Rental deposit?

Rental deposit?

9:38 AM, 13th October 2023, About A year ago 3

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Hello everyone, I hope someone can help with my query. I re-gained possession of my property via legal action and High Court eviction. On the day of the eviction, the tenant was about 6 weeks in rental arrears.

My agent has been holding 1 month’s deposit in their client account and not in a Rental Deposit Scheme because an AST tenancy agreement was not created (it is a Limited Company let). I have asked my agent to transfer the deposit to me.

However, he has advised that even though the deposit is not held within a Rental Deposit Scheme they still need to get the tenant’s consent to release it to me. Is my agent correct? I would have thought that the tenant was in breach, of contract in terms of rental arrears, so I should have been entitled to keep the deposit without getting the tenant’s consent.

Many thanks in anticipation of any advice,

Nat


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Julie Ford

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13:50 PM, 13th October 2023, About A year ago

Hi, your agent is correct
Deposits don’t need to be protected if not an AST
However you are not automatically entitled to the money

A deposit is the tenants money at all times, you have to prove a reason to deduct from it

If the tenant fails to respond then your next and only step is small claims court

Helen

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14:17 PM, 13th October 2023, About A year ago

Reply to the comment left by Julie Ford at 13/10/2023 - 13:50
When I evicted my tenants through the court for non payment of rent the judge actually decreed that I was entitled to the deposit to partially mitigate my financial loss. It might be worth checking the judge's ruling on this.

Simon F

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15:03 PM, 13th October 2023, About A year ago

It's a commercial let, so surely, it's simply Contract Law in play. Just go by what is in the terms of the contract. Make sure you are dealing with someone senior at the agency.

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