Deposit found not deposited in 2010?

Deposit found not deposited in 2010?

13:39 PM, 23rd February 2021, About 10 months ago 9

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A long story that involves taking over a property by default, and after some triple checking, I’ve just found out that a deposit a tenant paid in 2010 was not deposited in a scheme at the time (were they even around then?)

What’s the best approach now – 1. leave the status quo, ignore it (tenant is fine, great relationship)

2. Deposit it now (as a result by definition showing the tenant it has not been to date – a worry).

3. Something else???

Thanks

Reluctant Landlord



Comments

by Neil Patterson

13:42 PM, 23rd February 2021, About 10 months ago

Hi Reluctant >> https://www.gov.uk/tenancy-deposit-protection

Your landlord must put your deposit in a government-approved tenancy deposit scheme (TDP) if you rent your home on an assured shorthold tenancy that started after 6 April 2007.

by DSR

14:08 PM, 23rd February 2021, About 10 months ago

Reply to the comment left by Neil Patterson at 23/02/2021 - 13:42
I am the LL, so if I deposit it now (it is well past the period it should have been deposited) is the liability the same if I do it late/don't deposit at all?

by The Forever Tenant

15:49 PM, 23rd February 2021, About 10 months ago

Reply to the comment left by RL at 23/02/2021 - 14:08
The liability is the same, but if it goes in front of a judge there may be the question of why you didn't deposit it at the earliest opportunity if you chose not to.

Though after 10 years, I'm not sure there is going to be much that can be deducted from the deposit once they leave. You could also consider just straight up returning the deposit to the tenant in full right now.

by David

18:22 PM, 23rd February 2021, About 10 months ago

The statute of limitations is 6 years, so I don't think the tenant will be able to bring a penalty claim for non-protection.

by Kate Mellor

9:14 AM, 24th February 2021, About 10 months ago

As David says, there are no longer any financial penalties which can be applied to you because the statute of limitations time period is 6 years from the date that the deposit SHOULD have been protected. The only downside now is that you are unable to evict using section 21 unless you first return the deposit. In your situation what I would do is tell the tenant you would like to renew the tenancy so that the tenancy is in your own name rather than your predecessor. If your tenant is reluctant you can offer to renew it on a monthly periodic basis with no fixed term, so they are not locked in. You can then carry out ALL the correct requirements. Just be aware you will need to write to the tenant explaining that you will use the existing deposit for the next months rent and use their next payment for the deposit so you can show you have protected within one month of receipt of funds.

by DSR

9:30 AM, 24th February 2021, About 10 months ago

Reply to the comment left by Kate Mellor at 24/02/2021 - 09:14
Thanks for the advice everyone. I think I will leave it all as is. The tenant is long term - he's been there 21 years in total and he has has absolutely no intention of leaving and we have a great relationship. Elderly chap no relatives as far as we know, keeps the place ok.
We bought the property with him in situ. S21 is on its way out so I'm not bothered about meeting that requirement.

by Robert Morse

9:39 AM, 24th February 2021, About 10 months ago

My book keeper forgot to deposit my tenants bond 1 year ago. I have returned the money but tenant has not cashed the check and not signed a new ast. What do I do as she has not paid rent. ?

by Kate Mellor

10:57 AM, 24th February 2021, About 10 months ago

I believe that if you can prove you’ve repaid the money by cheque it doesn’t matter that the tenant hasn’t cashed it. You will of course be liable to any penalties the judge might award if your tenant counter-claims against you for failing to protect & issue prescribed information. You would then have to claim against your bookkeeper yourself, but do you have an agreement in writing stating that they will take responsibility for that duty? If not is it something they’ve done for you for EVERY previous tenancy? It could prove costly. This is a terrible time to have a non-paying tenant. Issue S8 & S21, but you should probably take advice from a tenancy expert to avoid any mistakes.

by Robert Morse

13:56 PM, 24th February 2021, About 10 months ago

Reply to the comment left by Kate Mellor at 24/02/2021 - 10:57
Thanks for your reply.


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