Deposit hasn't been protected - landlord is trying to recover it from letting agent!

[GTR34]

Hello all,

This situation has been stressing me out recently, more the fact that my housemates are very dirty.
I live in a shared house and rent a room. There are 5 tenants altogether.

When I moved in this room in December 2012 I paid the deposit to the letting agent on the day I moved in by bank transfer. In January 2013 I noticed I haven't received any information about my deposit being protected so I spoke to the letting agent and he said he changed his company name and had to move it out but will be protected soon (?!). A week after the landlord came into the house with a new agent as he has disputes with the old one - apparently the old letting agent hasn't paid the landlord any money.

To date my deposit is still not protected and I need to move out soon. I've spoken with the new letting agent and he said the landlord is still trying to recover the deposit. I'm scared that the landlord will swallow my hard earned money .

What are my options?

[leclerc]

Re: Deposit hasn't been protected - landlord is trying to recover it from letting age

The landlord is at fault so ultimately, make sure that your room is clean and tidy and that there is no need for the landlord to make deductions. furthermore, I would take pictures of the room before you shut the door for the final time so that you have documentary evidence as to the state of your room alone(I live in a shared house so room clean, cupboard that was allocated for your food clean, and fridge shelf clean if you have one t yourself). It the landlord's responsibility to protect the money so the issue with the previous agent is irrelevant to you since you are the tenant.

[CleverClogs]

Re: Deposit hasn't been protected - landlord is trying to recover it from letting age

I moved in by bank transfer.

I suppose that would save on removal costs, Will you move out by the same method?

I agree with leclarc - the law states that, rather than the letting agent, the landlord is directly responsible for the protection of the deposit.

[PlanB]

Re: Deposit hasn't been protected - landlord is trying to recover it from letting age

This situation has been stressing me out recently, more the fact that my housemates are very dirty. I live in a shared house and rent a room. There are 5 tenants altogether.

. . . . I paid the deposit to the letting agent on the day I moved in by bank transfer. In January 2013 I noticed I haven't received any information about my deposit being protected so I spoke to the letting agent and he said he changed his company name and had to move it out but will be protected soon (?!). A week after the landlord came into the house with a new agent as he has disputes with the old one - apparently the old letting agent hasn't paid the landlord any money.

. . . To date my deposit is still not protected and I need to move out soon. I've spoken with the new letting agent and he said the landlord is still trying to recover the deposit.

A lot of what happens now will depend on what kind of tenancy agreement you have. Is this a joint tenancy agreement with all five tenants named on it? If it is then you will all be jointly and severally liable for any deductions from your deposits caused by your dirty housemates even if you kept everything spic and span Or was it an assured shorthold tenancy agreement between you and the Landlord only?

In either case the legal detail concerning the use of your deposit will be spelt out in a clause in your agreement. What that says is what will happen. Some specifically say the deposit cannot be used for rent to prevent tenants withholding the last month's rent before they move out which leaves the Landlord with nothing to pay for any damage. When are you due to move out because withholding your rent to an equal amount of the deposit you paid may be a radical option :wink: I doubt the Landlord could sue you for it since he's got your deposit (in theory) even if it's sitting in his agent's bank account.

As has been said it's the Landlord who has the duty to insure your deposit not the letting agent. Once you move out the court (if it gets that far) will only order a return of your deposit less any items the Landlord wishes to counterclaim. There was a mandatory penalty of three times the deposit paid to the tenant but the Supreme Court ruled that will now only be at the judge's discretion once the Tenant has left the building.

One thing puzzles me in your post. You say the new letting agent is the same person as the old letting agent only he changed the company name. Or did you mean the old agent changed into another agent and then the Landlord sacked him and instructed a new agent? Have you checked whether the old company went into liquidation (or something else final like BR) taking your money with it? I sense something fishy going on here :fish:

[PlanB]

Re: Deposit hasn't been protected - landlord is trying to recover it from letting age

Here's a bit of legal stuff so you know where you stand. Note that the Landlord can't evict you from the property (or serve a section 21 Notice) while the deposit remains unprotected. This means you could stay for as long as you like without paying any rent and there woud be nothing the Landlord could do about it until he protects your deposit.

While I don't recommend you go down that route, it might be useful to make him aware of your rights That usually gets a deposit protected within hours. Read this link and then write him a letter. Do it now, don't wait until you move out because your legal options and pressure tactics diminish once you've gone :typing:

http://www.wragge.com/analysis_8650.asp

[PlanB]

Re: Deposit hasn't been protected - landlord is trying to recover it from letting age

I live in a shared house and rent a room. There are 5 tenants altogether.

I should have said that there are some situations where a Landlord is exempt from protecting a deposit because they fall outside of the law. These include (some) Assured Tenancies (ATs not ASTs), Limited Company lets, and Licenses. I raise this because often when you rent only a room it can be on a Licence.

Also check what paperwork you signed with the first letting agent and whether it promised to insure your deposit on behalf of the Landlord. You probably paid an "administration fee" for setting up the let so you would have entered into a contract. There may be some mileage in pursuing him (in his new guise) even if only to The Property Ombudsman to get back the fee you paid for poor service.