Tenancy Deposit Scheme For Landlords
Written by The Landlord on 30 Mar 2007From 6 April 2007, when a tenant pays a deposit for an assured shorthold tenancy in England and Wales, the landlord or letting agent must protect your deposit through a Government-backed tenancy deposit scheme.
What is a Tenancy Deposit Scheme?
The scheme is a legislation requiring any deposit handed over to an agent or landlord to be secured into one of the three Government approved Tenancy deposit schemes.
Why was the Tenancy Deposit Scheme introduced?
Tenancy Deposit Protection (TDP) was introduced by the Housing Act 2004 as part of a package of measures to raise standards in the private rented sector.
The legislation aims to ensure that tenants who have paid a deposit to a landlord or letting agent and are entitled to receive all or part of it back at the end of that tenancy, actually get it.
In the past there has been a lot of disputes involving deposits between landlord and tenant. A lot of cases emerged where tenants thought their deposit was held unfairly, consequently the tenancy scheme was introduced.
Who does it apply to?
The scheme applies to EVERY landlord and letting agent in England and Wales where a deposit has been taken from a tenant under an Assured Shorthold Tenancy Agreement (AST), after the introduction date, 6th April 2007.
How does it work?
There are two types of tenancy deposit protection scheme available for landlords and letting agents, insurance-based schemes and custodial schemes.
Insurance-based schemes
The tenant pays the deposit to the landlord and then the landlord retains the deposit and pays a premium to the insurer.
custodial schemes
The tenant pays the deposit to the landlord or agent and then the landlord or agent then pays the deposit into the scheme. This option is most commonly used by landlords.
Once the deposit is protected
The deposit must be protected with in 14 days of receiving the deposit. The landlord or agent must give the tenant the details about how their deposit is protected including:
- the contact details of the tenancy deposit scheme selected
- the landlord or agent’s contact details
- how to apply for the release of the deposit
- information explaining the purpose of the deposit
- what to do if there is a dispute about the deposit
After the tenancy
If an agreement is reached about how the deposit should be divided, the scheme will return the deposit, divided in the way agreed by both parties. If there is a dispute, the scheme will hold the deposit until the dispute resolution service or courts decide what is fair
Is securing the deposit into a tenancy deposit scheme necessary?
As long as the following is true, then yes, the deposit must legally be secured into a tenancy deposit scheme:
- The tenancy is an assured shorthold tenancy
- The agreement was formed on or after the 6th of April 2007
- A deposit was paid
What do I do if my deposit hasn’t been protected?
If tenant’s are concerned that their deposit hasn’t been protected, they can apply to the county court for an order that the landlord or agent should return the deposit back, or protect it in one of the tenancy deposit protection schemes.
The court can also order the landlord or agent to pay you compensation equivalent to three times the value of the deposit you paid.
Failing to protect the deposit may also make it more difficult for landlord’s to evict or repossess their property if the deposit isn’t protected.
Does the tenancy deposit scheme cost anything?
It depends which scheme you use. The following schemes have premium rates:
- Tenancy Deposit Solutions Ltd(TDSL) – www.mydeposits.co.uk
- The tenancy Deposit Scheme (TDS) – www.td.gb.com
However, here’s a Free Deposit Protection Service.
Here’s an in-depth overview Tenancy Deposit Protection Scheme (in pdf format) by the government.
Minimize conflict
When a new tenant moves into a property, it’s always a good idea to draw up an inventory form. An inventory is a detailed list of the contents and condition of the property and any items provided with it, such as furniture or equipment. Having an inventory can help resolve disputes at the end of a tenancy about whether any damage has been caused, or if any items are missing.
88 Comments - join the conversation...
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I suspect our deposit has not ended up with the DPS but our landlady is lovely and I don't want to cause her grief. The lettings agents, however, are a bunch of unprofessional cowboys and can go hang...
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I used to rent with another girl, but she moved out, and now I'm renting on my own.
The landlords have asked me to pay the rest of the £220 deposit, to make up the full £440 (cost of my monthly rent). I have been in my flat for nearly a year and I am a good tennant, so I'm just wondering if this is the normal thing to do? I have 2 weeks rent as deposit, is this not enough? I just need advice.
Many thanks
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please help. thanks.
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By law he was required to secure the deposit within a reasonable time frame, normally 14 days is pretty appropriate. Failure to do this can result in further legal action, but its' always nicer to check that the full amount was secured, that you have receipt of this and to request an explanation from the Landlord about this, mainly to avoid nasty disputes and hassle.
But no, he should have secured it much sooner.
