Tenancy Deposit + Fees

georgie_p

Good morning all,

Our tenancy is due to end in August 2021 (it was extended from 8th June 2021) as we are buying our first home. I'm just trying to work out some of the deposit and fees information we paid at the beginning of our tenancy to make sure we aren't paying for illegal fees.

The initial tenancy started on 8th June 2018 and we paid the following:

• Security deposit: £861.54
• First rent payment: £550
• Admin fee: £225
• Guarantor fee: £150
• Initial payment: -£150
• Total: £1636.54

We received an email in 2019 stating the deposit of £1723.08 minus 5 weeks rent of £1269.22 would be refunded to us (total = £453.86).

I'm no mathematician, but those numbers don't all add up to me. Aside from our protected deposit of £1269.22 with MyDeposits, and the refund of £453.86 we have already received, should we be getting anything else back due to the tenancy fee ban?

I also note that since our tenancy was extended until the end of August, we haven't received another email from MyDeposits, so the end of protection was 07/06/2021. I assume I need to contact the letting agent to extend the coverage?

Thank you for reading if you've got this far!

Georgie

grumiofoundation

https://www.gov.uk/government/collections/tenant-fees-act

"The ban on tenant fees applies to new or renewed tenancy agreements signed on or after 1 June 2019."

So if agreement signed before then you won't be able to get fees back.

Your deposit numbers don't match:

• Security deposit: £861.54
• First rent payment: £550
• Admin fee: £225
• Guarantor fee: £150
• Initial payment: -£150
• Total: £1636.54

We received an email in 2019 stating the deposit of £1723.08 minus 5 weeks rent of £1269.22 would be refunded to us (total = £453.86).

Aside from our protected deposit of £1269.22 with MyDeposits

Which is it? How much deposit did you pay? (and is it now protected? - see below).

I also note that since our tenancy was extended until the end of August, we haven't received another email from MyDeposits, so the end of protection was 07/06/2021. I assume I need to contact the letting agent to extend the coverage?

If the deposit is not protected you cannot be served a section 21 eviction notice. 
You can also make a claim for compensation from the landlord. 

(Assuming it is actually not protected - have you checked with the deposit scheme?)

https://england.shelter.org.uk/housing_advice/tenancy_deposits/what_to_do_about_an_unprotected_tenancy_deposit

georgie_p

grumiofoundation said:

https://www.gov.uk/government/collections/tenant-fees-act

"The ban on tenant fees applies to new or renewed tenancy agreements signed on or after 1 June 2019."

So if agreement signed before then you won't be able to get fees back.

Your deposit numbers don't match:

• Security deposit: £861.54
• First rent payment: £550
• Admin fee: £225
• Guarantor fee: £150
• Initial payment: -£150
• Total: £1636.54

We received an email in 2019 stating the deposit of £1723.08 minus 5 weeks rent of £1269.22 would be refunded to us (total = £453.86).

Aside from our protected deposit of £1269.22 with MyDeposits

Which is it? How much deposit did you pay? (and is it now protected? - see below).

I also note that since our tenancy was extended until the end of August, we haven't received another email from MyDeposits, so the end of protection was 07/06/2021. I assume I need to contact the letting agent to extend the coverage?

If the deposit is not protected you cannot be served a section 21 eviction notice. 
You can also make a claim for compensation from the landlord. 

(Assuming it is actually not protected - have you checked with the deposit scheme?)

https://england.shelter.org.uk/housing_advice/tenancy_deposits/what_to_do_about_an_unprotected_tenancy_deposit

Thank you, I don't know why the numbers don't match up, I'm just going on the emails they sent me. I am on a live chat to MyDeposits to find out if the deposit protection has expired and will go from there.

I appreciate the information.

Also, if the ban didn't come into force until after the tenancy, why did they refund £453.86 in 2019?

MaryNB

Looks like everything has been doubled.
Are your initial numbers per person on a two person tenancy?

£861.54 x 2 = £1,723.08

After the tenancy fees act they had to refund anything above 5 weeks' worth of rent
£550 x 2 = £1,100
£1,100 x 12 months = £13,200
£13,200/365 x 35days (5 weeks) = £1,265.75 (slightly out from your number above)
Refund = £1,723.08 - £1,265.75 = £457.33

Tenancy fees act requires a refund of part of any existing deposit that is above 5 weeks' worth of rent. It doesn't allow for a refund of fees that were charged before the act came into place.

MaryNB

Regarding protection of the deposit, for a custodial scheme the protection should apply unless there's a change to the tenants/landlord/address/scheme. As long as you remain in the property with the same landlord under the same scheme you should still be protected if the deposit is in a custodial scheme but best still to check with the relevant scheme,

georgie_p

grumiofoundation said:

https://www.gov.uk/government/collections/tenant-fees-act

"The ban on tenant fees applies to new or renewed tenancy agreements signed on or after 1 June 2019."

So if agreement signed before then you won't be able to get fees back.

Your deposit numbers don't match:

• Security deposit: £861.54
• First rent payment: £550
• Admin fee: £225
• Guarantor fee: £150
• Initial payment: -£150
• Total: £1636.54

We received an email in 2019 stating the deposit of £1723.08 minus 5 weeks rent of £1269.22 would be refunded to us (total = £453.86).

Aside from our protected deposit of £1269.22 with MyDeposits

Which is it? How much deposit did you pay? (and is it now protected? - see below).

I also note that since our tenancy was extended until the end of August, we haven't received another email from MyDeposits, so the end of protection was 07/06/2021. I assume I need to contact the letting agent to extend the coverage?

If the deposit is not protected you cannot be served a section 21 eviction notice. 
You can also make a claim for compensation from the landlord. 

(Assuming it is actually not protected - have you checked with the deposit scheme?)

https://england.shelter.org.uk/housing_advice/tenancy_deposits/what_to_do_about_an_unprotected_tenancy_deposit

I've just spoken to MyDeposits and they have confirmed this:

"As far as I can see, it has not currently been extended after this date

It's still protected, after the end date of the tenancy, the landlord/agent has 30 days to update the protection (either extend or renew)

Otherwise it becomes unprotected"

I assume if they don't extend it within 30 days which would be 7th July, then they are breaking the law?

georgie_p

MaryNB said:

Looks like everything has been doubled.
Are your initial numbers per person on a two person tenancy?

£861.54 x 2 = £1,723.08

After the tenancy fees act they had to refund anything above 5 weeks' worth of rent
£550 x 2 = £1,100
£1,100 x 12 months = £13,200
£13,200/365 x 35days (5 weeks) = £1,265.75 (slightly out from your number above)
Refund = £1,723.08 - £1,265.75 = £457.33

Tenancy fees act requires a refund of part of any existing deposit that is above 5 weeks' worth of rent. It doesn't allow for a refund of fees that were charged before the act came into place.

Yes, it is a two person property. Thank you for the info