Property Mentor Investment Questions

The following question was recently submitted to our property experts by an individual looking for advice on how to deal with their property let. If you have got a question regarding your tenancy/property, contact us now via the link to the right.

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Q: Can I still serve a section 8 even though they claim I have a deposit from them?

I have just taken on some new tenants who after giving me a deposit by cheque, I recipicated by giving them a receipt in good faith. After trying to deposit this cheque, by bank informed me that it had bounced as there was insufficient funds in their account. Unfortunately they had already moved in and have since fallen into arrears. As I am writing this they are 7 weeks in rental arrears and I have informed them that I will start eviction proceedings if they don't pay their rent. They have now turned around saying I am dishonest as I have their deposit, but this of course never materialised as they didn't have the funds. Can I still serve them with a section 8, despite them having a receipt?

From Karl Tompson | Manchester | 02/11/2010 | Legal


They may have the receipt that you gave to them in good faith, but your bank can prove that the cheque for this deposit bounced and that their tenancy deposit was never actually paid to you (you should make this clear if they try to take action against you by producing this statement).

This also essentially means they cannot claim under the tenancy deposit regulations and you can proceed with a Section 8 notice once they are over 8 weeks in rental arrears.

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I have been investing since 1984, and from the good of the 1980's to the lows of the 1990's, I thought I had seen it all, but the course proved otherwise. I first heard about it from a group of friends. They had been on the course the year before... Read more

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