Hi Tallie,
Having checked out "Section 21 of the Housing Act 1988", I can tell you that Section 21 is the right of the Landlord to serve a tenant a notice to quite. Since you moved out of the house, it seems willingly, she can't serve you with that one.
If she agreed to it beforehand, did she write you a letter to confirm this or to did she say it verbally? What reasons has she given to withhold the deposit after agreeing to return it? Has she given you a full and extensive breakdown of the reasons, costs, expenditure and then worked out a "reasonable apportioned net cost" to keep from you or stated she will keep the entire deposit?
If she agreed to your refund in writing, then she cannot back-pedal without a lot of evidence to justify this. By law she can't keep the deposit at her own discretion and must provide extensive and lengthy evidence as well as work out a "reasonable apportioned net cost" to deduct from the deposit. If you need help figuring that out, go to http://www.propertyhawk.co.uk/index.php?page=magazine&id=118 .
Unless she does all that, you are legally entitled to take her to court to reclaim a certain value of the deposit. Always check it with a solicitor or with the CAB first though, but it sounds like your Landlady is trying to shaft you big time.
Toodles
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I would check with the CAB on this one. However, the Landlord is entitled to a full deposit. This depends though if he has refunded the girl who moved out with her half of the deposit, which you need to check first.
Hi Jimmy,
Generally speaking, whoever you paid the deposit to is the one liable for further legal action. Unfortunately your landlady will be the one who gets on the wrong end of the law as it is a legal requirement that, as long as the tenancy was made after 6th April 2007, it was a legal requirement to secure it. If you paid the landlady the deposit, you should probably get in touch with her ASAP and give her a heads up on that one.
Toodles
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So sorry to hear about your case, I myself am in a current legal dispute with my former landlord. It's never fun.
Points to note:
1) She is violating your "right to quiet enjoyment" that comes with all tenancy agreements and could have a harrassment case taken off her.
2) She has absolutely no legal right to have your mail delivered to her and falls dangerously close of violating the human rights act. Not to mention any other complications. Serve with a written note immediately to get it in writing that she's to cease this activity.
3) Remind her that if she asks you to pretend your someone else, she's essentially asking you to potentially become an accomplice to fraud. Start digging into her background straight away.
4) If she hasn't had your deposit secured she is in severe violation of the law and you have the right to serve her with an immediate "Notice of Intent" - if that doesn't get you your deposit back, you could take her to court and she could lose a lot more.
5) Given the circumstances she could potentially withhold a small amount of deposit if she can reasonably prove the deduction in deposit is warranted. However, if you serve her with a "Notice of Intent" (see your solicitor immediately), its' basically a pretty form that tells her what you plan to do and gives her the opportunity to return your full rent. If it gets to the stage where you reach court, the Landlord/Lady can be forced to pay you up to three times the amount of your deposit and cannot carry out Section 21 of the Housing Act.
Aside from that, get in touch with a solicitor and get the ball rolling as you have a case.
Toodles
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i was wondering if you might be able to help as I'm not quite sure of my rights.
I rent from a Live-in landlord. I asked if my deposit was going into the scheme and he said it doesnt have to because there's a different rule for live in landlords.
he then kept my contract and hasnt provided me with a copy of it. There were no witnesses to the contract being signed either.
since living there i have discovered- no word of a lie- that he has gay porn shoots going on in the falt. obviously this wasnt mentioned to me before moving in and is somewhat uncomfortable to come home to find a a porn film being shot in your living room.
i stuck to the rules in my contract- 2 months notice after 6 months of tennancy and made sure my room was always tidy as my landlord would give me an hour or two notice to tell me someone would be coming to view. However I got a text asking me to start moving things out of the flat before my move out date because i have too much stuff and people wouldnt be able to see the size of the room. it was tidy at all times. he now is saying that ive not fulfilled my contract because the room is not marketable.
However, I should also note that, without telling me, he has built an en suite in my room and was still showing poeople around while the room was covered in dust with holes in the wall and floor.
I should also state that I had to sleep in this room, with a hole in the wall, works going on , all my belonging covered in dust.
i then came home the other day to find all of my clothes out of my wardrobe and piled on my bed and all my belonging stacked around the room as he had a plasterer in doing my walls at 10am on sat morning without telling me.
i dont know where i stand and what i can push for.
my main concern is that i get my deposit back in full. any help/ info would be greatly appreciated!
Thanks so much in advance.
