Thank you for your question.
Did you place the deposit in a tenancy deposit scheme?
no. our feeling is that she has renaged on her tenancy agreement without paying any rent we are assuming the deposit will be put towards her first months rent and expenses in setting up tenancy etc. this will still leave us considerably out of pocket.
many thanks derek
Right. You have to play this very very carefully.
Unfortunately, you were obligated to place the deposit in a tenancy deposit scheme within 14 days of the date of the AST. As you have not the tenant has a right to apply to Court on the basis of this breach and the Court will order the return of the whole of the deposit monies and will levy a fine upon you (payable to the tenant) of three times the deposit amount.
I appreciate that three months rent is outstanding, but given that she has the above mentioned right I'm afraid that you may have to take a view about returning the deposit to her and see what money you can get out of her informally in respect of the rent arrears. You do not want her to take legal advice as the first thing they will ask her is if the deposit was placed in a TDS, they will then immediately advise her to make an application in the above described way. You have to protect youself against this.
Here is information relating to tenancy deposits for future reference:-
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