Agent refusing to hand over deposit to LL

[Helsbells]

I rented out a house throught a letting agent in April 2005 on AST. The tenant paid the deposit to the agent. On completion of the 6 Months AST, the letting agent stated they didn't want to deal with the property & tenant, as he was a bad payer. The tenant stayed in the property, but no new agreement was signed - the tenant just carried on paying the rent:to me rather than the agent. I have asked the agent for the deposit on many occassions, but he chooses to ignore the requests. I have told him that I will take him to Small Claims Court to retrieve deposit. What is the legal position? The tenant has also now left the property owing rent. Can this be taken from deposit? Many Thanks...H

[Paul_f]

The deposit belongs to the tenant, but as the agent is "transparent" as far as the legal position is he has to deal with it according to the tenancy agreement. The agent has no jurisidction in any decision on the return of the deposit, he just has to take instructions as follows:-.

If it's held as stakeholder the deposit has to be returned with the agreement of both landlord and tenant, of if hedl as landlord's agent then you are entitled to ask for it. If it's silent then you have reasonable grounds for instructing the agent to send it to you, especially as there are arrears of rent.

You will proably have to threaten court action but the mere threat might be enough!