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Deposit problems - what do i do?   Logged in as: Guest
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Petal291

 

Posts: 1
Joined: 12/7/2006
 

Deposit problems - what do i do? 
On 24 February 2006 I signed a 12 month tenancy agreement with my sister to rent a private property. I believe this tenancy was a short hold tenancy agreement. The tenancy was for a year with a get out clause of one months notice after six months.

Two months into the agreement my sister moved out of the house and stopped paying rent. I have been left to cover the £700 rent since April on my own but this has been a great financial struggle. The landlords adviced that if i didn't pay the rent they were covered by an insurance and they would take me to court to re-claim any unpaid rent and evict me.

The tenancy agreement expires on 24 February 2007 but i can give notice after six months. The landlords agreed that I could move out on 24 August which is six months into the tenancy, meaning i would be leaving a month earlier than stated in the contract but the landlords said as compensation to them for me leaving a month early they would keep my deposit. I alreday know new tenants are moving in the day i move out. So i argued with the landlord that they have no right to keep my deposit as compensatoin as they are not losing any money. I have two phone conversatoins to this effect with the landlord.

Anyway, the landlord has now said that new tenants are moving in and she will re-imburse me with my deposit, that i had miss understood her, and of course she would not keep my deposit as compensation. But i am not stupid i had two conversatoins with her and she clearly said she would keep my deposit as i was moving out a month early.

My last months rent of £700 is due on 24 July 2006, but the problem is I do not have this money, I am having bad financial problems. I've robbed peter to pay Paul, so to speak to pay the rent over the last few months and now do not have the last months rent. Not only am i in financial difficulties but i strongly believe that the landlord will not reimburse me my deposit. I know that i have no real legal standing, other than to take them to court to get back my deposit money back if they keep it. If i did borrow £700 to pay the last months rent, i can not afford to lose the deposit money.

People have advised me not to pay my last months rent if I do not have it and to not borrow anymore money to pay it. I've been told to tell the landlord to keep my deposit as the non payment of this months rent. I've also been told that the landlord would not be able to evict me before the 24 August. I've been told that I have to have two months rent arrears before they can evict me? I've paid my rent on time every month and in full.

If I do not pay my last months rent, what can the landlord do to me? How quickly can they evict me? Will I be able to stay in the house until 24 August 2006? If I move out before this date I won't have anywhere to live. I have new accommodation to move to but I can not have this until 24 August 2006 so of course do not want to be made homeless before this date.

There is no damage in the house, carpets, curtains, gardens, are clean and kept well. I do not want to be in this position but I don't know what else to do, other than tell the landlord to keep my deposit to cover my last months rent arrears. But can they make me homeless before the 24 August? I am fully aware they can take me to court for any money owed but at the moment my main concern is whether or not they can make me homeless before I get new accommodation on 24 August 2006.

I will appreciate any advice, as i'm worried about this..........I hope it all makes sense.


< Message edited by Petal291 -- 12/7/2006 10:09:12 AM >
  Report Abuse |  Date 12/7/2006 9:57:22 AM

danjohnson

 

Posts: 245
Joined: 12/5/2000
 

RE: Deposit problems - what do i do? (in reply to Petal291) 
Hi there

This is a tricky situation and you're right that you don't have an awful lot of room for manouvre, legally speaking. The best way through it should be to be diplomatic, mature and hope that the landlord is reasonable.

It's never a good idea to simply leave a property without paying the last month, anticipating a lack of action from the landlord on account of them keeping the deposit. Though many wouldn't bother with the hassle, a landlord is entitled to pursue you for the final month's rent through the courts, as well as seeking to retain some of the deposit to cover damages etc.

Thinking to the future, having a county court judgement against you (which you will have if you get evicted) is not something you want. It might seem like the easy way out in the short term, but it will present difficulties with credit checks in the future, with the result that you end up paying much more for loans, mortgages and so on.

If you're accurate in your description, a real positive factor for you is that there is no damage to the property and that it is in good, well kept condition. This should encourage the landlord to be reasonable with you.

The landlord cannot evict you before the date of the break clause. In fact, legally it would take them some time beyond that date to actually get you out, as there are a number of stages to go through.

It's only personal opinion, but I would suggest talking to the landlord and explaining the situation to them, maybe even inviting them to the property to show them that it's in good condition. You might then be able to come to some agreement regarding offsetting the deposit against the last month's rent.

If you can convince them that you have a place to move to and will not just squat in the property beyond the end date, they may let you take that approach. On balance, it may seem like the least hassle for them.

Even if you have to pay a small amount for a formal agreement to be drawn up, that removes your liability for rent in that month and their obligation to return the deposit, that might be worth it.

Sorry not to be more helpful, but the contractual situation does mean that you're relying on the goodwill of the landlord.
  Report Abuse |  Date 12/7/2006 10:17:11 AM
 
P.Pilcher

 

Posts: 102
Joined: 25/7/2003
 

RE: Deposit problems - what do i do? (in reply to Petal291) 
Although Danjohnson is absolutely spot on with his advice, I shouldn't worry too much. It is fairly obvious that the landlords started off by demanding all the rent that they were entitled to before replacement tenants were found. Once these were in place, and as a result of your arguement, they climbed down - as the law requires, but they can claim from you the costs, or a portion of the costs of finding the new tenants.
If, as you say, you will be leaving the property in tip top condition they will have little excuse to make claims against your deposit, but I suggest you get some photographic evidence to support this if you can, just in case. If you fail to pay your last month's rent, they have to give you two months notice to vacate (under a section 21 notice) or wait until you are two months in arrear and serve you with a section 8 notice, where you get 2 weeks to leave. As you can see, with such timings it is impractical for them to take any action. They then have to go to court to get the possession order anyway which takes even longer.
When they have discovered these facts for themselves, I expect they will, with reluctance, accept your offer, particularly as the cost of court action is probably out of all proportion to any moneys they might recover.

Best of luck

P.P.
  Report Abuse |  Date 12/7/2006 4:45:33 PM
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