Tenant now says that their deposit was a loan and claiming from Local Authority Relief Fund ?
General Discussion

New Landlord
New Landlord
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13 Posts
9 years ago
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This may be a well covered topic already, but as I am a new landlord this one has surprised me.
The tenancy was agreed and completed using the RLA TDS AST Agreement forms. The tenant fills in and signs the agreement stating that they are the only payers of the deposit,and there is no other contributor.
All well and good, deposit recieved, tennancy starts.
One month in, I recieve a letter from the local authority stating that due to the tenant claiming that they had borrowed the money for the deposit,the local authority had now already repayed the amount in full to the tenant from an emergancy relief scheme and now expect me to protect the deposit I recieved in the LA's name and return it to them at the end of the tennancy.
I have already registered the deposit with the TDS using the correct details with the tenant as the only payer of the deposit on the AST Form, handed certificate to tenant the day after the tenancy starts, so presume I have covered my responsabilities.
I can hardly believe that such action is possible by a LA without reference to either the landlord or the tenancy agreement, am I wrong, or does this happen all the time?
This leaves the tenant with no financial responsability for any damage caused, plus put me in a position of a battle with the LA over the deposit, when they were not party to the original contract.
Does anyone have experience of handling this please?

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