Deposit protection with section 21 issue?
3 years ago | 15 comments
Late deposit protection?
12:03 AM, 27th June 2023, 3 years ago
44
Hello, I’m a new landlord with one property. Can Property118 readers please advise I have not put the deposit in a protection scheme as I didn’t know about these schemes.
Is it better to return the deposit as I don’t want to get penalised at a later date if something goes wrong? I’m hoping my tenants will stay for a few more years.
Any advice would be very much appreciated,
Sandra
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Member Since February 2017 - Comments: 62
6:54 PM, 28th June 2023, About 3 years ago
And according to the government its not a business hmmm, does Sandra hand it back or get it protected?
Member Since March 2023 - Comments: 1506
7:56 PM, 28th June 2023, About 3 years ago
I would hand it back, as you have passed the LEGAL limit of 30 days to protect the deposit I think protecting it now won’t make any difference to the legal standpoint – you didn’t comply. As the judge would say, ignorance of the law is no excuse.
Member Since September 2022 - Comments: 198
8:01 PM, 28th June 2023, About 3 years ago
To add to my previous threads even if you give deposit back (which leaves you exposed to any possible thing going wrong) they (the tenant) can still request compensation up to 3 times the amount. Whatever you guys say….it’s against the law to retain deposit. NO EXCUSES NO EXCEPTIONS.
Member Since November 2020 - Comments: 134
8:04 AM, 1st July 2023, About 3 years ago
Hopefully you have already notified HMRC of this source of income, in which case they will issue you with a UTR (Unique Tax Reference) and very likely will require you to complete a Self Assessment Tax Return.
Member Since October 2021 - Comments: 30
8:42 AM, 1st July 2023, About 3 years ago
Reply to the comment left by Sandra at 27/06/2023 – 12:25
Sadly don’t trust family or friends
Treat the tenant like a TENANT else you will be screwed
5 years down the road the rules will be crazy out of date and who knows rhyme may become sitting tenants the way the legislation is changing ???
Member Since June 2021 - Comments: 80
8:46 AM, 1st July 2023, About 3 years ago
Reply to the comment left by Sandra at 27/06/2023 – 12:22
National Residential Landlords Association NRLA – a wealth of information and help when something like this crops up. All landlords should be a member of this association
Member Since June 2022 - Comments: 6
8:57 AM, 1st July 2023, About 3 years ago
Reply to the comment left by Sandra at 28/06/2023 – 08:34
You can get right to rent booklet (to download) and links to deposit from gov.uk.
Member Since June 2023 - Comments: 14
9:21 AM, 1st July 2023, About 3 years ago
Reply to the comment left by SimonP at 01/07/2023 – 08:04
We have employed an account to deal with tax.
Member Since June 2023 - Comments: 14
9:22 AM, 1st July 2023, About 3 years ago
Reply to the comment left by Sandra at 01/07/2023 – 09:21
Accountants
Member Since February 2018 - Comments: 26
10:31 AM, 1st July 2023, About 3 years ago
As others have said – you need to have gas safety certification if there is gas at the property – this is absolutely vital. You also need an electrical certificate and an Energy Performance Certificate. Does the local authority operate a compulsory licencing scheme? You need to check this out.
Be careful out there….