Deposit Protection

[harpreet_sheera]

I have a property which I let out through a letting agency. The tenant put a deposit down for the rent, but being unaware of the change in the law, I did not protect his deposit through a deposit protection agency. I have now protected it albeit late.However, the tenant is now refusing to listen and has decided to take me to court for the late protection of his deposit, so that he can get three times as much money back.I have not touched his deposit and the money has been lying in my account. All I have done is move that money into a deposit protection agency's account. The amount is £1100 and he wants to sue me for 3 times this amount ignoring the request of the letting agent to drop his case. Wher do I stand now?

[Buenchico]

Don't worry. You're in the clear.

See "What if my landlord does not protect my deposit?", here:
http://www.adviceguid..._tenancy_deposits.pdf
You'll see that the court can only impose a three-fold penalty if you've not paid the money into an appropriate scheme before the case gets to court. As you've now put the deposit into a scheme, your tenant is wasting his time.

Chris

[sherrardk]

Is your tenant a bit stupid, do they not realise that you could evict them and they will loose their home? I am pretty sure that our landlord hasn't put our deposit in a scheme (we rent privately) but I wouldn't dream of taking him to court.

[themas]

I hope that, as well as putting the money into a scheme, you have sent the tenant the required notice of which scheme it is in. This is part of the legal requirement.

I must say that I am amazed your letting agent did not advise you of the need to use a deposit scheme. All competent agents should be aware of this - the law came in in 2007.