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My first thought is go to a solicitor immediately to check your rights as I'm not a qualified solicitor and only know so much. What I would say is:
1) Unfortunately, your Landlord is not wrong about different laws applying to "occupiers", and "occupiers with basic protection" versus renting a property. However, 99% of all tenancy agreements in the past few years are AST's (Assured Shorthold Tenancies, which are the only type of tenancies where the law requires a Landlord to secure the deposit) and I believe that Occupiers also have the same basic legal rights, so you may still be entitled to claim your full deposit. I must warn you though that Occupiers have very little in the way of legal rights unfortunately.
2) If you request a copy of the contract, he is legally obliged to provide you with one. It should always be witnessed where possible by a third person party, but isn't always vital.
3) As you have no exclusive legal rights to any part of the property, it does make things more difficult for you. However, the Office of Fair Trading demand that Landlords reveal any and all potential problems or faults before the tenancy commences. On the flip-side, he still has majority legal discretion and control over what goes on in the "privacy of his home", so onec the tenancy began, you lost your ability to complain.
4) You only had to give him one months' notice, which you could have served at the start of the 5th month. If you leave before your tenancy is up, the Landlord can still require you to pay the rent for the "guarantee period", but under certain circumstances you don't have to. Just a point to add there, but the two month minimum restriction isn't legally enforceable.
5) All tenancies allow the tenant something called "a right to quiet enjoyment", which basically means they're legally allowed to live hassle free during the tenancy as much as is reasonable. Your Landlord was in clear violation of this on numerous levels. As far as allowing people to see the room, he should have given you 24hr notice minimum.
6) He had no legal right to force you to move your stuff. He was allowed to request it off you, but you didn't have to comply.
7) If he's claiming you're in breach of contract and you wish to dispute this, by Law he has to make any and all evidence available, including pictures of the state of the room, documents showing times and receipts when work was done, the tenancy agreement, etc. He's also not legally entitled with take the full deposit, he has to take what is called a "reasonable apportioned net cost" and show extensive evidence and workings out for the total he deducts from your deposit. Chances are, you're still entitled to a good portion of the deposit you paid.
8) Probably the room was considered "unmarketable" due to work he had done which is not your liability. Additionally, although you have no legal right over the rest of the property and he can do as he wishes, in the room you're in by law he was required to seek your permission before commencing work.
9) He had no legal right to invade your living space and interfere with your belongings, due to the "right to quiet enjoyment" principle.
10) Get an official complaint to him in writing straight away! The more you get in writing, the more you can support your side of the story.
Aside from that, by the sounds of it you're probably entitled to most, if not all, of your deposit. Get to a solicitor straight away, get their opinion and if they agree, immediately get in touch with the Small Claims Court.
All the best.
Toodles
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@Tallie - Obviously Section 21 of the Housing Act entails more than "telling tenant to get lost", but the general point still stands.
@daisyl - did a bit more digging, it is more than possible that your tenancy as a lodger was an AST (assured shorthold tenancy) that gave you exclusive occupancy for one singular room. If that is the case, you're in a much stronger legal position, so you desperately need to get hold of your tenancy agreement.
Toodles
49
If you were renting a room in his home, then the law stipulates that an AST is impossible, so he didn't have to secure it. He does still have to provide you a reasonable break-down though and by Law cannot have full discretion over your deposit. Which means you're entitled to argue.
Toodles
50
having a nightmare time with my landlandy in manchester. Started tenancy in this property 1/5/2009 tenancy agreement ended 1 yr later in 2010. The landlady took the deposit and i have the signed and witnessed tenancy agreement in my possesion, im planning on moving out with my GF in march, now i know that my deposit (550) didnt go into a deposit scheme because i never received any forms from the schemes with any log in details. she has recently said i still owe her the deposit and i'm 1 months rent in arrears after my bank account was hacked via paypal, so i couldnt pay nov 2010's rent, which i explaind and she was ok with at the time. she came round today saying she is going to evict us both ( GF name not on agreement) she is 19 weeks pregnant too.... said she isnt going to give us even a months notice...
Am i right in thinking she has to goto court and when and how do i get my deposit back - after i move or get the ball rolling now ..
thanks for any advice.
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Short answer - your Landlady needs a good stern talking to and hasn't done herself any favours ;)
Real answer:
a) Ask her in writing to show you proof of the deposit to be secured. Her claim you didn't pay is obviously ridiculous, as no landlord or landlady I know would ever take a tenant without both the first month's rent and deposit before handing over the keys.
