Tag Archives: Deposit Protection

Capita TDP to be taken over by MyDeposits Landlord News, Latest Articles

The Capita TDP (Tenancy Deposit Protection scheme) has been closed to accepting new deposits since the 14th of September this year.

Capita a corporate giant and FTSE 100 company was only awarded the contract by Government to operate the scheme from the 1st April 2013 (no pun intended) in an effort to increase competition and drive down costs for this service. Mydeposits has however stepped in to take over responsibility for Capita TDP protections in England & Wales after confirming their withdrawal from the market.

All of Capita TDP’s existing deposit protections will be automatically transferred to mydeposits from 1st December 2013. Landlords, agents and tenants in England &Wales will also have access to the scheme’s dispute resolution service. Capita TDP has now written to all existing members informing them of the news.

All transferred deposits will continue to be protected throughout the duration of the fixed term tenancy. my|deposits will also reissue a new Deposit Protection Certificate (DPC) and the relevant Information for Tenant’s leaflet for each protection.

Eddie Hooker, CEO of mydeposits, said: “Capita TDP’s existing landlord and agent members can rest assured they’re in safe hands with mydeposits. The experience and knowledge we derive from partnership with the both the National Landlords Association (NLA) and the UK Association of Letting Agents (UKALA) means we’re well placed to manage the handover following Capita’s withdrawal.”

“Landlords, agents and tenants will also have access to our free award-winning dispute resolution service, giving them peace of mind that the deposit will be returned fairly if they’re unable to reach an agreement over its return.”

“We’re on hand to speak to existing Capita members who have concerns regarding the transfer of their deposits. Landlords, agents and tenants can also visit our website www.mydeposits.co.uk where they can find details of the scheme and a range of useful guidance and advice on deposit protection issues”.Capita TDP


Has Capita thrown in the towel on Tenancy Deposit Protection? Latest Articles

Capita Tenancy Deposit Protection is no longer accepting new deposits with effect from 14th September 2013.

Any deposits registered with the scheme will continue to be protected unless otherwise notified.

Landlords, agents and tenants who are affected have been notified in writing.

If you have any queries, please call 08444 129968 or email: info@capita-tdp.co.uk

The above is the message currently showing on their website.

Click the image below for a full screen shot

Has Capita thrown in the towel on Tenancy Deposit Protection


End of Tenancy Deposit Issues – Tenant Requests Advice From Landlords Latest Articles, UK Property Forum for Buy to Let Landlords

Hi All,

I realise this is primarily a landlords site, however nothing like hearing it from you on what will hopefully be an impartial landlord view. I like to believe I am a reasonable and honest tenant.

Background:

My landlady owns a number of properties in London (via a company). I moved in and a new AST was signed (3 bed place), as one of the previous tenants was staying it was agreed (among the tenants) the originals tenants would give £100 each (2 left, 2 came in, I was 1 of the new tenants) towards any damages that they have caused. So there was no official “check-out” for them (they were paid their deposit back in full by the landlady).
During this period the landlady placed our deposits in “insured” schemes which are OK but not great and she never dated them properly.

During the next 2 years both other tenants left any new ones came in (they swapped at different periods). New AST were created. In the interim Landlady goes into administration and the receivers stepped in. They placed our deposit into a custodial scheme.

She got out of it by selling a couple of properties and managing to refinance the remaining properties.
After she gained repossession of the property we did another tenant swap and this meant new AST and supposedly a new deposit protection scheme which we never saw (ie. she never applied for one).

Note 1: We have never missed any payments and always paid on time (for the 2.5 years I lived there).
Note 2: Landlady is still owing deposits to 2 other tenants that left almost 1 year ago (to be fair they should have applied A LOT MORE pressure but she keeps discussing different items that she wants to charge them for and delaying the process). She also seems to be dealing with them at individual level (almost as if she rent rooms out and charging for things that were never done like window cleaning).
Note 3: I took 3 days off work to make sure the property was left in excellent condition as I knew this was about to get messy (this inc professional carpet cleaners @ £115, professional cleaners suggested by her @ £135, I bought paint and brushes to make sure my room and common areas were not marked and left in pristine conditions), and paid a checkout report (although I never saw a check-in report).
Note 4: I am still liable to dispute the DPS custodial one as it was dated to finish in August (our tenancy finished in early September), however some of the names of tenants on that Deposit ID are different to the latest tenancy.

Our tenancy ended 6th Sep and the checkout report was issued 16th Sep (as inventory services agency took ages to produce the report).

