Unprotected deposit 30 day notice period fail

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

    Unprotected deposit 30 day notice period fail

    I have recently retired and have taken over managing the letting of my properties, prior to my retirement I used a letting company to manage the lettings and maintenance on my behalf. I have just discovered that although the deposit was deposited into the custodial Deposit Protection Scheme, the management company did not notify the tenant within the 30 days and so, as I understand it, prevents a Section 21 notice from being upheld (I don't actually want to serve a Section 21, simply to get the deposit compliant). What makes the situation even more irritating is that the management company has been bought out by another management company, who have no record of the paperwork.

    Is there something I can do when we come to renew the tenancy agreement in order to make the deposit compliant? I was thinking of asking the tenant to sign some sort of waiver or something?

    #2
    Originally posted by BournemouthLandlord View Post
    Is there something I can do when we come to renew the tenancy agreement in order to make the deposit compliant? I was thinking of asking the tenant to sign some sort of waiver or something?
    You can serve the prescribed information at any time, but it can't remedy the previous omission. I doubt any waiver could be binding/enforceable, and asking for one will only draw the default to your tenant's attention, probably.

    Comment


      #3
      Yes, return it, today: Or offer tenant a new, different tenancy (eg lower rent.. he'll sign) and then protect it.

      But in both cases tenant can sue you (yes you!) for up to 3xdeposit. Parliament has granted them that right, and renewed the grant of rights when the original 14 days was extended to 30 days.
      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


        #4
        The only remedy to allow you to EVER issue a section 21 is to return the deposit to the tenant.

        This won't prevent them from ever suing you for a probable penalty but will prevent problems in eviction if you ever need to do so.

        I would gather as much evidence as you can in respect of the agents failure in so that if it does ever go to court the judge may be more lenient.

        Unless a tenant goes looking for the information or has reason to do so then they are unlikely to raise an issue.

        I'd be inclined to do nothing if they show no signs of being a "bad tenant" and you don't want your property back.

        Comment


          #5
          If they are decent tenants, I would be inclined to keep very very quiet, and say absolutely nothing at all (and keep your fingers crossed). Especially since you don't actually know what the tenants might have been given.

          The law is designed to do what it has done -- entrap (probably) good landlords like you while doing sweet blow all to deal with rogue landlords. It has done its job. It has created risk and confusion, and costs which get passed onto renters and into the hands of lawyers.

          Next time --- etch this onto your forehead -- DO NOT LET AN AGENT PROTECT A DEPOSIT ON MY BEHALF - EVER - I GET THE MONEY AND I PROTECT IT. IF THE AGENT INSISTS (I WILL MAKE SURE I READ MY AGREEMENT BEFORE ENGAGING THEM) I WILL TELL THEM TO GET STUFFED.

          Comment


            #6
            I think all the ridiculousness of fines etc has taught us a landlord with only one property to not even take a bleeding deposit!.

            We only took 400 pound anyway which is a dip in the ocean towards the rent arrears and court costs our tenant will have accumulated before this is over.

            Any damage to the property will just be added to our already increasing losses. A deposit just doesn't seem worth it anymore

            Comment


              #7
              Originally posted by Wright76 View Post
              I think all the ridiculousness of fines etc has taught us a landlord with only one property to not even take a bleeding deposit!.
              We only took 400 pound anyway which is a dip in the ocean towards the rent arrears and court costs our tenant will have accumulated before this is over.
              Any damage to the property will just be added to our already increasing losses. A deposit just doesn't seem worth it anymore
              Quite.

              Tell tenants instead that you (while not taking a deposit) will up the rate of rent by £60 per month on an initial 6 month fixed term.
              If they decide to stay beyond 6 months and if things are going well, you will probably not increase the rent at that point and for at least the next year after that. You may even decide to decrease the rent at that point if everyone is happy. Explain that (in the absence of a deposit) if rent is outstanding or if damages are caused you will use legal proceedings to get recovery if there is no resolution through dialogue, but it should obviously not come to that.

              Comment


                #8
                Very sound advice thankyou. Just need to get this tenant out and we can put that in force with the next one!

                Comment


                  #9


                  Is it just me and StuartH who interpreted the original post as saying that the deposit was protected in time, but that the PI was not served in time or at all? If that is indeed the case, why are respondents suggesting that the deposit need to be returned?

                  If the deposit was indeed protected in time, then as StuartH said, the PI can be served late, so long as it is before any s21 notice and the notice would be valid. What that doesn't change is the liability for penalty for the earlier non-compliance. If this is done before the tenancy is renewed for a new fixed term, then you should be deemed complied for the new tenancy.

                  If you want to wait, you can serve the PI within 30 days of any renewal as well.
                  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


                    #10
                    I agree that there is no need to return the deposit and if the PI is served at any point before a s21 notice is served it should be valid.

                    What might be sensible when renewing the tenancy agreement is to routinely "reserve" the PI, the How to Rent booklet, the EPC and any Gas safety certificate.
                    That makes it look like a good bit of admin, rather than admitting there was an issue (you could even use the excuse that the agent has changed hands and you "just want to make sure the tenant has everything they need".

                    As you don't intend to serve notice, all might be well.
                    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


                      #11
                      Oops! My bad,sorry OP
                      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


                        #12
                        Hi everybody, glad I found this post, I am just going through the very same issue, Thought I had done everything right by protecting the deposit, with DPS, thinking they let the tenants have the info they, needed, silly me , not until yesterday after speaking to an eviction agent did I realize I needed to provide the Prescribed information, what I did was to get a form off DPS website and fill it in and take it to the tenant , telling her she would need this information to claim her deposit back, and I got her to sign it, I am hoping I can now issue her section 21 when needed, I also saw somewhere, that although 85% of landlords are protecting deposits, only @ 75% are giving their tenants the prescribed information. So its not only me. lesson learnt, busy now getting the info to my other tenants.

                        Comment


                          #13
                          Thank you all for your replies. It seems like the consencus is as I suspected - give back the deposit and budget for a potential 3x claim. Hardly seems fair given that I delegated management to a third party. Oh well, you live and learn, Im definitely going to be managing the lets myself in the future.

                          Comment


                            #14
                            As I stated above, you only need to give back the deposit, for the purpose of being able to serve a s21 notice, if it were either never protected or protected late. If it were protected in time, you can serve the PI late, i.e. now.

                            On the budgeting for a penalty side, yes.
                            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


                              #15
                              Since you are now managing your properties, I recommend joining NLA/LA for various free Member offers, inc Distance Learning Training Modules for LLs. (~£100 pa, tax deductible).

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X