Late deposit protection?

Late deposit protection?

0:03 AM, 27th June 2023, About 11 months ago 44

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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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Comments

cashcow

18:54 PM, 28th June 2023, About 11 months ago

And according to the government its not a business hmmm, does Sandra hand it back or get it protected?

GlanACC

19:56 PM, 28th June 2023, About 11 months 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.

RoseD

20:01 PM, 28th June 2023, About 11 months 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.

SimonP

8:04 AM, 1st July 2023, About 11 months 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.

Hitesh

8:42 AM, 1st July 2023, About 11 months 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5 years down the road the rules will be crazy out of date and who knows rhyme may become sitting tenants the way the legislation is changing 👍🏼😂

David Judd

8:46 AM, 1st July 2023, About 11 months 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

Carole Stanton

8:57 AM, 1st July 2023, About 11 months 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.

Sandra

9:21 AM, 1st July 2023, About 11 months ago

Reply to the comment left by SimonP at 01/07/2023 - 08:04
We have employed an account to deal with tax.

Sandra

9:22 AM, 1st July 2023, About 11 months ago

Reply to the comment left by Sandra at 01/07/2023 - 09:21
Accountants

Paul B

10:31 AM, 1st July 2023, About 11 months 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....

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