deposit and other things

surawy

My daughter moved into a flat this week ---3 bedrooms 2 other girls in place.The outgoing tenant suggested my D pays him the £800 deposit as this is what normally happens as tenants come and go.(illegal)
She is reluctant as she has no guarantees .The landlord lives in Australia says he cannot be bothered to set up a deposit scheme for her Also there is no signed contract.
Landlord eventually says he will pay original tenant deposit back.
Landlord looking to sell flat ---keeps talking about trust!

Any sensible suggestions please

Innys1

surawy wrote: »

My daughter moved into a flat this week ---3 bedrooms 2 other girls in place.The outgoing tenant suggested my D pays him the £800 deposit as this is what normally happens as tenants come and go.(illegal)
She is reluctant as she has no guarantees .The landlord lives in Australia says he cannot be bothered to set up a deposit scheme for her Also there is no signed contract.
Landlord eventually says he will pay original tenant deposit back.
Landlord looking to sell flat ---keeps talking about trust!

Any sensible suggestions please

Move out? Or........have you ever played musical chairs? Well, when the music stops, what happens? In the same way..........

HappyMJ

surawy wrote: »

My daughter moved into a flat this week ---3 bedrooms 2 other girls in place.The outgoing tenant suggested my D pays him the £800 deposit as this is what normally happens as tenants come and go.(illegal)
She is reluctant as she has no guarantees .The landlord lives in Australia says he cannot be bothered to set up a deposit scheme for her Also there is no signed contract.
Landlord eventually says he will pay original tenant deposit back.
Landlord looking to sell flat ---keeps talking about trust!

Any sensible suggestions please

As above...move out. Do the tenants have an address in UK they can serve notices on. It's a HMO but they still need a UK address.

Pixie5740

Trust my !!!!!. Your daughter should find somewhere else to live. Somewhere with a landlord who does protect deposits and does issue tenancy agreements.

The incoming tenant shouldn't pay their deposit to the outgoing tenant. 1) It won't be protected. 2) What if the outgoing tenant has caused damage, who will end up paying for that?

No tenancy agreement so no address for the serving of notice in England or Wales then? Legally tenants can withhold rent.

£10 says this landlord isn't declaring income to HMRC or has neither Consent-to-Let or a BTL mortgage.

surawy

Pixie5740 wrote: »

Trust my !!!!!. Your daughter should find somewhere else to live. Somewhere with a landlord who does protect deposits and does issue tenancy agreements.

The incoming tenant shouldn't pay their deposit to the outgoing tenant. 1) It won't be protected. 2) What if the outgoing tenant has caused damage, who will end up paying for that?

No tenancy agreement so no address for the serving of notice in England or Wales then? Legally tenants can withhold rent.

£10 says this landlord isn't declaring income to HMRC or has neither Consent-to-Let or a BTL mortgage.

Thank you thats very helpful!

G_M

So she's already moved in?
But has not (yet) paid a deposit? Great. No need to pay a deposit then!

Since she has moved in & is (presumably) paying rent, she has a tenancy. She cannot be evicted within the first 6 months (see below).

If the outgoing tenant is asking her to pay the deposit she should politely decline and suggest the tenant claim it back from the landlord.

She has no legal relationship with the outgoing tenant, so does not owe her a penny.

And if she did pay the deposit like this, in 6 months when she leaves, who would owe her the deposit back? Not the LL since she never paid him! The next tenant? No, as explained above! The last tenant? Long gone!

HMRC tax fraud here.

Does she have, in writing, an address in Eng/Wales for the landlord? If no, rent is not due: (Landlord and Tenant Act 1987 ):

48 Notification by landlord of address for service of notices.

(1)A landlord of premises to which this Part applies shall by notice furnish the tenant with an address in England and Wales at which notices (including notices in proceedings) may be served on him by the tenant.

(2)Where a landlord of any such premises fails to comply with subsection (1), any rent or service charge otherwise due from the tenant to the landlord shall (subject to subsection (3)) be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord does comply with that subsection.

Does the LL use an agent? Where/who is the rent paid to? If direct to the LL's account, and the LL is an overseas resident, has the LL given her evidence of a tax arrangement with HMRC? If not, the tenant may be liabke for the LL's tax! So tenant should deduct basic rate tax from the rent before paying the landlord. See HMRC here(Non Resident [= overseas] Landlord Scheme)

(If rent goes to a UK agent, this does not apply as the agent is liable for the tax).

Landlord thinking of selling? He will either have to

* sell to another LL with the tenants in place or
* serve S21 Notices to the tenants and, in your daughter's case, wait till 6 months has passed (Housing Act 1988):

21. (5)Where an order for possession under subsection (1) or (4) above is made in relation to a dwelling-house let on a tenancy to which section 19A above applies, the order may not be made so as to take effect earlier than—

(a)in the case of a tenancy which is not a replacement tenancy, six months after the beginning of the tenancy, and

(b)in the case of a replacement tenancy, six months after the beginning of the original tenancy.

surawy

many thanks that is really helpful---