Now she is doing the same to us, finding things that she maybe able to charge (including broken tile, leaking pipe, cleaning not up to standard [even though she recommended the professional cleaning company], stained sofa), given more time they will keep increasing.

Googling her name reveals some previous court cases and the cleaning company, check-out report company etc from what they told me sound as if she is the same with all her tenants in her other properties.

It obvious she does not play by the book and I have tried to be very patient and rational about all this. But to be fair to her she was patient with signing new ASTs and swapping tenants in contracts (but surely that is a saving on both sides as she does not have to market the property or have any downtime).

Questions:

  • How does she have to officially respond to checkout report and how long until we can start kicking and screaming for our deposit?
  • Given that the deposit is not in a “valid” protection scheme for the latest tenancy is there any mechanism to apply pressure? (I know landlords must place the deposits in these schemes but if they don’t they could have to pay multiples of the deposit… where can I go to talk discuss this option, I don’t want to get to this but will surely use this to keep her in line)
  • Should I dispute the deposit under the custodial scheme which has my name and 2 previous (not latest) tenants [who also have not yet seen their deposit back yet]?
  • How can I fight the several claims for several things which she wants money for?
  • Who do I go to for help on this? for example to take her to court or to dispute this end of tenancy given that it is not to my knowledge on any deposit protection scheme.

Please help, we (3 young professionals) all have 6 weeks rent tied here (not to mention 2 others who have also not yet seen their deposit back).

I appreciate all the feedback I can get. End of Tenancy Deposit Issues - Tenant Requests Advice From Landlords

I have rented different places in the UK over the last 10 years (Surrey and London), I have seen a couple of decent landlords but I have seen mostly awful ones. I do support the requirement for standards (licensing or accreditation), it is getting harder and harder to get on the property ladder and more young people will be renting for longer in the future, it is possible for landlords to keep their investments profitable and not have to play with people lives.

Many thanks

Andre


Landmark Case Shows Scottish Landlords Must Take Deposit Protection Seriously Guest Articles, Guest Columns, Landlord News, Landlords Stories, Latest Articles, Lettings & Management, Property News

A recent case in Edinburgh Sheriff Court saw a landlord who had failed to protect his tenant’s deposit fined £3,450.  This shows that landlords, and their agents, must take seriously their new statutory obligation to lodge tenants’ deposits with one of the approved schemes, and that the courts will take a robust line with those who don’t.  Unlike England and Wales, their is no insurance-based alternative in Scotland and hard cash must be handed over. 

Not only must landlords lodge the deposit within 30 days of receiving it, they must also pass to their tenant certain prescribed information –

  1. Confirmation of the amount of the deposit paid by the tenant and the date on which it was received by the landlord;
  2. The address of the property to which the deposit relates;
  3. The date on which the deposit was paid to the scheme administrator;
  4. A statement that the landlord is registered with the local authority;
  5. The name and contact details of the administrator of the tenancy deposit scheme to which the deposit was paid; and
  6. The circumstances in which all or part of the tenancy deposit may be retained at the end of the tenancy, with reference to the terms of the tenancy agreement.

The Fraser and Pease-v-Meehan case shows that enforcement of this legislation is very likely to be driven by tenants.  Because action can be taken for up to 3 months after the end of a tenancy, tenants are able to do so free of any fear of retribution.  Too many tenancies are simply ended by a landlord because the tenant has been bold enough, for instance, to insist that badly needed repairs are carried out, and changing the tenant for a more compliant one a less costly option for a landlord.  That is a fundamental weakness in renting legislation.  Deposit protection legislation allows former tenants to exercise their rights free of constraint and because of that I think we are likely to see it much more effectively enforced.

John Gell

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Ex tenant problems Latest Articles, Legal, Letting, Lettings & Management, UK Property Forum for Buy to Let Landlords

To condense the issues here goes… Ex tenant problems

Tenant on AST which ran into periodic for some two months

Tenant leaves no notice, just four page letter of complaints … staff …. other people… everything !

Worth noting at this point.. no complaints at all when in the property, just one boiler issue which was sorted asap and dealt with.

Before the tenant left we received an email from them asking who the rent money was paid to, name of landlord and where was the deposit. All of the required information was contained in the AST, Deposit Protection Certificate and Prescribed Information.

Legal for landlords had advised me that I did not need to give landlord address as I was the full acting management agent.

The tenant had found out ( I did not know) that the landlords business had been dissolved

The tenant now wants all rent back!

I have paid rent over and never had any returned!

Now the tenant taking me to court asking for some eight months barr 5 days rent back!

The company is still going ( landlord) but under a different name (not Ltd just a Partnership) which was running prior to but I paid to the Ltd company.

