Where is my tenant son's deposit?

[rabbitygirl]

My son took took over a joint tenancy with a friend when the original flatmate moved on. It was handled by the landlords agents. A few months ago the flat was sold to a developer and the boys are moving out. The new landlord is not with the original agent who didn't even know the flat had been sold.

My sons deposit was paid in September last year, his friends before the deposit scheme came in early last year.

The agent acting for the original landlord has now ceased trading.
So where might their deposits be?

[Eve]

Is it known whether the original agent did hold the deposit or whether it was transferred to the original Landlord for them to hold.

When the agent ceased trading then, if they held the deposit, I'd have said the most sensible thing would have been for them to hand the deposit back to the original Landlord unless there were financial difficulties.

When the flat was sold then it would be usual for the deposit to be transferred to the new owner (developer) along with an apportionment relating to rent.

If the agent doesn't know anything about it (it sounds like you've spoken to them regardless) then can they tell you who held the deposit.

Does the tenancy agreement say anything about the deposit? Is it with the original landlord and your son and friend or with the agents, son and friend?

If in the original Landlord's name then I'd say the new Landlord should honour the return of the deposit as it's not your son's fault if it wasn't transferred when the flat was sold. They can make their own claims over this.

The contract for sale would have been subject to the tenancy agreements so check with the developers if they will honour it and return his full deposit.

Has he got any receipts or similar as proof of payment?

Could he negotiate on rent eg he stops his rent early to equal the amount of the deposit (don't cancel anything that has been already paid like a cheque though)? do negotiate though rather than just witholding it.

If they are being difficult and saying they don't have it so won't return it, you could ask the developer to provide a response in writing as to why no deposit is being returned so that you can take legal advice accordingly.

[rabbitygirl]

Thanks for your very informative response Jenna. Plenty to get on with there and I shall pass all this on to my son.

Thanks again for your time.

[stonekicker]

i would withhold an amount of rent equal to the deposit before vacating, explaining why instead of faffing around as suggested. heve done this in my last 3 rented properties (all left spotless and in better condition than i moved into) and never had any problems. he should have a receipt for the deposit, though - if not he's a silly billy for handing money over and not getting one.

[Fresh121]

This has been discussed on other related landlord / tenant websites. Try Landlordzone?

[Twenty20]

Your son's contract is with the new landlord. It's this landlord that your son must contact regarding the return (or otherwise) of the deposit. If he withholds rent, as suggested above, in lieu of deposit, it will be him who is in the wrong not the landlord or agent.