SMF - Just Installed!

Deposit Protection

Started by JonCd, November 05, 2016, 08:36:15 AM

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JonCd

Case history :  A 'joint' AST began in April 2009 - 12 month fixed term - and the deposit was correctly protected and the prescribed information served. In April 2011 - at the time of renewal - the new AST became a 'sole tenancy' as the other tenant had left the property.

The deposit was not repaid at this time and was used as a deposit for the new AST  -  the deposit protection certificate and prescribed information from the previous 'joint' tenancy was reserved by my agents and has never been amended to match the AST details.

Since 2011 the AST has renewed as a sole tenancy five times and has now lapsed into a SPT.

Would a Section 21 be valid if now served on the tenant?

Am I liable for a penalty ?

NorthernLaura34

This is the same question (more or less!) I was going to post. Any advise or similar experience would be much appreciated.

With my tenants, the joint tenancy ended as the tenants fell out! So the one who paid the deposit for the two left and the two aren't speaking at all now, but the original deposit payer is aware that the deposit is still held under his name and didn't seem too bothered. Can anyone confirm that the deposit will still go back to him when the current tenants eventually leave my property?? I assume it was all registered with his bank details, etc. so will just go back to him as a little treat when his previous friend moves on! My only concern is that he may no longer be in the country, or that if the current tenant damages anything and I need to take some of the money, that's where problems are going to arise. However (touch wood) these tenants are wonderful and if anything have added more improvements to the house than anything!

Hippogriff

In the case of joint Tenants a single Tenant is nominated as Lead Tenant, right?

At least, that's what happens with the DPS when I protect deposits.

NorthernLaura34

I guess the one who paid, and subsequently left, was the lead tenant. I've changed my tenancy agreement to state now only one tenant but I've not changed anything with the secure deposit as everyone seems happy enough :| I'm just wondering what could come of it...

Hippogriff

DPS sez - "How do I make a change to the tenant(s) registered against a deposit?

If the lead tenant is leaving the property and is being replaced by a new lead tenant, the Joint Deposit Repayment process should be followed. A new deposit will then need to be secured in respect of the new tenancy details. If the deposit relates to a sole tenancy and the tenant is not co-operating with regard to the repayment of the deposit or is un-contactable, you can make a claim against the deposit by starting the Single Claim process.

If, for any reason, either of the above options are not possible then we may consider processing the change of tenant on your behalf. In order to request a change in tenant, please provide the details of the change together with the reason for the change, by completing our Online Form."

https://www.depositprotection.com/help/browse/custodial/agent-landlord/transfers

Best to check with the scheme you have it with, I'd say... to find out what's applicable and what's not.

jacandtyson

The way I've read things in relation to deposits,and I think an important question is this: when the AST finishes and then  renewed with the same tenant or goes onto a PT should the deposit be returned and then taken again upon renewal? I believe to comply this would be the case however,it means paying each time depositing the fresh deposit and more work for the Landlord,so am I right or wrong?

Hippogriff


jacandtyson

Mmm! Are you sure? On what theory do you base your reply? If Landlords believe what you say and act upon your advice the could come a cropper! Are you a solicitor?
For Landlords read:GARDNER  V  MCCUSTER 2014.--
Read the NLA advice on reprotecting deposits.
Superstrike  v  Marino Rodrigues 2013/2014 although not the same case confirms that when a ASC ends and continues as a PT IT IS A NEW CONTRACT AND NOT A CONTINUATION. 

Hippogriff

You're out of date... look up the Deregulation Act of 2015.

Yes, I'm sure. I'm not basing my reply on a theory.

What's an ASC?

propertyfag

HIPPOGRIFF is correct, your information is out of date JACANDTYSON.

The P.I and deposit doesn't need to re-protected each time! As HIPPO said...The Deregulation Act 2015 has led to some important changes in respect of Prescribed Information and has led to this becoming a less onerous obligation on landlords.

As per the RLA website (http://www.rla.org.uk/landlord/tenancy_deposit_scheme/deposit-guard-prescribed-information-guidance.shtml):

"If the tenancy rolls over into a new fixed term AST or a statutory periodic tenancy there is no need to re-issue the Prescribed Information as long as... etc"


propertyfag

ASC = Assured Shorthold Contract... I guess?

stu8350

hi like many i forgot to deposit my tenants money in the time scale . advice needed as in do i do it late or can u do a new tenancy agreement ?

jacandtyson

Thank you for your reply and that puts my post to bed.Shame info on the internet is not kept up to date.Yes, you guessed correctly which wasn't difficult to work out. AST contract my error ASC.