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

                              Working...
                              X