Help! I didn’t protect the tenancy deposit

Help! I didn’t protect the tenancy deposit

9:46 AM, 31st October 2022, About A year ago 38

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Hello, We let our property to a couple with a baby in 2019, with 90% of their rent paid by the council through a housing benefit.

They immediately fell into arrears, not paying the rent at all, so the council told me they would pay the 90% direct to me. Since then the 10% payments have been erratic and they are now around £1,000 in arrears.

Mutually, we would all like them to move out. I need to do some refurbishment, and they are now overcrowded. Another child was moved in without my knowledge – not a baby – and also a large dog. It’s a 2 bed flat.

I now want to just sell the place.

They want to go somewhere bigger, and have got themselves on the list for a council property, but this could take years. I thought an eviction would help them to get bumped up the list, and I considered an s8 as they aren’t supposed to have a dog, and are in arrears, but I chose instead a s21.

I issued one, but the council have asked for the tenancy deposit receipt. [And a how to rent leaflet]. The problem is, and I’m of course in the wrong here, as an amateur, I didn’t protect the deposit.

I’ve returned it to them by bank transfer to try to draw a line under this, but they have been to citizens advice who is advising them to take me to court.

I’m not sure how this will help them find a new home, and she said she doesn’t want to go down that route. And now she’s asked me for a £20 loan.

I am now not sure what to do. They want to leave, but cannot, and they cannot afford a larger private rental.

How is this going to end? My gut says “badly”.

Any advice please?

Kate


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Comments

Julie Ford

12:57 PM, 1st November 2022, About A year ago

Reply to the comment left by David Houghton at 01/11/2022 - 09:19
HI David, i'm afraid this is not correct. Not protecting the deposit is covered under statute of limitations and the tenant only has 6years from the date of the original breach to make a court claim. Repaying the deposit doesn't remedy the breach.

Maureen Boyle

13:02 PM, 1st November 2022, About A year ago

ÀMiss M
Try to avoid the court as you could be liable to pay them up to £5000 for not protecting their tenancy.Always give the full paperwork and there's quite a lot of it.My advise to join a landlords ads. It's probably only about £30 or year and it's well worth it.We all make mistakes first going off but it is in your favour that you and them should have a copy of everything.What part of the country are you in?

David Houghton

19:45 PM, 1st November 2022, About A year ago

Reply to the comment left by Seething Landlord at 31/10/2022 - 22:48
Thanks for the update. Must have missed that one. Glad I always protect mine straight away

Seething Landlord

20:16 PM, 1st November 2022, About A year ago

Reply to the comment left by David Houghton at 01/11/2022 - 19:45
You're welcome ☺️.

Nick shafi

7:39 AM, 2nd November 2022, About A year ago

I would advise to end sec21 and accept
The 90% rent. If you do this you can restart a new AS tenancy. Explain to tenants that your doing this because of the rent reduction needs to be written in
Lodge new deposit even if you pay out of your pocket.

Wait 6 months to serve notice.
By far best advice I can give you as I've been in this situation is stay well clear of the courts. Bunch of idiots only interested in tenants rights.
Offer the tenant cash to leave,and help with the rehousing with supporting letters etc, but no legal stuff, just try and work with them to get them out asap.
Money is a big incentive for all of us but has to be done right. Talk to your tenants
And then make the offer.

Rod

12:27 PM, 5th November 2022, About A year ago

It looks like Kate is not the only person who has learnt something from this unfortunate case.
Some of you have already pointed out that membership of a landlord association and basic accreditation training would help all landlords understand their responsibilities and where the legal hurdles are.
Don't forget that finding an agent, even the best you can find, does not absolve a landlord from ultimate responsibility.
If you use an agent, they should provide you with evidence that they have carried out the relevant compliance and other tasks. After all, things change; you might decide to use another agent or choose to self-manage the existing tenants at a later date and will need to evidence that compliance was carried out at the commencement of the tenancy and as required throughout the tenancy.
iHowz have some basic free guidance for all landlords, with more detailed guides, check lists and updated agreements in the members section, to help you get things set up correctly. They also offer good value accreditation training.
Like many landlords, we have not put our prices up for many years but with cost increases, including our campaigning on MEES/EPC, S21 and the White Paper we will be putting up membership prices from the end of the year.
See what we offer here
https://ihowz.uk/
then click the JOIN button to take advantage of a year's membership
Where else will you get a year’s advice for just £75 with additional benefits that include:
Free Landlord Advice Line
All Required Documents
Regular Legal & Regulatory Updates
Discounted Property Insurance
Free Tax Investigation Insurance (worth £250)
Weekly #ihowznews Articles
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reader

17:21 PM, 5th November 2022, About A year ago

Dear Kate,
You can register their deposit now and no doubt issue them with the booklet too. It may not prevent an action against you but could enable you to restart S21, take a spot of advice on that. Also if you are in error can limit the legal costs on both sides by taking a number of procedural steps early, a good solicitor could advise you. What you do not want is to let the case run on and on while solicitors on both sides build their profit costs at your expense.

David Houghton

17:24 PM, 5th November 2022, About A year ago

Reply to the comment left by at 05/11/2022 - 17:21
There's also Part 36 CPR offers. These can limit your exposure to solicitors costs if you act at the first instance

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