Sunday, July 3, 2011

My deposit vanished and the landlord doesn't want to know

A landlord lands a huge bill for not checking that his tenants' deposit was secure and telling them to chase the letting agents

When we moved from our rented home in January 2010 we gave the landlord one month's notice. He was happy with this and was satisfied with the condition of the house. But when we asked for our deposit back he said he hadn't received it from the letting agent, nor the first couple of months' rent. The local letting agent, Portfolio Property Solutions, is now uncontactable. With four children and one wage we can't afford to lose our �650 deposit but the landlord says it is up to us to chase the agent for our money. NF, Colwyn Bay

Your story is a terrifying warning for landlords and tenants alike. Tenants' deposits must be secured with one of three authorised schemes. Each one confirmed that your deposit had not been registered, which means your money is unsafe and you have no access to the free complaints service the schemes provide.

But the landlord is wrong to say you must fight it out with the agent, because landlords are ultimately responsible for protecting deposits, even when they appoint letting agents to act on their behalf. If neither agent nor landlord returns the deposit, the court can fine the landlord three times the amount of the deposit. This might seem unfair on a landlord who never received the money from the agent, but that is where the responsibility lies.

When I explained your rights in February 2010, you wrote to your landlord giving him the opportunity to pay up before taking him to court. He failed to respond and you paid �80 to the small claims court. The landlord then threatened to chase you for missing money.

At the first court hearing in May 2010 the landlord claimed he needed more time to prepare his defence. He was granted an extra two weeks. He then counter-claimed that he had not received the first two months' rent. Your bank statements proved that you had paid the agent.

You were back in court in October, and served notice on the letting agent which led to another court hearing in November. Each hearing meant more costs and more time off work. The letting agent failed to respond and was granted a further two weeks.

At yet another hearing in April, the court ordered the landlord to pay you three times the amount of the deposit plus your costs because he had not checked that the deposit had been securely lodged.

You had to wait until May to attend court to get the money but did at last receive �2,241 from the landlord. You have earned every penny of it. The agent was also instructed to return your �650 deposit but you have had to instruct bailiffs for this, which could be an even longer story. The letting agent did not respond to my calls.

The law was clearly on your side but it has taken 16 months of hard work to get back your money. It was also an expensive lesson for the landlord.

You can email Margaret Dibben at your.problems@observer.co.uk or write to Margaret Dibben, Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU and include a telephone number. Do not enclose SAEs or original documents. The newspaper accepts no legal responsibility for advice.


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Source: http://www.guardian.co.uk/money/2011/jul/02/landlord-kept-tenants-deposit-rented-property

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