Our tenants have had their tenancy agreement renewed 4 times in four years.  When it was first set up and their deposit was taken by the Estate Agent the Protected Deposit Scheme did not exist and we have not altered it at each renewal.  Should we have?

Hi

Our tenants gave notice to quit in writing to me personally and should have left on 8 June.  However, they told the Estate Agents but not me  that they intended to move out end of June and the property was marketed with availability end of June.  Quite a surprise to me but I let it go after speaking with the Estate Agents.  At the beginning of June we found tenants to move in at the end of the month and I dropped a letter round to inform them.  As I did not hear from them on this subject I assumed all was ok and went round on the 24 June to organise their exit inspection.  They told me they wouldn't now move out until 1 August as their house purchase wasn't complete.  I was horrified as our new tenants had already given notice to quit their existing property.  On top of this they would have paid more rent on a 12 month contract.  I even offered them another place to stay rent free for one month, but they refused saying it would take time and money to move twice.  Shortly afterwards I got a letter from their solicitor saying I had to leave them in peace etc until the end of their tenancy and that I had to give written notice before inspecting the property.  The tenants had failed to mention to their solicitor that they had given me their notice to quit.  I had spoken to them initially but when they refused to budge I just put them in contact with the Estate Agents.  The solicitor's letter says they will not move out until 1 September at the end of the shorthold tenancy.  I am so annoyed and am extremely worried that they will not pay the last months (August) rent and leave me with loads of bills and a damaged property.  If I engage a solicitor it will cost me £300 plus with no guarantees on our wonky justice system that I will win.  They have been in residence for 4 years and their deposit is not protected.  Can I serve a notice myself without going through a solicitor?  I cannot see which one would apply in my case, they all seem to talk about rent arrears, which has never happened. 

Oh and that's another thing, do I reject any rent they now try to pay?  By accepting it (although how I will pay the mortgage otherwise I don't know) am I accepting their continuing tenancy?