If this goes to a court of Law, apply from your bank to have your records pulled from the time you paid the deposit, that coupled with her lack of evidence of a deposit being secured is more than enough to take further action and secure either your full deposit back or three times the total.
b) Verbals agreements are legally binding, but really awkward to work with in a court of law. You may be required by a judge to pay the missing month's rent anyway, but rather than pay the full lump sum you can offer her a reasonable rate of payment over a number of months - say £137.50 over four months (example) to pay her for that month of missing rent. If she takes that to court, she has to explain why you offering to repay her is unreasonable, which she can't.
c) Currently your Landlady has shot herself in the foot. What she's tried to do is serve you with a Section 21 "Order of Possession" which is the notice for the tenancy to end. If she wants to do this, she has to include this in writing by law and allow a minimum of two month's notice before it becomes legally binding. If she doesn't put it in writing with 2 months notice minimum, the notice isn't legal and won't stick.
d) She only has to go to court if she tries to kick you out within the "guarantee" period of your tenancy (assuming you have a Assured Shorthold Tenancy). Outside of that, she doesn't have to take you to court to give you notice to leave, but she MUST serve it to you in writing.
e) She's not allowed to just turn up on your doorstep as this constitutes a violation of your "Right to Quiet Enjoyment", which is basically your Statutory right to be able to live in peace as much as is reasonable. She should also give you 24 hour's notice before turning up otherwise she could be done for harrassment.
Also remember that while you have a tenancy in the property, you assume nearly all the legal rights and responsibilities to do with that property that a homeowner would - which includes laws against trespassing, etc.
If at any point you feel intimidated or threatened you can phone the police and tell them you are being harrassed or feel threatened by the Landlady and her sons. The police may treat it as a civil matter (which they don't get involved in) but may give her a verbal warning to leave you alone if it looks like it might turn criminal.
Get this all in writing immediately and get a solicitor to get the ball in motion about your deposit. If she pays your deposit back, immediately give notice to leave. If she fights you in court, you could get up to 3 x the amount of the deposit and your Landlady can't give you a notice to leave.
Finally you are fully legally entitled to have the locks changed on the property as long as you have them put back when you leave if you're worried about trespassing.
Hope this helps, best of luck.
Toodles
53
I think you'd be wasting your time after a year because you did actually agree to the amount so why not move on with your life
54
Then an estate appeared on the scenes and 2 days after the keys were handed they found new tenants. These news were given to me by the agent on a 'by the way,.. we found new tenants' and she told me they would be moving on the 7th of march because they needed to prepare the property. i contacted my landlord to arrange the final meeting as he live in ireland, and he said that my responsibilities of the property were until the sixth and he was coming that weekend. I had arrange my move for the weekend before because the 1st was a tue so already had to pay a few days more to my new house and was going to have to pay another 6 days.
Decided to clean the house with my ex and today (4th)he rang to say that the agent had been into the property and said that the cleaning wasn't done by professional cleaners! And so that he was going to deduce it from my deposit.
Now first, in my contract it does not say that it has to be done by professional cleaners; Second I understand that they should have asked me permission to go in the property as according to him is still in my responsibility... Third the agency wasn't who I dealt with, they didn't know the property before I came would they be liable to inspect it for me? And finally I found out that he never registered my deposit...
Is my case of wanting all my deposit back unreasonable?
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1) Requesting you have it "professionally cleaned" before you go constitutes "betterment", which Landlords can't do. In other words, he can't hold you for not having it professionally cleaned unless he can prove you left the place in a horrendous condition.
2) Yes, the Landlord should have served you with a 24 hour notice that the Letting Agent was going to come to the property as well as being asked when the Agent turned up for your permission to enter. Failiure to do this constitutes a breach of your "Right to Quiet Enjoyment" which is Common Law and borders on harassment.
3) Whether the Agency knew what condition the property was in before they came in is irrelevant, without a signed and witnessed inventory (as agreed by Landlord and yourselves as tenants) and/or signed, dated and witnessed photographs, he can't reasonably prove the property was in a clean and tidy state when he first let it, nor that you left it any worse than when you found it.
4) If he didn't take your deposit, it would definitely be worth sending him a letter asking him which group he secured your deposit with to confirm this.
What I would be inclined to do at this point is to send him a letter asking for your deposit back. When you get a letter back saying "no", ask him for details of the deposit service he used along with any and all evidence to show the property was in bad condition, along with which part of your tenancy agreement he's using to hold some of your deposit. Make sure you make it clear that "you have only recently become aware" about the deposit.
Send him another letter about 7 days later saying that if you don't get the info you want within the next 14 days (therefore allowing at least a total of 28 days from your first communication) then you will begin proceedings with the Small Claims Court without further notice. Tell him in the same letter that if he returns your full deposit that this will settle any outstanding moneys owed in this matter.
