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propertylawyer
propertylawyer, Solicitor
Category: Law
Satisfied Customers: 280
Experience:  Property Solicitor with expertise in commercial and residential property transactions.
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I have tenants that came from London, the London council

Resolved Question:

I have tenants that came from London, the London council payed the first months rent and me an insentive to take them at a reduced rent. The first months rent was in advance and the present council was supposed to then pay the rent. Once this was done the first months rent of £700 would then have gone into the tenancy deposit scheme, however the present council Have never caught up with the rent as they pay it in arrears. This means I have never put the first £700 into the deposit scheme. They now want to move out but both the tenants and the council are saying they should get their deposit back. I have bank statements showing how I have only ever recieved enough money to cover the rent and not for the deposit. Council won't speak to me and nether will my tenants. Tenants are now saying that they will not pay I need to take them to court.. All seeming very messy.. Any advice?
Submitted: 11 months ago.
Category: Law
Expert:  propertylawyer replied 11 months ago.

Do you have any written agreement with the council regarding this?

But clearly you can demonstrate by bank statements what you have actually received - have you shown this evidence to the council to establish that a deposit or a months rent has not been paid.

I must make you aware of a potential banana skin. If a landlord fails to register a deposit with the tenancy deposit scheme it can be sued for 1 to 3 times the value of the deposit. I am not sure based on the above if you have registered the deposit as you never actually received it. Potentially you could be sued by the tenant. Of course this is if they claim that a deposit was in fact paid to you.

Customer: replied 11 months ago.
The council won't speak to me about the tenants or what the tenants have said to them, I have printed out my bank statements and given them to the tenants to show them why I am saying what I am saying and they still disagree but won't provide me with their statements to either disprove or back up what I am saying. The council have just said that they are always payed the rent and that the tenants are not in arrears and have a deposit. Would I be better off putting the £700 in the deposit scheme and then claiming for a months rent when I guess I take them to court as they will not move out unless I do.
Expert:  propertylawyer replied 11 months ago.

The issue with registering the deposit late still leaves you exposed to a potential claim. It has to be registered within 30 days of the start of the tenancy.

Furthermore because the deposit has not been registered or if you register late then you cannot evict the tenant using the s.21 notice. It will be invalid. You will have to go to court to evict the tenant. The second issue is that you have to refund the deposit before you evict, otherwise it is invalid.

You can register the deposit late. You are still exposed to a potential claim. Give details to the tenant.

The council pays in arrears. Does this mean they will pay at the end of the tenancy for the last month

Customer: replied 11 months ago.
the council pays in arrears but my tenants are paying me in arrears also even though the first month was paid ahead as after the initial first payment there was a gap of two months with no payment so now every month they pay me on the 28th for the month just gone. So you would have to refund the deposit even if they were behind on rent or the property was damaged?
Expert:  propertylawyer replied 11 months ago.

Not normally but you do when it has not been registered.

Customer: replied 11 months ago.
But I don't have a deposit to register from them. Is not having a deposit an issue in itself?
Expert:  propertylawyer replied 11 months ago.

Their claim is that you do. Now it would be a case of the court, if it went that far, to establish whether or not it was paid.

It is too late to take the stance that there was no deposit and never asked for one, unless you have actually never asked for a deposit or at least not in writing.

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