LL deposit scheme

molly22

i have rented out my property 3 months ago but have failed to secure the tenant's deposit in a legal scheme until recently.
i am about to serve a section 8 and section 21 on my tenant.
whats steps should I take re the deposit before i do?
im aware i cant serve a 21 without securing the deposit, how important is it to have a signed certificate by the tenant?
surely if i ask them to sign it now they will know there is a problem??

thanks

G_M

You cannot serve a valid S21 until you return the deposit in full to the tenant.

You used to be able to register it late, but not since last April (2012) (Localism Act)

You have breached the law and now must pay the penalty!

For future reference, when registering a deposit you do not need a tenant signature on anything. You need to
a) register within 30 days AND
b) issue the 'Prescribed Information' (look it up) to the tenant within 30 days

theartfullodger

And even after you've returned the deposit tenant can still sue you for up to 3x deposit..

Possibly expensive error....

If serving S8 notice has tenant perhaps forgotten to pay the rent?? Another understandable mistake (like not protecting deposit) by an otherwise perfect tenant perhaps then eh??

Cheers!

G_M

theartfullodger wrote: »

And even after you've returned the deposit tenant can still sue you for up to 3x deposit..

Possibly expensive error....

although if you have returned the deposit the court will look more kindly upon you and reduce the penalty from 3 times the deposit to.... double the deposit or less. They have discretion based on the circumstances.

FBaby

theartfullodger wrote: »

And even after you've returned the deposit tenant can still sue you for up to 3x deposit..

Just as curiosity, why? I am not too sure why it would make a difference financially to the tenant whether it was secured with 30 or 31 days, but more importantly, why could they claim 3x the deposit on this basis. How is it affecting them and why would they need compensation of three times the deposit? I don't understand the basis for this ruling.

Kayalana99

G_M wrote: »

although if you have returned the deposit the court will look more kindly upon you and reduce the penalty from 3 times the deposit to.... double the deposit or less. They have discretion based on the circumstances.

Bit of a newbie with these things...but once deposit has been secured doesn't the tennant have to ask for it back not the LL? So how can LL return something they don't have?

Or I might be complety wrong, sorry.

G_M

FBaby wrote: »

Just as curiosity, why? I am not too sure why it would make a difference financially to the tenant whether it was secured with 30 or 31 days, but more importantly, why could they claim 3x the deposit on this basis. How is it affecting them and why would they need compensation of three times the deposit? I don't understand the basis for this ruling.

It is designed as a penalty on the landlord - not as re-imbursement to the tenant (though the tenant does receive it)

The aim is to ensure LL's register deposits in a timely manner.

theartfullodger

FBaby wrote: »

Just as curiosity, why? I am not too sure why it would make a difference financially to the tenant whether it was secured with 30 or 31 days, but more importantly, why could they claim 3x the deposit on this basis. How is it affecting them and why would they need compensation of three times the deposit? I don't understand the basis for this ruling.

Ah, well it's the law see:

Housing Act 2004 214 as modified by Localism Act 2011 S184 see
http://www.legislation.gov.uk/ukpga/2011/20/section/184
&
http://www.legislation.gov.uk/ukpga/2004/34/part/6/chapter/4

The claim is for up to 3x deposit...

If you have a complaint about this please contact Dave Cameron...

Cheers!

G_M

Kayalana99 wrote: »

Bit of a newbie with these things...but once deposit has been secured doesn't the tennant have to ask for it back not the LL? So how can LL return something they don't have?

Or I might be complety wrong, sorry.

Depends which scheme precisely how it's done. But either way, LL can instigate the return.

If LL instigated partial return, the scheme would contact the tenant for consent to the deduction.

G_M

Returning to the original question:

molly22 wrote: »

i have rented out my property 3 months ago ....i am about to serve a section 8 ....on my tenant.
whats steps should I take....
thanks

* write to the tenant
i) reminding them rent is £x per month, due on xth day of each month
ii) rent is currently late, and they are £x is in arrears
iii) enclose a complete statement of rent showing dates/amount rent came due each month since start of tenancy; dates/amount payments received; and balance (credit/arrears) each month ( ie a simple spreadsheet)
iv) requesting they clear the arrears within the next 7 days
v) warning them a S8 Notice will be issued if they do not clear the arrears, leading to court action for termination of the tenancy & re-possession of the property
vi) optionally ask them to ring you, or invite you round so you can discuss the arrears - and agree a re-payment plan (only do this if you are willing to give them time to pay off the arrears at an agreed extra amount each month)

* if the above fails, then after 7 days, issue S8 Notice

Do you have a letting agent? If so, what are they doing/advising? (and why did they mess up the deposit?)

Or are you self-managing? If so, have you joined a Landlords Association? Do it!

Details of LA in this post:

molly22

the tenant has paid £50 rent since the tenancy began 11 weeks ago and ive received £161 via the DSS which has now stopped.
so the arrears to today are £905.

if i return the £500 deposit, i will be £1405 out of pocket, and still have no house to rent out!

im despairing, why are horrid people allowed to treat good people like this and why are all the laws in the tenants favour, or does it just seem that way??

also as the tenant has kept all the DSS housing benefit payments instead of paying them to me is this DSS fraud?

thanks