Asking on behalf of a friend who is no longer in the UK.
She rented out her house here. Tenants moved in Jan 2012. They now are moving out and have given adequate notice to do so however are refusing to pay last months rent and telling LL to keep the deposit to cover this. Problem is that they have caused extensive damage to the property that LL was going to need to use deposit to pay for (the amount will not even cover the repairs required). They have also further breached their contract by subletting.
She did not go through an agent to let out her house but now lives abroad so is not around to sort this out. I think she has messed up though as has not put their deposit in a protection scheme so will not have a leg to stand on.
Are the tenants allowed to use the deposit in this way? If they just do not pay and then move out anyway would she ever be able to claim from them or will she always lose because of the payment protection scheme thing?
Thanks for reading! Any advice or links appreciated.