Question

Deposits and Tenancy Deposit Schemes (England) | Deposits and Tenancy Deposit Schemes (Wales)

Can’t get tenant bank details to refund deposit

13 Jun 2016 | 2 comments

Our tenants just moved out
During checkout they disagreed with costs of missing items and damage to property.
I followed up with an email advising of costs to repair and restore items under discussion and advised how much we wanted to deduct and how much of the deposit we want to refund.

We also don’t have their bank details, so ask them to supply them so we can refund them deposit minus deductions.

Rather than reply with an acceptance or disagreement, the tenants have just gone silent.
We don’t have anyway of refunding their deposit and 10 days deadline allowed for refunding deposits has passed.
The deposit is held by us, registered with Tds insurance based scheme

What’s legal status of this money. Do we hold it for them for ever? Or is there a point in time where we can count this money as ours?
Beyond sending two emails and two tests is there anything we are required to do prove we have made reasonable efforts to refund them?

Answer

2 Comments

  1. guildy

    The 10 day rule is not a maximum time to have the deposit returned by but is the time allowed before a tenant may make a request to the deposit scheme for payment from the landlord.

    On the prescribed information there must be an address to be used for the tenant at the end of the tenancy (if not, the prescribed information hasn’t been completed correctly). You should therefore send a cheque for the balance and explanation of deductions to that address and retain the part you wish to keep.

    The tenant can then go to the scheme and raise a dispute if they wish whereby you would be required to give the amount in dispute to the scheme whilst it’s decided who should get what.

    The tenant has 6 years to claim their deposit back.

    • iambeard

      We purchased the property with the tenants already living there. The AST they signed with their previous letting agents in 2012 doesn’t include prescribed information.
      We offered to renew the AST at which time we would have completed all the correct information , but they chose not to renew and she we served notice and they moved out.

      We will continue to call and email and few times. Otherwise I guess our option is to keep the money for them for 6 years.

      I have to say I didn’t expect to find it difficult to return a deposit to tenants.

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