The Small Claims Court is designed so that you don't need to pay for solicitors costs and can represent yourself. There will be a fee of around £80 or so and you can represent yourself (the judge may ask questions from all of you), but its' definitely worth it to get your money back if he doesn't pay up. Just make sure you keep any and all evidence in good order if you have to go.
Best of luck,
Toodles.
56
Thanks for your response.
However I am just about to meet with the landlord to hand the keys and although he hasn't yet seen the flat he is obviously going to come with a clear agenda, and will refuse to pay the whole amount in person, to what I imagine I will have to say from now that we need to find a third party to resolve this.
Just a question. Is there any reason you mention 28 days from the first letter?
Thanks,
Nicole
57
I say 28 days because by law the Landlord actually has 30 days to reasonably return any and/or all deposit, but most billing practices are done with a 28 day limit (four weeks). If he hasn't returned it by 28 he probably won't return it by 30 though.
Just remember that he has no legal right to hold any of your deposit without a sufficient level of evidence to back his claim.
Best of luck,
Toodles
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@ Henry - in most cases, it depends on who took the deposit. Most letting agents word their contract to state that they take "X months rent" to avoid being sued for not securing the deposit though, so you might have to check your paperwork.
Toodles
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Yes, within certain restrictions, such as:
1) This applies only to AST's - Assured Shorthold Tenancies. Those with Assured Tenancies, Rent Acts and lodgers are exempt from this.
2) The rent comes under a certain value per year, if I remember correctly this is £100,000 per year.
3) The tenancy started on or after 06/04/2007 (6th of April).
4) The Landlord or Letting Agent took a deposit in the first place.
If those circumstances apply and the deposit was not secured within 14 days of receipt of the deposit, then the tenant can start legal proceedings to go to the court as this is in violation of the law. If, however, the Landlord pays back the full deposit before the court hearing, then the 3 x deposit penalty is simply not enforceable.
Hope that helps,
Toodles
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If the letting agent secured your deposit, you would have been served with paperwork from the protection scheme used that would include your personal details, password (and other similar private bits of information). If you never received this, it would be very likely that your Letting Agent did not secure your deposit. The fact that they refused to tell you is incredibly dubious.
By law, there is actually a 30 day period in which a deposit can be reasonably returned to you after the date that the tenancy ends, not 15. However, normally if the deposit was held in a scheme you would receive it within 14 days of an agreement being made between yourself and the Landlord.
The first thing I would suggest would be to send the Estate Agent a letter. In the letter, it would probably be a good idea to state along the lines of:
"Dear X,
I have recently been made aware that by law, any AST in which a deposit was paid as from the date 06/04/2007 was to be secured by the party/ies authorised to handle the deposit within 14 days of receiving it.
My tenancy for X property started on Y date, during which I was requested to pay a deposit to the value of Z. Unfortunately, at no point have I received any information relating to this matter from either yourselves to confirm that the deposit was secured, or from the scheme you used. I have attempted to enquire as to which service was used, but have not been given any satisfactory information.
Therefore, I must unfortunately demand that any and all information in this matter is to be made available to myself within the next 14 days. Should you fail to comply with this, I will be forced to look into taking legal action without further notice which may include court action.
I await your response."
If they fail to get back to you or cannot provide the information within this time, then I would suggest going to a solicitor to confirm your position and to advise you on how to start legal proceedings through the Small Claims Court.
What you will have to watch is that some Letting Agents word their documents to state that they took "X months rent in advance" rather than stating anything about a deposit. However, if you were led to believe that you paid a deposit at the time by the Letting Agent, then you would still have good ground to pursue them for not securing it.
Best of luck,
Toodles
65
The tenancy agreement I currently have it states that the security deposit was given in case of finding damages in the property when the contract ends, and to use it to fix all the damages. It does not state anything about taking X month rent in advance instead of stating anything about the deposit. It clearly states that, that money will be used in case of any damages in the property.
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1) You can sign any new tenancy agreement while still taking legal action against the letting agents, there's nothing that would stop you doing this.
2) There is no legal requirement for you to sign a new tenancy unless you want to, just because your Landlady tells you to does not mean that you are legally obliged to. All that would happen is that your AST would switch to an SPSTA (or SPT for short), during which your Landlady could give you notice to leave.
3) As far as the letting agent physically or verbally assaulting you, sadly this is generally considered not connected to your tenancy with your Landlady. If you wanted to bring this up in a court of law, you would have to pursue this as a separate civil case and would have no bearing on the matter of your deposit.
