Deposit from Council

I have tenants who moved into my house two years ago. Now they broke up, she moved out, he and the rest of his family (mom and his child) want to stay in this house. the problem is that the deposit was paid by the council and, according to the contract, after the end of the contract it returns to the council. My question is, do I have to return the entire deposit to the council, or just half, since the other tenant entitled to it remains at the address? Thank you in advance for your advice

Unless the one who has moved out served a valid notice, the tenancy continues and if this is a joint tenancy, she is still a tenant. You therefore dont need to return any deposit.

If the tenancy is currently periodic, she could serve notice now if she wants to end her liability. This would end the tenancy for everyone. You could then decide if you want to continue letting to the rest of the family. If not, they must move out when her notice expires or they become tresspassers.

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Problem is with deposit. She moved out ( handed me notice) and now she wands her part of the deposit. Deposit was a Discretionary Housing Payment and she expects me to paid it back on her personal account, not to the council .
I called the housing benefit office and they have no idea what to do in this situation. Should I send her part of deposit to council, or keep entire money as the depoisit for other tenant ( her ex boyfriend - they both on contract) ho want to stay home.

My understanding is even if she gave you a notice and moved out, she’s still responsible for paying the rent for as long as the old Tenancy Agreement is in place (and you theoretically can demand it from her, not that you will). You don’t owe her her part of deposit, unless you sign a new TA for the remaing partner only. I would leave it as such, to make things easier for yourself. The bureaucracy of dealing with council tenants is too much to make such changes.

if the council paid it then I would hang on till they tell you who gets it


I’m no expert, but it seems to me that the money wasn’t hers to start with so therefore she has no claim to it.

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Absolutely It belongs to the taxpayer

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Was her notice valid? Is this a joint tenancy? Is the tenancy now periodic? The answer to your questions depend on the answer to these.

Thank you David
The ntice is valid, that was joint tenancy, on deposit is her and his name. It’s periodic tenancy.

Then the tenancy ends for everyone when her notice expires. You should inform him that if he doesnt also leave he will become a trespasser. You would also be entied to a daily charge from him, (NOT RENT) of double the rent for each day he overstays.

Totally agree, but what if there are damages to be offset against the deposit money? I currently find myself with half the deposit paid by the council directly into my account - without my permission or contacting me on a property that was advertised for “professionals only - no benefits etc”. I know I should have returned it and not let them start - my fault entirely! but what about such monies for damages?

contest it with them

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Did the deposit Prescribed Information that you served note the Council as a related party, and did you also serve a copy on the Council? If not then the deposit may be incorrectly protected, and you may be open to a penalty claim from the tenant and/or Council. Hopefully this wont happen, but its as well to be prepared.

Thanks David, No excuses I know, don;t know how I managed to do it but I failed record the council as a 3rd party. Will update and see what happens!