retention of deposit- landlord

spongejon

I am/was a landlord, and have a query regarding the retention of security deposit. I have read many conflicting threads on the subject.

I had a 6 month lease agreement with my tenant, and his friend. The friend left after the 6 months were up and I then extended the lease with the remaining tenant, writing up a new 3 month contract. On the tenants request, i wrote on the new lease giving him permission to bring someone else in to live with him, if he found someone, under this lease agreement. I must point out that when the 'friend' left after 6 months, i refunded him his half of the security deposit, leaving only half the requesit deposit in place, which the current tenant would replace. As it transpired, only 21 days into the new lease agreement, my tenant phoned me to say that due to him not able to get someone else in to live with him, that he may not be able to pay the following months rent. Clearly with only 10 days notice to next rent due date, he was in breach of Residential Tenancy Act and the lease agreement. And as it turned out, he vacated the property at the end of the first month, leaving a months gas and esb unpaid.

I retained his security deposit to pay towards the following months rent, and had to pay the rest myself. The property has remained vacant since. The lease was not due to expire until end of June. I am now receiving solicitors letters requesting his deposit back, stating that if not it will be referred to the prtb.

I will state that i never regestered initially with the prtb (i know, i can hear the sighs!), and havent since. But I just need to know first whether I should even bother at this stage. I will be moving back to my property this week, thus taking myself off landlord duties. But I am wondering is it worth forking out €180 to the prtb, plus whatever other costs, only to be told that I am in the wrong, and I should be returning the security deposit, when I could save myself the hassle and cost by returning it now.

I have read that security deposits can only be held for damage, loss and wear and tear beyond norm and nothing else. not even for non-payment of rent. But I have also read that if a tenant does not give the required notice period or vacates mid-lease without paying the rent that the landlord is within his rights to retain the deposit.

I would be very interested to hear from anyone who has had a similiar experience, or woud have the expert advice on my situation. I am worried and stressed over the whole thing, have had to take out a personal loan to cover the rest of the mortgage payement for this month and now with the possibilty of having to return the half deposit I dont know what to do.

djimi

Not registering a tenancy with the PRTB could result in you getting a hefty fine (http://public.prtb.ie/re-registrationFAQs.htm#17) if he proceeds with the case against you.

You were right with regards the security deposit; it can be used to pay any unpaid bills which the tenant has left behind, and in this case you were right to retain it. In that regard if he takes a case with the PRTB he wont get very far.

However, from your point of view if he takes a case with the PRTB and they discover that you did not register the tenancy then you could be in a spot of bother. Somebody with first hand experience may be able to offer some better advice, but failing that it might be worth seeking some legal advice to see where you stand.