The tenant seems to want to sabotage my good name for no reason.

They have been left some three months now but think they can use bully tactics to convince me to part with money that was paid in good will to the landlord.

Advice is much appriciated

Thank you

Donna


Tenant Referencing Using Common Sense Advice, Latest Articles, Property Investment Strategies, The GOOD Landlords Campaign

Common sense tenant referencing was pretty much the only option available when I first became a landlord and started letting property in the late 1980’s. Tenant Referencing Using Common Sense

In this article I am going to explain what my family do to find the next perfect tenant, right from the day an existing tenant let’s us know that they want to move out. More often than not these days, tenants think they can serve notice with just a phone call, email, facebook or text message – more about that later. Continue reading Tenant Referencing Using Common Sense


How ADR works in tenancy deposit disputes Advice, Guest Articles, Guest Columns, Latest Articles

After sharing in discussions on two separate threads (links below) I realise that there is some misunderstanding about how Tenancy Deposit legislation works when there is a tenancy deposit dispute. How ADR works in tenancy deposit disputes

Buy to let anguish – landlord being repossessed – rent paid 6 months up front!

Tenant Disappeared

In the first discussion the tenant is concerned that the landlord will not repay the deposit and in the second discussion it is the landlord who is concerned that the tenant can just walk away.

Whichever type of deposit protection scheme a landlord chooses to use, either the custodial scheme at no cost or an insurance based scheme where a premium is paid, the basic rules are the same.

If the landlord and tenant cannot agree on the amount of the deposit that is returned to the tenant either has the right to raise a dispute with the protection scheme. The dispute is dealt with through Alternative Dispute Resolution (ADR) where independent arbiters make a determination based on the documentary evidence provided by both parties.

Since the money belongs to the tenant unless and until the landlord can prove that he is entitled to compensation for losses or damages the onus is on the landlord to prove his case and for the tenant to dispute it. If the landlord fails to prove his case the deposit will be returned to the tenant.

During the ADR process, if the scheme is an insured scheme the deposit will be held by the landlord and therefore the scheme will ask the landlord to lodge the money with them pending the results of ADR.  Once the decision has been made the scheme will repay to each party the amount to which they are entitled.

The reason this is called “Alternative” Dispute Resolution is that it offers  a “free” alternative to the normal legal system but it does not replace it and either party can, if they wish, take the case to court instead. If either party decides to take the case to court the deposit protection scheme must be informed and once the case is heard they must be given the court documents to prove the result of the case.  They will then distribute the money in accordance with the Court Order.

Neither party can just ignore the request of the other for ADR.

If either party fails to respond to a request from a scheme to take part in an ADR, the other party will win by default unless that party tells the scheme that he is taking the case to court. This must take place within 6 months of the issue being raised.

In conclusion it is not an option for a landlord to ignore a request for ADR where he is holding a deposit because he has used an insurance based scheme.  If he fails to agree to ADR or does not take the case to court within 6 months, the scheme will repay the deposit to the tenant and reclaim it from the landlord.

If the landlord fails to respond at all ADR will look at the case based on the tenants request and will return the money to the tenant.

A landlord who fails to make the payment will be permanently removed from the scheme and his only option in future will be to lodge his deposits with the custodial scheme.

Where a tenant simply does not respond the landlord too can reclaim the deposit from the custodial scheme either through taking it to court or by using the Single Claim Process.

Sources of information

1) DPS – see >>> http://www.depositprotection.com/documents/reclaiming-a-deposit-2013.pdf

2) my\deposits – see >>> http://www.mydeposits.co.uk/sites/default/files/Tenant%20Guide%20to%20ADR.pdf

3) TDS – see >>> http://www.tds.gb.com/resources/files/What%20happens%20when%20the%20Court%20is%20involved%20in%20a%20tenancy%20deposit%20dispute.pdf


Retaliatory eviction – possibility of civil litigation? Latest Articles, UK Property Forum for Buy to Let Landlords

We’re a professional couple with a limited company which provides a technology solution to the NHS. It suits our circumstances to rent at this moment in time. Retaliatory eviction

We had a 4-year rental of a lovely apartment until last Summer, when the owner decided to downsize and move back into the property. It was a good relationship, we had treated the property as if it had been our own investment and we parted as friends – with our deposit paid back in full.

After much searching we found a 3-bed town house which appeared to offer us everything we needed. The letting agent was a member of NAEA/ARLA and appeared to be respectable. There were some agreed remedial works to be dealt with and we were given assurances that these would be attended to in due course. We moved into the property in late August 2012.

