As reported widely in the Guardian and taken up by newspapers and web sites last week, a rent-to-rent middleman supposedly vanished taking millions of pounds from tenants’ deposits.

Daniel Burton, who ran subletting agency Unida Place, has promised to pay back every debt. It was reported that he had closed down with a high number of tenants deposits unpaid.

A number of tenants had turned up to the offices in Charlotte Street in London to get their money only to be faced with a notice saying that the business was no longer there.

 After the newspaper’s story had run Burton surfaced and issued a statement on UnidaPlace.com:

“Firstly, I have not disappeared, ran off into the sunset with millions of pounds despite some sensationalistic journalism. I am currently working 80-90 hours per week in order to pay back every penny to my creditors.

“Unfortunately, I have made some bad business decisions during the growth of my company. I was young, naive, and took my eyes of the ball. I trusted staff when I shouldn’t have and was slow to react to certain situations. I overtraded and was guilty of burying my head in the sand for which I apologise and I am trying my very best to make amends.

“I am holding my hands up and taking full responsibility for mine and my staff’s actions. Over the next 10-14 days I will be contacting every single person I owe money too and explaining what I intend to do. I can’t say exactly when I will be able to pay everyone back but I have already paid over £30,000 back and I personally guarantee everyone will be paid back. I am working all the hours I possibly can to do this and for all you people that think I’m living in the lap of luxury I’m driving a 53-plate Transit van, I have sold all my assets and I’m taking minimum wage so I can pay back as much as I can, as quickly as possible. I’m not asking for praise or compliments but just letting you all know what my intentions are and that they are honourable.

“I wholeheartedly apologise for mine and my staff’s actions and please believe me when I say I am trying my best to put right the wrongs.

“I also apologise for bringing negativity on the landlord community, I only hope I can make things right as quick as possible. Dan.”

Lets hope Dan keeps his word and I am sure as a professional "hmm"he is aware under the 2011 Localism Act [deposit revisions to 2004 housing act] the person deemed to be holding the deposit [the Agent] may be sued by the Tenant  for upto three times the deposit for failing to comply with deposit protection ;this applies up to 6 years after the tenancy has ended.

 

Sadly should the tenants be unable to seek compensation from Dan then the landlords will be liable  because the only reason the tenants paid the deposit in respect of the tenancies [property] was because the landlords appointed the agent  to represent them.

What will happen to creditors if  Dan enters IVA, Debt relief order or Bankruptcy