Finally some good news My deposits have ruled in my favour releasing the full deposit to me in respect of two months of rent arrears due to tenant leaving without giving notice.
And although the returned deposit doesn’t fully cover the full amount of rent arrears, deductions or damages it is a start. I have sent him a letter before action he has 14 days to fully clear the debt or I will file a MCOL.
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Congratualtions. Rent arrears seem to be the easiest way to argue with deposit protection schemes.
Do you mind me asking if T was on a good salary in relation to the rent amount?
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Yes he was more than able to pay the rent.
He chose to play the can’t afford the rent despite receiving full amount of UC once he was served sect 21 & sect 8 notices. And finally left without serving notice. Never been so glad to see the back of someone.
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You should take advice before paying for an MCOL claim. I understand that Judges dont like a second claim for the same debt and may consider it discharged already by the deposit scheme.
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I hear you, I have given him the opportunity to repay the balance of his rent arrears only, without the claim for deductions, repairs and missing items in full and final settlement just to be done with him.
If he prefers to defend the claim I am happy to take my chances with a MCOL
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Congratulations- sounds like a relief! Out of interest, why are you filing the MCOL? Is it because you are claiming for incremental losses not covered by the deposit?
The amount of Rent arrears and deductions were higher than the deposit amount I was awarded.
Notify the tenant of your intentions first, then I would suggest in future that you go straight to MCOL if you desire the full amount, and you request the court instruct MyDeposits to release the bond to you in the judgment, which will kill 2 birds with one stone and remove the necessity for the questionable arbitration.
Of course ensure you make the claim against the bond and refuse the release to the tenant pending court proceedings, as well as refusing their arbitration process, assuming the tenant is objecting.
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Very good advice. I will take note.
I have written to the tenant giving him14 days to pay the balance of rent arrears in full and final settlement. If he doesn’t I intend to claim for not only the rent arrears but the interest, deductions a damages.
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That’s fine but, as David said, courts will take into consideration the bond holders’ decisions on arbitration awards and are reluctant to deviate because it opens up a whole new realm of claims for disputed awards, and potential bond holder compensation claims. They would probably consider you should have made a comprehensive claim in the first place but try by all means and let us know how you get on please.
I personally have found the arbitrator for the DPS, in particular, to be bordering on incompetent and I have had 2 successful claims against them for compensation, which never reflects the loss of the bond payment for the justifiable due debt, hence my suggestion you go down the CCJ route initially.
Your approach today should have been your action at the beginning, together with a claim for the bond without arbitration.
When I was managing hands on, I would prepare a full rent and dilapidations statement including any administrative and interest charges, which you can discount to suit your offer of ‘rent arrears paid as full and final settlement’, then the tenant can see exactly what his obligations and options are.
Be sure to send this under cover of an explanatory letter of your terms which you should head with the words “WITHOUT PREJUDICE”, which reserves you the right to vary your claim to the full amount at any time should the tenant not respond / cooperate to your satisfaction.
The court will apply the relevant / allowable interest charges provided you tick the box requesting it and provide details of the daily interest charge sum according to the court set rates of interest.
For the record and your benefit of my experience, I can say the courts are generally very fair, with the exception of very rigid and uncompromising wear & tear opinions, providing you have presented comprehensive and well documented / evidenced claim details and present the claim in the court hearing accurately and dispassionately, assuming it gets that far. Of course, if the tenant does not respond to your MCOL you are at liberty to invoke the automatic judgment option after 10 working days.
NB: there’s no point trying to justify, say a new carpet because a dog ripped it up or they burnt a hole in it, or full charge for new decoration because a smoker left your walls running with nicotine, as the judge will always apply their 5-7 year wear & tear allowance irrespective of the specific circumstances of the damage. Apply 17% / ann. of occupancy as a wear & tear allowance (approx. 6 years as an average), and don’t try to argue against it or you’ll waste your breath and incur the ire of the judge for questioning his judgment.
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