Sadly, by the beginning of November, it was apparent that the property had some significant problems. There was extensive water penetration upstairs and a rising damp problem to the ground floor. The letting agent was informed immediately, with photographic evidence and a request for urgent assistance. We moved our furniture from the 3rd bedroom.

A ‘trades-person’ appeared in due course, with a notepad and pencil but with no damp meter. A report was promised, but was not forthcoming. The letting agent promised to send another contractor. This one only worked weekends and couldn’t agree a time to call; that visit never took place.

I called the landlords contractor to arrange the remedial work to be completed – missing doors, exposed wires, etc. He visited early November, measured up, made notes, promised to return – but failed.

We spent the most horrendous Christmas and New Year in the house. There was serious damp penetration, black mould which was constantly being removed. Slugs were climbing the walls. The house was very cold and the more that we heated it – the worse the damp became. We telephoned, wrote, sent photographs, yet the letting agent did nothing; there were plenty of replies – unbelievably stating that they were attempting to do everything as quickly as possible. We initially resigned ourselves to getting out of the house at the end of our AST.

In early-February, I wrote the strongest letter to letting agent with photos. A survey was made by Peter Cox, a pretty damning report which agreed with our complaint – serious damp and rain penetration. I wrote again, asking for compensation and a reduction in rent. This was refused. The letting agent had said that the landlord was absent; it transpired this wasn’t the case.

We tracked the landlord down and demanded a meeting. The landlord appeared, agreed with us in full and said that it was the first he knew of the problem. He agreed that we should be compensated and that this was the letting agents responsibility. Our landlord sat in our home, apologising and promised us both that this would be resolved. He remarked how clean we kept the property. The next day he had changed his mind and said that our grievance was with the letting agent. The following day – the EHO (Environmental Health Officer) inspected. That week, the missing doors and exposed electrics were attended to. We sent 2 requests to the letting agent, for the landlords address – these were refused.

A week later we received a section 21 notice to quit. The landlords address was given as c/o a family member in the South – presumably to thwart a legal action by us.

It turned out that the landlord had known of the problems. He’d applied for a grant for roof insulation, in my name – without my knowledge – and prior to our first meeting. It transpired that the letting agents were not members of ARLA or NAEA and we contacted both organisations and Rightmove to get these false affiliations removed. The letting agent claimed an oversight.

We spoke with our MP who has written to the CEO of the local authority, in order to push the EHO. The EHO wrote to the letting agent and the landlord but there was no response. We then began to receive threats from the letting agent to enter the property to inspect and allow viewings; we made a formal complaint to the Police and this is logged with a fast-track number in the event that they continue. We threatened to change the locks and the letting agent replied that this was not necessary.

We defended the section 21 notice on the grounds of incorrect dates and continued to pay the rent. We were not going to be forced out and subjected to costs or inconvenience due to their incompetence. The weather had improved and the house was drying out for the summer and we would tough it out now – having gone through the worst. We have since redecorated all damp affected walls as it is unnecessary to be reminded every day.

Our MP has pushed for resolution; this has mustered a stronger letter from the EHO. There has been no response other than a second section 21 notice. The dates are once again incorrect. The letting agent has put our deposit into a DPS but did not provide the Deposit Protection Certificate or prescribed information until we requested it after five months of tenancy. The prescribed information appears to be incomplete. I doubt that any s21 is valid until deposit is returned and the landlord might be liable for 3x under the Localism Act? Our claim should also be for a reduction in rent back-dated to 11/2012 and should provide compensation for immense stress and upset – particularly to my wife – for the repeated inconvenience, small damage, etc.

We’ve spoken with experts in Landlord/Tenant issues, they’ve seen our file which is very complete and have passed it onto Barristers to evaluate. We have a strong case apparently, but would incur costs of circa £7k to seek compensation/enforcement of duty to repair; we’ve been told that there is little likelihood of being awarded costs – if successful. That’s an expensive ‘point of principle’ for us.

It seems a dreadful situation. We actually like the house and the worst of the problems could be so easily resolved. We must now consider vacating the property before the bad weather sets in again – to remain longer would weaken any case against the landlord and the letting agent. The landlord is inexperienced and his conduct and concern for our welfare has been quite despicable. The promises that he made to my wife and I were instantly forgotten and we would like to do whatever might be done, so that he is taught the lesson.

Please accept our apologies for the long post, is there anything that we could do, other than what the landlord and letting agent expects – that being to vacate and walk away? I feel that someone needs to make a stand here, to create some solid case law if necessary – to protect others faced with similar problems in the future.

