Tenant claiming deposit paid to agent who went bust 6 years ago?Make Text Bigger
In July 2006, I bought a 2 bedroom flat and leased it out to a company called London Housing Solutions (LHS). This company was featured on channel 4 in 2013. They sub let it and paid me a guaranteed rent each month in arrears. I did not receive a deposit. In 2012, the company went bust owing me several months unpaid rent.
I approached the existing tenant and we signed a new tenancy agreement in 2013, I did not receive a deposit from this tenant. Part of the tenant’s rent was paid for by the council and the tenant paid the rest.
Fast forward to 2018 and the council has reduced the award they pay towards the rent and the tenant is now accumulating roughly £150 arrears every month. The tenant is refusing to make up the difference in rent and has now claimed that she paid a deposit in 2006 and she has provided me with a copy of the tenancy agreement which mentions the £500 deposit.
She is now asking me to take the £500 deposit into account and deduct it from her arrears. Even if I deduct this, it will only postpone the inevitable arrears increase.
I’m very reluctant to do this as I didn’t receive it and I wasn’t her landlord at the time. In light of all the new regulations, I need some advice on what my position is and what is best to do as I intend to evict this tenant using a section 8 once her arrears are in excess of 2 months.
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