Deposit Return

[Gigi]

As my 6 month contract with the letting agency is due to end soon I shall be kicking them into touch.

What happens to the deposit?

Surely they hold this from the tenant on my behalf and until the tenant leaves it is held by either the landlord or landlords agent?

Ditto with any documents they hold?

[Poppy]

So what you're saying is "I'm a landlord and I don't know who has my tenant's deposit.". Have I got that right?

[Gigi]

Not at all

The letting agent (on a management contract) has the tenants deposit and all the other documentation. But I have never been in a situation where I have terminated a management contract and I am anticipating problems based on my experience with letting agents. I was just asking if anyone could advise me of the legalities.
I know a deposit is just that and is not mine but a security against breach of contract/lease and I have been Extremely fair with past tenants (and that is extremely with a capital E).

What I don't want is for the agent to return the deposit to the tenant putting me in the difficult position of having a tenant in situ with no deposit and all the headaches that could cause.

[MrShed]

AFAIK the deposit should go to you not the tenant. Not exactly the same, but in a situation where a landlord sold a property to another landlord with tenants in situ, the owner would transfer the deposit to the new owner, so I guess this would be the same.

[Poj McDodge]

The agent should have given the deposit to you at the begining of the tenancy. Why should they be getting any interest on the money.

[Paul_f]

C'mon everybody, read my article which you can access from the home page which has been there for nearly three years now!

If the landlord terminates his contract with the agency mid-term, then the written permission of the tenant must be obtained to transfer it to him.

If at the end of the tenancy the deposit was held as landlord's agent then the landlord can decide whether there should be any deductions; if it's as stakeholder then there has to be agreement between landlord & tenant as to any deductions. It should be defined within the AST, but if not then I would suggest the former would take precedence.