We didn't protect bond, now tenant is threatening to sue.....

[ohbloodynora]

We were new to letting property.... we had to rent our home out as we had no choice as it was in negative equity and couldn't sell. So here goes...

We didn't realise we had to protect the bond, we had tenancy agreement and took one month rent in advance plus 400 for bond.

At first, HB was paid to us as tenant got in to arrears straight away by not filling in HB forms. She finally caught up (only had 2 weeks in arrears by this point) and HB got paid direct to her. We then didn't recieve any rent from her until she was 4 more weeks in arrears and the council agreed to pay us again. She claimed she didn't recieve the HB during this period so I advised her to take it up with the council....she never did.

When she left she agreed to let us keep bond for arrears.

Council wrote to us both advising they had overpaid us by a few pounds, she got the same letter and is now disputing her arrears as she has misunderstood the letter.

I'm now worried sick, what can she do to us?

Hi,

I think I understand what you are saying. Maybe this will help. www.upad.co.uk/blog/2011/09/landlords-and-tenancy-deposits-%E2%80%93-the-current-legal-state-of-play/

As I understand it a precedent has been set - you should register the deposit BUT if you don't and the Tenant takes action you should do it before the court date. As long as you do this you can't be fined. So the law is a bit toothless in this respect.

For the amounts involved I don't think this will go anywhere, so I wouldn't worry as long as you are sure that you have been fair and reasonable in the matter. I would refund the council the few pounds they want because you will have signed a statemnt to get the direct payments in the first place, because it sounds like a small amount, and to get them off your back.

Be careful with the council - they can take the money off you for a period of 6 yrs if they can prove that you knew you were overpaid.

Good luck - welcome to the joys of dealing with tenants and HB departments!

E x

Thank you for your reply.
I should have mentioned that the tenant moved out at the beginning of November - I don't suppose I could do it now?

I paid the council straight away, it was only 12 pounds, however the tenant is disputing the arrears which total 6 weeks rent. We took a bond of 450 and a months rent in advance (which she is now saying was the whole bond!)