Has anybody been awarded 3x their deposit because of TDS?

antonia86

I'm having a lot of difficulties with my current LL, and am thinking about beginning court procedings as our deposit is not in registered scheme and a lot of the points on our agreement have been totally ignored. Our LLs are entirely at fault as we, not to blow my own trumpet too much, have been perfect tenants.:A

If any could point me in the right direction as to how to begin I would very much appreciate it!

irnbru_2

antonia86 wrote: »

If any could point me in the right direction as to how to begin I would very much appreciate it!

When did you last sign an AST?

Read the mother of all deposit recovery threads.

If you have deposit recovery story please start a new thread - you never know we may even get a sub-board :rotfl:

RabbitMad

pickles110564 wrote: »

I think there should be a scheme that if the tenants trash the property they have to pay 3x the cost of repairs.
Also if they do not pay their rent there should be a scheme that they have to pay 3x their outstanding debt and until they pay they are not allowed to rent anywhere else.:D

I disagree. This 3 times penalty is not to catch out rogue landlords, it is to assist in tax collection as the Government can look at the records the TDS hold. It is a reward that the tenant can get for shopping their Landlord.

Where is the incentive for the Government to penalise tenants and reward Landlords?

However how long do you reckon before the 3x penalty gets classed as taxable income and HMRC go after the tenants who received it?

diamond_dave

My tenant left suddenly at the end of Jan having flooded the flat and causing £100's worth of damage. Having put the deposit with the DPS I stupidly thought that I would get the money back quickly - as of today I still havent received the money and have only just relet the property - this has cost me £000's!! i know that some landlords are rogues but so are some tenants.

RabbitMad

1-1

An existing tenancy renewed after 5th april

http://www.landlordzone.co.uk/forums/showthread.php?t=10810

RabbitMad

2 - 1 to the tenants

Another existing tenancy (so on existing tenancies its 1-1)

http://www.landlordzone.co.uk/forums/showthread.php?t=8739

ali82

Just keeping you all posted.

I filed my N208 form, they asked for an extension which was granted and we are now waiting for a Directions Hearing to take place shortly, I'll let you know what happens

bluejake

RabbitMad wrote: »

I disagree. This 3 times penalty is not to catch out rogue landlords, it is to assist in tax collection as the Government can look at the records the TDS hold. It is a reward that the tenant can get for shopping their Landlord.

Where is the incentive for the Government to penalise tenants and reward Landlords?

However how long do you reckon before the 3x penalty gets classed as taxable income and HMRC go after the tenants who received it?

That's baloney. The scheme was introduced to protect tenant's deposits. Many many Landlords just pocketed this money and tenants were just ignored or palmed off. Tenants did not have the know how or means to get their money back.

With the growth of BTLs it wouldn't be surprising if even more regulation comes into being to protect those families who have no choice but to rent in the insecure private sector. After all taxpayers are often paying the rent via housing benefit and no doubt MPs get fed up of hearing the same problems over and over again.

No big deal if landlords have to actually do something to earn their money. And they should pay their taxes like everyone else but to suggest that was the purpose of the scheme is bollards. It came about after campaigning from shelter and the C.A.B and MPs themselves were sick of hearing about it at their surgeries.

If Landlords want to blame anyone for the existence of the scheme the need only look in the mirror.

clutton_2

""Tenants did not have the know how or means to get their money back.""

lets not tug at too many heart strings here please

the amount of free advice available for tenants, from councils, from private charities, CAB, landlords documentation etc etc is huge and has been so for many years.

LLs get no such advice.

Prior to TDSs - tenants had to take LLs to court if they did not get their deposit back - if there is a dispute now - tenants may STILL have to take their LLs to court as the TDS T&Cs cannot force either LL or Tenant to accept the Scheme's Arbitration Service to mediate in a deposit-argument - and thus the final stage in deposit recovery is Still the courts.

to my mind very little has changed ..... except my costs have gone up as a LL re lodging deposits with schemes and writing endless letters to the Schemes in arbitration situations.

RabbitMad

bluejake wrote: »

That's baloney. The scheme was introduced to protect tenant's deposits. Many many Landlords just pocketed this money and tenants were just ignored or palmed off. Tenants did not have the know how or means to get their money back.

I'll have to disagree with you there. I'm all for protecting tenants deposits but I believe the way that this shambles have gone about this has something so orwelian about it that there has to be another motive even more compelling than that.

I believe clamity gordon is on record as saying he was concerned that a lot of BTLers were avoiding tax and he was going to do something about it - then this?

Dancing Ken for PM!