4) Good to know about the tenancy agreement. If it states that a deposit will or has been taken, then you're on good ground. Sometimes people like to sneak in extra wording such as "(if it is taken)" or similar phrasings, so as long as your tenancy agreement doesn't state that, you've got ground to push for breach of contract.
5) If you've already notified the Letting Agent that you wanted the information and they hasn't responded, then I would probably suggest sending a rough copy of the letter I posted above still. Even though you notified them sometime ago, most courts will look to see if you've been as reasonable as possible. Again, if they fail to give you the information, pop down to your local solicitor to confirm your position and then, depending on what you're told, start the proceedings with the Small Claims Court.
Just to confirm, I assume that the Landlady does not live in the same property as yourself?
Toodles
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Technically "yes" and "no".
Emails are considered electronic documents and so in one instance, the answer would be yes, you could "sign" the tenancy agreement by email as it clearly displays an agreement between you and the Landlady.
On the other hand, emails can be forged incredibly easily and cannot be used as proof of receipt. Essentially, there's no way to prove that you were the author of the email. One of the main purposes of having a signature signed is to provide evidence "beyond reasonable doubt" that you are in agreement, which you cannot do with email. So on the other hand, the answer would be technically "no".
It's generally considered a very bad idea to "sign by email" consequently and really isn't recommended.
Toodles
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"One of the main purposes of having a signature witnessed".
Of course, the circumstances relating to the tenancy will often dictate if the courts would find it reasonable to assume that you sent and agreed to the email accordingly.
Toodles
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Thanks in advance for advice.
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The landlord is waiting for me and my friend to sign the agreement but he refuses to make a tenancy deposit scheme and he wants to take it through solicitors. he said he had troubles before and now he only wants to do it through solicitor.
What is wrong here? I read that the landlord is breaking the law if he doesn't have a tenancy deposit scheme.
Please some help!
thanks
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Technically it would be best if your Landlord did hold your scheme in a deposit as the law states. However, if your Landlord wants to take it through a solicitors, it probably means that his solicitors can think of a way that the deposit can be stored safely without having to resort to one of the usual government backed schemes.
However, this is the first time I've heard of this happening (and it certainly seems like a very expensive way of doing it). If you have any doubts about the legality of it, talk to your Landlord and get him to explain the process behind it as well as why he would prefer to do it this way.
Toodles
75
Wonder if you could give me some advise.
My tenancy ended on 26th July.11. According to the tenancy
agreement with the estate agents. I can expect my deposit money back (if landlord agrees) within 28 working days. Would this on a 5 day working week or 6 days (as they work saturdays).Or would it be 4 weeks (therfor 26th August)
Very confused
Advise much appreciated.
76
I humbly apologised for my shortfall and immediately protected the deposit and confirmation was sent to him by the DPS.
I have had to serve a section 21(4)A notice on him but he is now stating that the section 21 is invalid due to this issue with the depost and has also refused to pay rent for the past 4 months.
He is also insisting that no court will evict him due to this issue of the deposit.
Upon advise, I have downloaded a court Accelerated Possession Procedure Form (N5B), which I am understanding also states that if there was any descrepancy in the initial depost protection, then this process of eviction is not valid???
I am now at my wits end uncertain if this tenant will ever leave?
Any advise would be gratefully welcome.
Mike
77
Sounds like you have a tenant who thinks they can use the law to their advantage without actually knowing it. If it wasn't for your tenants' stupidity, they might have put you in a really tight spot.
Unfortunately the tenant is somewhat right in stating that due to the lack of security for the deposit he can't be asked to leave with a Section 21(A) notice. However, this is one of the punishments that can be handed out at the Court's discretion for failure to secure the deposit, its' not the tenant's rights to insist that this happens. Furthermore, this only stops a Section 21(A) notice, which is not the only way to evict a tenant.
You also stated that he has not paid his rent in four months. If this is the case, you should serve him with a Section 8 "Notice to Quit". If a tenant has not paid rent in two months or more in a row, then you should serve the tenant immediately with a Section 8 Ground 8 (Housing Act 1988), during which if you can prove that the tenant has not paid you, then the court is legally required to order the tenant to leave the property. Note that the lack of securing the deposit would invalidate a Section 21(A) claim asking him to leave, it CANNOT invalidate a Section 8 Ground 8 claim. Furthermore, the courts will order your tenant to pay back the rent arrears that he owes for the period of time that he refused to pay.
