Deposit incorrectly handled

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Deposit incorrectly handled

    Hi everyone

    I have rented out a house in 2016 and didn't put the deposit in a safe deposit scheme. I am aware now I am in breach of the rules and I would like to try and resolve the problem without being fined.

    It was a 12 months AST, and it has expired now. I'm thinking of asking the tenant to sign a new tenancy agreement. The question is:

    - If the tenants agree to renew, shall I give the deposit back to them, and ask them to pay it again, and put in the SDS
    - Or is it okay if I just move the deposit into the SDS shortly after the new contract is signed, without giving it back to the tenant first

    Thanks

    #2
    Return deposit TODAY and pray to such God you may have - or none - that they don't sue you for the penalty they will get of between 1 & 3xdeposit for your ignoring the over 10 year old law. They have 6 years to do so from when you should have protected.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      I'd be tempted to protect the deposit against the new tenancy and give the tenant the prescribed information.
      Giving the tenant the deposit back is a sure fire way of alerting them to the problem.

      If you ever want to serve notice (s21) you'll need to return the deposit then.
      And the tenant (as above) has six years from 30 days after the start of the first tenancy to sue you - and, if they use a no win no fee solicitor it's going to cost you a lot of money.

      I don't think there's much difference in the potential penalty between protecting it or and returning it once you realised your mistake.

      That's a very expensive mistake to have made - you might want to check that you've done everything else you should have, there's a lot of prescribed documents you have to give tenants at the start of a new tenancy, for example.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Originally posted by mallouk View Post
        I would like to try and resolve the problem without being fined.
        theartfullodger suggestion of praying is about the only way that's likely to happen I'm afraid....

        You can protect it correctly within 30 days of any new tenancy and that will fix the ongoing issue (but not the potential penalties), or return it.
        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

        I do not answer questions through private messages which should be posted publicly on the forum.

        Comment


          #5
          Originally posted by jpkeates View Post
          I'd be tempted to protect the deposit against the new tenancy and give the tenant the prescribed information.
          Giving the tenant the deposit back is a sure fire way of alerting them to the problem.
          Do this. Start a new tenancy, tell the tenants that there are new regulations and you need to serve them all the required paperwork. Return the deposit and recollect it again from them. Do it all correctly this time.

          And as said, pray that the tenants don't come across any newspaper articles or suchlike alerting then that they may have a claim for the old tenancy...

          Comment


            #6
            Tenants may be viewing this thread....
            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

            Comment


              #7
              T can sue for unprotected deposit for 6 years from date it should have been protected. Ts now have an SPT, you cannot 'force' them to sign a new AST against their Will, & they could claim for non-protection for both original AST & SPT, but with luck Judge may only award 1 Penalty of 3x deposit.

              Comment


                #8
                I know with one of my current tenants he'd been in the property over a year and then I realized about the protection. I just made sure I was extra nice to him and when it came to renewal time I was upfront and said look there's all these rules and regulations so here is someone paper work for you to keep and sign and print here to say you received them. He wasn't bothered and I said its for his protection. If you think your T is a reasonable person might be worth being upfront with them? I think JP is right

                Comment


                  #9
                  Originally posted by security2 View Post
                  tell the tenants that there are new regulations...
                  er, but there aren't, and that might not look good if it does end up in court.

                  Comment


                    #10
                    Funny seeing Landlords **** ups and doing anything not to pay......if it was the tenant on the other hand lol.

                    Wish the tenant reads this and sues you then moves on because of your little sneaky way of covering up your inability to fulfil your legal requirements as a Landlord.

                    Comment


                      #11
                      Whats it like living with fhat level of bitterness Kammy?

                      Comment


                        #12
                        Must be hard. But it's made me want to exercise caution if someone with a child under the age of one and a desire to decorate applies to rent one of my properties!

