DEPOSIT DEMANDS ………….

I have let out my property in Paisley for a number of years and taken a £100 deposit against damage.  I recently let to a young couple who left after six months without giving any notice.  They left the flat in a total mess that took me several hours to clean up.  Their solicitor is demanding the return of the deposit, which I feel is ours for the mess they left ?

Deductions from deposits can be a contentious issue that takes time and inconvenience to resolve. Your letter raises two rental issues: deposits and notices.  Any lease should clearly state how a deposit is collected, retained and either returned or accounted for in any subsequent claim against it.  Always remember that a lease is a contract and a poorly drafted lease can severely reduce your rights in a dispute with your tenant and/or their solicitor.

Taking a surety deposit against potential damage to your property is always a sensible action when letting.  We always hold a surety deposit equal to one month’s rent rather that one as small as £100.  Over the years we have found that in holding a greater sum against damage reduces the likelihood of a claim.

A comprehensive inventory and schedule of conditions should accompany any lease.  Indeed this document becomes part of the contract and provides evidence to support any subsequent claim.  That said, the inventory should be a true reflection of the property’s furnishings and condition

Armed with a signed inventory and faced with a mess to clear up, it is not unreasonable to make a claim for your time and materials.  Equally we have found that warning a tenant in writing prior to their exit that a claim on their surety deposit could ensue if their obligations in the lease are not met on exit, does yield results.  Simple things like defrosting a fridge, cleaning a cooker and putting items back into the places listed on the inventory all reduce the likelihood of any claim.

Another irritation can be tenants that change an ordinary gas and electricity meter for pre-paid meters or change utility suppliers without informing the landlord or us.  A lot of time is taken up organising meter removals and re-notifying the new utility suppliers of exit readings and forwarding addresses.  Again it is not unreasonable to make administrative charges for work to correct unauthorised utility changes.

A tenant leaving at six months without giving notice is an area that can be equally contentious.  There is an argument that a Short Assured Tenancy as set up by the Housing (Scotland) Act 1988 is a fixed six month term and that no notice need be given to conclude it.  This may be valid if the lease has no fixed period of notice to conclude the tenancy, however standard leases usually require one month’s written notice.  This requires the tenants to notify you, well in advance of any exit, allowing the property to be advertised during the notice period.  In not notifying you they will be in breach of the lease as a Scottish tenancy automatically renews itself under its original terms (‘tacit relocation’) at the end of the initial six-month term.  

It does not seem unreasonable for you to make a claim on the £100 surety deposit for cleaning and failure to give notice if your lease and inventory can back you up. The problem comes in weighing up solicitors’ fees against refunding, if you do not have insurance to cover such disputes.  Housing Benefit tenants that have access to legal aid are far more likely to pursue small sums claimed from a surety deposit.  To avoid such potential expense in future we would suggest that you use a letting agent such as Key-Lets that can offer you rent and legal protection at reasonable rates.  We can also take the hassle away by making sure that any claim made is fully backed up and justified.