The tenant may try and come back at you by trying to counter-sue for the 3 x deposit amount for failing to secure it within the alloted time. If this happens, the first thing to do would be to refund the deposit in full (much as you may not want to). If you do, then the courts cannot make you pay the deposit back (as you already have) and he won't be able to claim the full amount.
Hope this helps. Tenants like this give tenants like me a really bad reputation.
Toodles
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Thank you so much for such a comprehensive reply.
It is so nice to know that there are even tenants out there who have high morals and principles!!!
One thing that I believe I did omit to include in my question, and for that I apologise.... At the time the tenancy agreement was drawn up, due to the fact that I was moving abroad, I had not there and then written in a uk landlord contact address on the agreement but once confirmed did send him an appendix letter within 3 weeks of the agreement being drawn up with all the details of my mother who agreed to act as a Uk correspondence address as she also lived locally.
It now seems as though he is claiming not to have ever received such a letter even though my mother received her copy of the one I had sent to him in order for her to file, and has also visited the property on my behalf on a few occasions when requested to.
He is stating that due to this and in compliance of the Landlord and Tenant Act 1987, he was never legally entitled to pay rent at all and has only paid rent up until four months ago on purely a goodwill basis, and again this omission to the tenancy agreement nullifies any eviction notice served..
The problem is that I am a disabled person who is now unable to even drive anymore ( Please do not think I am playing up on that), but he knows that I cannot simply just jump on a plane back to the Uk in order to attend the property at will to resolve any issues, and I strongly believe that my mother should certainly not have to deal with these issues as she is well into her 70's.
I admit that I have made some mistakes and being ignorant as a novice is no excuse, but now strongly feel that he is using his experience as a long established tenant of more than 9 years (In his own written words) as a sledge hammer.
Anyway, thank you very much again for you kind a rapid reply.
Kindest regards
Mike
79
Wow, certainly that added element about not being in the UK does make it a whole lot more difficult. Just to clarify, there is no UK property listed on the tenancy agreement? Secondly, when you sent the letter to the tenant and your mother, did you keep any kind of proof of postage?
Toodles
80
Does the rental property have a mortgage on it?
Toodles
81
Had a bit more of a think about the predicament you're in. Just to clarify:
The tenant has clearly had some legal advice somewhere. They are correct in stating that if they do not have a UK address to send all corresponding mail to, then they are not legally obliged to pay the rent. As you failed to secure the deposit in good time, it is quite possible that a judge would rule any Section 21(A) form invalid even if they do not give out the full 3 x deposit amount.
As I see it now, you have two options, though neither of them are ideal:
1) Take the tenant to court after serving a Section 8 "Notice to Quit" Under Ground 8 (failiure to pay rent for two or more months in a row at the time the notice is served). This one is risky given the circumstances involved and may backfire horribly. You would have to point out to the judge that at the time of signing the tenancy and for the eight months that followed, the tenant paid rent as per normal and thus lays down a precedent that the tenant accepts that rent should be due while already being aware of your circumstances. You would also need:
a) Any type of proof of postage for the letter you sent detailing your information when you sent it. You will need to prove the likelihood that you sent the letter rather then specifically proving that the tenant has the letter.
b) A statement from your mother along with her copy of the letter stating that she received it in good time.
c) A statement showing that your mother has been acting on your behalf while you are out of the country, including carrying out any inspections as per necessary (which the tenant clearly accepted). Use this to show grounds that the tenant was well aware of the arrangement of the time.
d) If your mother handed her contact details to the tenant at any time, a statement to this effect. If she has done this, this would show that the tenant had in fact received a UK contact address and details as appropriate.
e) To return the deposit in full the moment the tenant looks like they could be raising the issue. If you return it in full before he attempts to counter-sue you, then it is very unlikely he will win this case.
2) This one is a bit long winded, but it will mean that you can evict your tenant without needing to go to court. You would also need the co-operation of someone you trust.
The trick would be to sell the property at minimal cost to a friend or family member, the current tenant would become a "sitting tenant" and the new owner would become their new Landlord who would be expected to honour the current tenancy agreement. Once the new Landlord is officially recognised as the new Landlord and handed out any contact details as appropriate, he can then serve him with a Section 21(A) notice immediately as the fixed term has already expired. Because the issue of the deposit was with yourself and not with the new Landlord, the new Landlord's Section 21(A) notice would not be invalidated by the deposit not being secured.
This may seem expensive, but the trick would be to sell the property at the lowest price possible (I'd recommend £1, which you can legally do) and then sort out all paper work as appropriate. The only way that this idea might not work so well is if you have a mortgage on the property, which you would have to talk to the Bank as normal.
