Deposit stolen by agent and I do not want to renew ASTMake Text Bigger
I have a serious potential headache and would welcome your advice. In July 2009 I rented a house to a married couple and their family.
The agents took the deposit (788 pounds) and placed it with My Deposits.Co . The agents subsequently closed down and stole the money. This happened in 2011. I contacted the police and trading standards at the time, but with no success.
The tenants have been in the property ever since paying the due rent. In February 2015 they signed another tenancy agreement which is due to expire on the 9th February 2016.
At the beginning of September I was informed by the husband that he had left the house after a split with his wife and that she was now responsible for the payment of the full rent (560 pounds). He cannot be contacted other than by phone. However I know where he works.
I wish to end the tenancy and for the remaining tenant (the wife and her two children) to move out when the current tenancy expires. I have however agreed to her paying me via Housing Benefit in the meanwhile until February 2016 . This however leaves me 77 pounds short PCM. Better than nothing I suppose.
I wish to serve a Section 21 Notice but the problem is what about the missing Deposit money? Should I pay this into the DPS from my own pocket or hand it over to the tenant with proof of transfer . I have been told a Section 21 cannot be served unless the Deposit is protected or handed over to the tenant .
The later option is not something I would prefer for obvious reasons to do with damage to the property etc. Although the tenant has indicated she is willing to move she may become awkward if she cannot find suitable housing on HB and will end up going to the Council. I am of the opinion that if I put the Deposit into the DPS she would have suffered to tangible detriment should this go to court for repossession proceedings.
Your advice would be much appreciated.
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