Deposit dispute case study - Utility bills

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We offer an independent and impartial resolution service for landlords, agents and tenants who are unable to reach an agreement on distributing the deposit when the tenancy ends.

We look at a recent case and break it down. Our Lead Adjudicator, Emma Louka helps you to understand our approach.

Deposit details

Deposit                              £1,050.00

Disputed amount             £194.76

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What happened?

The tenant said:

  • I called the utility company with all my details the day I moved into the property so that the bills could be sent directly to me
  • I paid every bill during the tenancy, except for the final bill, which was paid late due to me overlooking this, but this has now been resolved
  • there is no outstanding amount owing

 

The agent responded, saying:

  • the landlord found bills at the property showing £194.76 outstanding for the last period of the tenancy
  • the tenant has been refunded the deposit less this amount, as the tenant has not provided proof that all bills have been paid
  • the landlord is requesting this amount to pay the outstanding charges

 

What evidence was provided?

Tenancy agreement, utility bills

 

What was decided and why?

  1. The tenancy agreement said that the tenant was responsible for making sure the bills, including gas and electricity, were registered in their own name and that these were settled for the entire time they lived at the property.
  2. The bills provided by the landlord were in the tenant’s name and showed that for the last period of the tenancy £194.76 was owing.
  3. No evidence was provided by the landlord to show that they had been asked to pay any outstanding amounts, which is essential for showing a loss has been or will be incurred.
  4. The tenant had also provided evidence to show that they had since settled their account, in full, shortly after they left the property.
  5. Where bills are in the tenant’s name, the contract is between the tenant and the utility provider and as there was no amount outstanding or loss to the landlord, no award could be made.

 Key take away points

  • Maintaining contact with tenants at the end of the tenancy is important so any concerns can be discussed and potentially resolved, to avoid them escalating
  • An amount can only be taken from the deposit, where there is a clear breach of the tenancy agreement
  • In the case of bills, a landlord will need to demonstrate a loss or potential loss, either showing they have paid the outstanding bills that were never registered in the tenant’s name or show that after informing the utility provider a tenancy was ongoing, demands are still being made for payment from them
  • The tenancy agreement is important to set out who is responsible for which bills and whether it is down to the tenant or landlord to register the new tenancy details

 

For more information on tenancy agreements, read our guide ‘Tenancy agreements for landlords in England: what to include in your rental agreement’.

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