After the current tenant has left the property, you could either buy it back at the same price or else rent it out yourself. But that way, the tenant would have no choice but to leave the property.
Hope this helps you in some way, best of luck.
Toodles
82
Apologies for the delay in replying to you and again thank you for all your kind attention and the advise you have given.
I have now instructed a solicitor to handle the matter for me and following his comprehensive inspection of all the paperwork I have furnished him, is absolutely confident that the tenant is simply chancing his arm and that serving him an eviction order through the court would be successful even with the minor errors I have previously made.
He is also extremely confident in me being able to recover the ever increasing amount of rent arrears he is accruing.
Again thank you, and having read many of the messages and replies you have posted to other concerned authors regarding their own unique predicaments, you clearly provide an invaluable knowledgeable service which goes also to offer peace of mind.
Kindest regards
Mike
83
Glad to hear the ball is rolling (hopefully in your favour). If its' alright with you I would like to hear the outcome of this case when everything has settled down for posterity's sake.
Best of luck,
Toodles
84
No Problems!!!
Will be in touch!!
Mike
85
I paid a deposit of £150 mid September which was meant to be £560 (Security Deposit + September's rent) and the LL daughter who i was dealing with agreed to this. I agreed through text that I would pay the rest of the deposit in October when my loan comes through. (I'm a student living in a house with the LL daughter). My loan hasn't yet come through, so she said when it does I can pay the rest.
Within 3 days of living there I wasn't happy and wanted to move out. I only told the daughter a week later (so I have been living there for 2 weeks). She now demands that I pay the rest of the deposit + October's rent.
I haven't seen or signed a contract, do I have to pay the money which she is demanding? She is also saying I have broken the contract - can I do this without signing anything? (the contract started in sept).
Also how does a DPS work? because I transferred the £150 into her dad's (the LL) account. Does he then put this money into a DPS?
Please help because I want to know if I can walk out without paying anything! I am willing to pay either £130 to make up 1 month's rent which is £280 or pay £420 (september's rent (£280) + half of october's rent (£140) and she has £150 to cover the 2nd half of october - so essentially I am willing to pay 2 months rent.
Thanks!!
86
"I haven't seen or signed a contract, do I have to pay the money which she is demanding?"
If you agreed to rent the room from the LL and agreed to a rental value, then yes, you do within reason. However, the money would be paid to the LL, not the LL's daughter, who by extension, has no right to demand money from you.
"She is also saying I have broken the contract - can I do this without signing anything? (the contract started in sept)."
Technically, yes you could well be. If you have agreed with the LL to rent the property, then even if you do not sign the contract, you will have an "Oral Tenancy". Essentially it is still a legally binding agreement that, in many cases, takes on the standard contract clauses for your type of tenancy. As a result, it is perfectly possible you could be considered in breach of tenancy even if you have not signed it, as long as you agreed with the LL to stay there.
You will be in breach of contract at this time for not paying the rent you owe to date (which is a legal requirement). However, while many tenancies normally have a "fixed term", as you are a lodger, this may not be the case in your tenancy agreement.
"Also how does a DPS work? because I transferred the £150 into her dad's (the LL) account. Does he then put this money into a DPS?"
Normally yes, but in your case, possibly not. For any tenancy that is an AST (Assured Shorthold Tenancy), the LL is required to secure the deposit with a deposit protection scheme (such as the DPS) within fourteen days of receiving payment. This is only a legal requirement for AST's under a certain value (£100,000 per year) however, and the only way your tenancy could be considered an AST is if your LL does not live in the same building as yourself. Even then, there's no guarantee that your tenancy is an AST.
As for using the deposit to cover half the rent for October, the deposit is typically kept for the Landlord to cover the costs of any reasonable damages incurred during your time and thus should not be used to cover rent at all.
Why are you dealing with the LL's daughter and not the LL?
Toodles
87
Going to rent a new place (unrelated) and remembered I never received or heard regarding my deposit from the tenancy I finished 3 months ago. Going through my papers and phone logs they did phone me once after 15 days the contract ended and I moved out, which I missed. I also have not contacted them at all either.
From what I've read I only have 25 days to make a claim but I was not formally contacted (or rather talked to). Will this be a issue?
P.S *Quite simply I learned my other housemates have all been charged and lost their deposits, but I have not and haven't been contacted at all regarding mine. Does this mean despite the lateness and lack of contact I can just claim my deposit?
Just preparing my strategy atm, don't want to lose £300, have the advantage of pretending to be in the dark and can only pull this off once...
Advise much appreciated.
88
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