New Landlord help needed please

New Landlord help needed please

8:46 AM, 19th August 2014, About 10 years ago 35

Text Size

Dear Members,

This is my first post so please be gentle. I am not a landlord myself but write on behalf of my daughter who is a new landlord.

She purchased the house next door to us after separating from her first husband. After a while she met somebody else and eventually married her new man and moved into the house he owns. When she purchased the property house prices were at the very best, since then house prices have dropped which would have meant had she decided to sell at the time she would have lost around £20,000, so she decided to rent her property out until house prices began to pick up again then possibly sell the house.

This is where the problems start. Not knowing the complex laws regarding property letting she let the house to a lady with a child. The lady gave a bond of £350 when she moved in and is paying £500 per calendar month rent. After numerous problems with this lady my daughter has decided to ask her to leave the property and issued her with a section 21 notice.

When the tenant paid the £350 bond my daughter was unaware that she had to put the bond into a bond scheme, naïve on her part I know but she just didn’t know about it. Anyway, since the section 21 notice was issued the tenant has gone to the local housing advice centre who has told her the section 21 notice is invalid because the bond was not placed in a scheme. I must point out that there is no problem with the bond being returned to the tenant at the end of her tenancy. New Landlord help needed please

Since all this my daughter has placed the bond into a holding scheme. Also the tenant has advised my daughter that she intends to move out on the 14th September so can somebody tell me what to do, has the local housing association got any power to intervene, is my daughter in big trouble or do we just leave it until the tenant moves out then give her her bond back.

Any advice would be gratefully received

Many thanks

Graham


Share This Article


Comments

Mark Alexander - Founder of Property118

21:25 PM, 24th August 2014, About 10 years ago

Reply to the comment left by "Grayo Athome" at "24/08/2014 - 21:10":

It does indeed, now you have a plan 🙂
.

Grayo Athome

21:33 PM, 24th August 2014, About 10 years ago

Reply to the comment left by "Mark Alexander" at "24/08/2014 - 21:25":

That's what I like a plan lol. So when she leaves on the 14th she will have her bond back but before she will have to sign your Surrender of Tenancy Agreement. My daughter has it in writing (letter) that she intends to leave on the 14th.

I can download your surrender of Tenancy Agreement Mark but will there be any need to alter it or use it as it is.

Many thanks

Mark Alexander - Founder of Property118

21:39 PM, 24th August 2014, About 10 years ago

Reply to the comment left by "Grayo Athome" at "24/08/2014 - 21:33":

It's a simple template, easy to amend as necessary. You will see for yourself when you download it.
.

Grayo Athome

21:43 PM, 24th August 2014, About 10 years ago

Reply to the comment left by "Mark Alexander" at "24/08/2014 - 21:39":

Brilliant thank you Mark. Off to download it now.

Grayo Athome

22:24 PM, 24th August 2014, About 10 years ago

Reply to the comment left by "Grayo Athome" at "24/08/2014 - 21:43":

Hi Mark,

Don't quite know what I'm going to do with the bit about the deposit ??? but apart from that it's brilliant. Has the forum got a personal message system by any chance.

Mark Alexander - Founder of Property118

22:32 PM, 24th August 2014, About 10 years ago

Reply to the comment left by "Grayo Athome" at "24/08/2014 - 22:24":

Sorry, there is no PM system.
.

Grayo Athome

22:37 PM, 24th August 2014, About 10 years ago

Reply to the comment left by "Mark Alexander" at "24/08/2014 - 22:32":

Ok no problem. Have you any suggestions what I can do about the deposit My/Deposit section as you know from above the deposit/bond was not put into a deposit scheme within the 30 day requirement. I can't see her signing the document with that section included.

Mark Alexander - Founder of Property118

10:21 AM, 25th August 2014, About 10 years ago

Reply to the comment left by "Grayo Athome" at "24/08/2014 - 22:37":

I am not a lawyer and I have not run the following past my barrister friend. Accordingly, I cannot guarantee this will work if the matter does go to Court but it might, and I suspect it will reduce the risk of the tenant taking the matter to Court and in any event it is likely to severely hamper the chances of the tenant being able to find a no-win-no-fee lawyer to act.

It is acknowledged by the Landlord that the Tenants paid a Deposit of £350 and the Tenants acknowledge that this deposit was protected by the Landlord in the XXXX scheme (the Deposit) and that a Deposit Protection Certificate and prescribed information was issued outside the statutory 30 day period.

The Tenant acknowledges that the deposit has been refunded in full by the landlord as at the date of this Tenancy Surrender Agreement.

The Landlord has released all claims on the Deposit

The Tenant has waived the right to make claims being against the Landlord in respect of the late protection of the Deposit and issue of prescribed information and deposit protection certificate and in any event the Tenant has assigned to the Landlord the benefit of the chose in action against the Landlord by the Tenant.

Effectively what this says is that the tenant has agreed not to take you to Court but if that promise is broken any compensation awarded to the tenant as a result of doing so now belongs to you, thus making it seemingly pointless for the tenant to take you to Court. It is now up to you daughter to negotiate a sufficient incentive for the Tenant to sign the agreement. For example, your daughter could repay the deposit plus £X. If your daughter decides to play hard ball on any matter such as damages it is less likely that her tenant will sign the agreement. Accordingly, a commercial decision needs to be taken by your daughter. She can sue for arrears and/or damages but she needs to weight this up against the value of the claim that her tenant has against her in respect of failing to protect the deposit and also the hassle factor associated with going to Court.
.

Farah Stehrenberger

16:54 PM, 25th August 2014, About 10 years ago

I suggest to remove this part:

and the Tenants acknowledge that this deposit was protected by the Landlord in the XXXX scheme (the Deposit) and that a Deposit Protection Certificate and prescribed information was issued outside the statutory 30 day period.

and then change the para below to suit your requirement:

The Tenant has waived the right to make claims being against the Landlord in respect of the late protection of the Deposit and issue of prescribed information and deposit protection certificate and in any event the Tenant has assigned to the Landlord the benefit of the chose in action against the Landlord by the Tenant.

I have copied both paras from Mark's message.

Grayo Athome

22:49 PM, 25th August 2014, About 10 years ago

Reply to the comment left by "Farah Stehrenberger" at "25/08/2014 - 16:54":

Thank you both for your replies. My head is spinning at the moment as I have been at the hospital for the last 24 hours with my 86 year old mother who fell down the stairs last night and has suffered a broken neck. She is paralysed from the waist down and will be very lucky to survive this terrible fall.

I thank you again but can't get my head around this at the moment.

Graham

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now