comment left by "Neil Patterson" at "06/03/2015 - 15:16":


I physically do not have the money, at the moment I am falling into £700 a month arrears unless I borrow, borrow, borrow until they are out and I finally sell.

They have refused entry for some of the estate agent viewings and the house was not presented well when it first went on the market so there is no interest. Very much stuck until I find money from a money tree otherwise I would happily pay for a legal whiz to tie them up in knots and punish them for this despicable behaviour. They know I have two young children to feed.

Elizabeth Bax

15:40 PM, 6th March 2015, About 8 years ago

Sorry I understood it as the final rent being deducted (paid) from the 'deposit' so two months' rent paid in advance - in which case it is forward rent. I managed to work it that way with one tenant when I forgot to protect a deposit. I'd say keep your head down and concentrate on having all your paperwork in good order in case you need it, I've had various threats by tenants over the years, all without any foundation but generally because of dissatisfaction with their own lives and it's never come to anything except to give me sleepless nights and anxiety and their lives are infinitely worse to be doing this. They are wrong, it's a horrible situation, but it'll pass, the penalties for the deposit protection are not a mandatory x 3, a judge can 'take a view'.

David Griffith

18:01 PM, 6th March 2015, About 8 years ago

I am sorry to hear about your terrible situation but please, please find a way of getting some proper help with this.

My worry is that they will not move out at the end of the month. I am guessing you only have a verbal agreement that they will.

Londoner 43

19:17 PM, 6th March 2015, About 8 years ago

In the future, the easiest way to protect the deposit is to pay a small insurance premium to My Deposits, and keep the funds in your bank account. I know it does not help you now, but it is very easy to protect the deposit and if need be, you can "borrow" the funds, as long as you have the money when you need to return the deposit.

brian clement

0:48 AM, 7th March 2015, About 8 years ago

Hello Alice. Give her a cheque for the return of her deposit. Get her to sign a receipt for this return of her deposit. Then, ask for the cheque back as part payment of the owing rent. Give her a receipt for this payment. Then get her out, cut your losses and get your house sold. Just incase she doesn't give you your cheque back, make sure there's no money in your bank account so the cheque will bounce. Once she's gone you can get your life back to normal and this nightmare will just be a bad memory. Brian.

Emerald Legal

10:40 AM, 7th March 2015, About 8 years ago

Beware of the cheque rule! You could be sued for that instead once a cheque is presented but not honoured!

brian clement

0:50 AM, 8th March 2015, About 8 years ago

Hello Emerald Legal. Your comment "beware of the cheque rule" is something I am unaware of ! Please explain to me how it you can be sued. People often bounce cheques on me. Thanks.

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