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The tenants have to give you proof that the accounts are closed before they get their deposit back.
They could try complaining about this but it’s a pretty reasonable precondition.
I suppose the problem becomes what happens if an agency handle that and make a pigs ear of it...I’d want that under my control for good reason.
How easy would it be to get that info? Does a landlord have the legal right to get council tax and bills status of their tenants?