Thanks in advance

Roy and Tania


How to help bring about changes to legislation post “Superstrike” Buy to Let News, Guest Articles, Guest Columns, Landlord Action, Landlord News, Latest Articles, Legal, Letting, Lettings & Management, Property Investment News, Property News, The GOOD Landlords Campaign, UK Property Forum for Buy to Let Landlords

One of the things that are uppermost in landlords’ minds at the moment is the concern that we are vulnerable to possible litigation following the “Superstrike” case. The degree of that vulnerability varies from landlord to landlord and of course some landlords are not at all clear where they stand.Mary Latham

All of the deposit protection schemes and large landlords associations are working behind the scenes to persuade DCLG to tweak legislation to prevent courts being overrun with cases from tenants who have not actually been deprived of their legal rights but have become aware of the loophole that Superstrike highlighted.  In other words they are not asking for a change in the law which would enable those landlords who do not/did not protect their tenants deposits (HA 2004 & Localism Act 2012) to get away with it.  What they are asking for is a change which prevents those landlords who believed that they were acting within the law from facing litigation from their past and present tenants. These are the landlords who do/did protect their tenants deposits and provided the tenant with the Deposit Protection Certificate and Prescribed Information for Tenants within 30 days of having received the deposit but who were unaware that they needed to provide the documents again, despite the deposit protection continuing and no new paperwork being issued, at the point at which the fixed term of the tenancy ended and a Statutory Periodic Tenancy began (HA 1988). There are also those landlords who have tenancies that began before the Deposit Protection legislation came into affect (HA 2004) and therefore did not protect their tenants deposits. These landlords were also unaware that if the tenancy became a Statutory Periodic Tenancy at the end of the fixed term after the law changed that they should have protected the deposit and served the documents on their tenants. This last point was the crux of the Superstrike case.

In addition to the concerns many of us have about the potential litigation (it has not yet been established that there is actually a threat beyond the circumstances of Superstrike) is the issue of not being able to regain Possession of properties using Section 21 (HA 1988)

In order to convince Government that this is a major problem in the PRS they need to be shown actual evidence and the only people who can give them that evidence is us (landlords and letting agents).  All of the organisations involved in the discussions have produced a short survey to gather the facts.

The combined results will be present to DCLG.

The survey will take just a few minutes of your time and will not ask you to identify yourself.

If you do not take the time and trouble to complete the survey we may lose the argument and fail to get the legislative changes that we all need. 

Please follow the link  below and do your part to bring about a solution for us all before the Courts are filled with cases brought by the “No Win No Fee” people that have sprung up to make easy money from landlords who have simply made a mistake and have not in any way deprived our tenants of their legal rights.

Please also send a link to this article to every landlord you know to make certain they aware of this very important survey.

Click this link >>> https://www.surveymonkey.com/s/NLASS

When I completed the survey I found that I needed to read it first then work out which category my deposits fell into before going back and completing it – which took less than 2 minutes. By doing the calculations for this survey I am now clear of where I stand with each of my tenancies.

This was a useful exercise and may help me going forward when the inevitable happens and a landlord is sued by a tenant for one of the possible scenario.

I think that you may find this helpful too.


Professional Inventories for Landlords – the devil is in the detail Latest Articles, UK Property Forum for Buy to Let Landlords

There have been several discussions here about inventories, why they are necessary and which is the best software to use to produce them etc.

What we’ve never had before though is the ability for landlords and letting agents to download a professionally prepared inventory for benchmarking purposes against what they have been doing until now.

With this in mind I  asked two major contributors to our forums and supporters of The GOOD Landlords Campaign for their help.

Sian Hemming-Metcalfe is an independent inventory professional and has produced a sample inventory for ARLA agents LettingSupermarket.com

The inventory comprises 75 pages of detail – take a look if you want to compare it to what you might be producing for yourself.

As you probably know, landlords lose deposit protection arbitration cases more often than they win. This is not because the process is biased in any way, it’s simply because their evidence for claiming damages is insufficient, usually due to the quality of the inventories produced at the point of check in and check out.

It needn’t cost a fortune to have inventories of this quality produced. In the case of LettingSupermarket.com, it’s all part and parcel of the service they provide from just £24.99 a month plus VAT, nothing up-front to pay by the landlord – see this thread where I have reviewed their offering.

To download a copy of the example inventory which Sian produced for LettingSupermarket.com please complete the form below. Details of your enquiry will be provided to LettingSupermarket.com to follow up with a sales call and/or email.Professional Inventories for Landlords - the devil is in the detail

Download the sample inventory

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