                        Comment


                          #13
                          It's so wonderful all landlords hereabouts are always prudent, law-abiding & adult
                          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                          Comment


                            #14
                            Originally posted by DPT57 View Post
                            Whats it like living with fhat level of bitterness Kammy?
                            Not bitter.


                            ​​​​If a tenant did something of this magnitude all of you lot would be throwing up S21's in no time.

                            Comment


                              #15
                              Not necessarily, not all. Some posters hereabouts are not landlords (agents, tenants, advisers, solicitors....). Not ALL landlords would certainly react as you assert.
                              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                              Comment

                              Latest Activity

                              Collapse

                              • Reply to Mould/witholding rent/C19 eviction rights
                                by jpkeates
                                If there's mould in the property it almost has to come from condensation inside.
                                The (alkaline) lime in the plaster and the acid in the mortar mean that water coming from outside doesn't usually allow mould to develop.

                                Mould forms when water that condenses on the surface is left there....
                                03-06-2020, 22:23 PM
                              • Mould/witholding rent/C19 eviction rights
                                by Borischelski
                                I wonder if I could trouble someone for advice, having recently become a Landlord for the first time ?


                                BACKGROUND
                                A year ago I inherited a small 1970s one bedroom flat in Birmingham.


                                The flat was originally heated with a couple of electric bar heaters....
                                02-06-2020, 09:37 AM
                              • Reply to Leaving before s21 notice expires?
                                by jpkeates
                                I don't have any idea how this is meant to work.
                                But, the only people who really matter are the landlord and the tenant.

                                The agent works for the landlord, and if they've found themselves in a conflict if interest, have to resolve it in favour of the landlord.
                                They'll never accept...
                                03-06-2020, 22:12 PM
                              • Leaving before s21 notice expires?
                                by Kj47
                                I have received a s21 notice to leave at the end of August (this includes the current extended 3 month covid19 period). I wish to leave the property early as I have now found another property to rent but this can only be ‘held’ for a period of 2 months by the letting agent. I have asked if I can...
                                03-06-2020, 17:41 PM
                              • Reply to getting evicted - but no paperwork
                                by jpkeates
                                Yes, the courts are still just about functioning, so a money claim is still possible, if unlikely.
                                If a landlord came here seeking advice about a tenant in arrears, I would suggest a money claim rather than a possession claim, in the first instance.

                                However, tou should still receive...
                                03-06-2020, 22:09 PM
                              • getting evicted - but no paperwork
                                by beryl
                                I have today been told that I am getting evicted and that there is a hearing next week.
                                But I haven't received any Court papers, no notice to quit, no section 8, or section 21.
                                I don't even know how this is possible as I thought there was a ban on eviction hearings.
                                I owe rent yes,...
                                03-06-2020, 17:32 PM
                              • Reply to getting evicted - but no paperwork
                                by Jon66
                                Yes if they have claimed for it, but it depends on what basis the possession proceedings are made. I don't think there was sarcasm, just a character. Artfuls comment re benefits is referring to himself, and he gave good advice re shelter. And some landlords are bad we know that, but I'm not one of the...
                                03-06-2020, 21:58 PM
                              • Reply to getting evicted - but no paperwork
                                by beryl
                                Jon66: there were sarcastic responses from a person further up. It's there to read.
                                I did contact CAB and my local council. I told my landlord in 2014 there was a leak, nothing done. Same again in 2017, 2018. Told in 2019 bath tub was dangerous, don't bath, nothing done by LL. At that same...
                                03-06-2020, 21:43 PM
                              • Reply to getting evicted - but no paperwork
                                by Jon66
                                Contact the court and ask them....
                                03-06-2020, 21:24 PM
                              • Reply to getting evicted - but no paperwork
                                by Jon66
                                Who has been sarcastic, I can't see any sarcastic responses? If you seek advice on a public forum you will receive an array of responses.

                                The fact is, there is a way of dealing with disrepair issues, the law exists, but you have stopped paying rent and don't appear to have sought help to...
                                03-06-2020, 21:23 PM
                              Working...
                              X