The Property has been managed over the 2 Year Term by an ARLA Letting Agent at 15% of the Rent, equivalent to L5,000 p.a. in this instance.
The existing Tenants have made an offer to enter into a new 6 month Short Term Assured Tenancy Agreement.
The Tenant and Landlord have jointly agreed that the Letting Agent's contract not be renewed.
The Letting Agent may argue that having introduced the Tenant the 6 months is no more than an extension of the existing Lettings Agreement.
The Tenant has agreed that under the new Tenancy Agreement the Landlord provide the Management Services as a condition of entering into the new Tenancy Agreement.
Accepting that the Landlord assumes the Management Services contract please advise as to how to manage the Tenant's deposit (pre April'07) and what if any arbitrage proceedures apply if the Deposit is placed with the Landlord's solicitors.