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Cash Machine said: Posted on: 12/04/2016 16:23

I have a question regarding the deposit which I am holding for a property. Basically I issued a S21 notice which was due to expire in early May and the tenants just left (giving me 1 weeks notice). They are demanding their deposit back (1 months rent) in full.

It should be noted that they are in arrears regarding the rent as they have not paid me rent since the S21 was issued, which now amounts to nearly 3 weeks rent. They have advised me they will pay me the owed rent after I return the full deposit.

Anyway, I guess the advice I need is whether or not I have to return them any money at all, and if I do then how much.
To put the sums into perspective:
1. I have a deposit equivalent to one months rent, this is registered with the TDS Scheme
2. Rent has been paid to me in full up to 28 March2016.
3. Check-out inventory revealed a few issues (mostly minor) but they would need some work to put-right.
4. There is a balance of money owed to me (which was confirmed by the tenants of £300) which was from money I transferred to them in relation to white goods.
I think the important thing is that I was not given proper notice of their departure (1 months notice) as per the terms of the tenancy. I guess on that basis they would owe me for the balance of their notice period.
I could, as a gesture of goodwill refund the balance of their deposit, less the owed rent from 28 March until 11 April, also less the £300. I think this would be fair (I am sure they would disagree) given the lack of sufficient notice. I wanted to be sure this is correct before I offer it to them?

If they donít accept the offer then could I seek the full months notice period (from a week ago) which would effectively leave them owning me money?

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