Claiming expenses from Deposit as tenant did not move in

Landlord Discussion
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We found a tenant who paid the deposit and first month’s rent. A10 days before he was due to move in he said he could not. We were going to agree mutual suspension of contract but realised Open Rent would then return the deposit in full when we had no idea how long it would take to find a new tenant.

We now have a new tenant but need to claim legitimate expenses (Open Rent advertising plus minimal £20 utilities and £200 council tax). The deposit is held by Open Rent,

How do we claim expenses back and should we action the mutual suspension of contract before or flyer we get the expenses?

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@Helen94

Discuss with the former potential tenant with the evidence of the expenses you have incurred.

Explain that you could have required them to give 2 months notice (ending the day before a rent payment date) and paid two months rent, but are willing to sign the mutual surrender if they pay these costs.

If they refuse, you claim from the deposit scheme (just like damage or rent arrears) based on evidenced costs.

I’m guessing the council.tax and utilities are based on a period before the new tenant moves in. You could wait till that actually happens before signing the mutual surrender, so you know the actual costs and can put those to the deposit scheme when claiming. In addition if new tenant drops out or delays your costs will be higher. Meanwhile your tenant is on the hook for the rent due so if necessary you will be able to claim up to 5wks rent arrears from the deposit scheme. Don’t accept keys back meanwhile or take possession of the property. Wait at least till the rent arrears will cover your additional costs before signing the surrender then you have the choice of claiming from the deposit scheme either as rent arrears ,(which are easy to prove as you have date tenancy ends and tenant cant prove they paid for the extra days) or for the various items you mention- where you’ll ideally get evidence of actual costs incurred estimates.

Good luck

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Payments when you end the tenancy without giving the correct amount of notice

If you give less than the minimum amount of notice to end the tenancy, your landlord can require a payment. This cannot be more than the amount of rent due until the minimum notice period ends (2 months starting on the day rent is due).