S21/ Govt deposit scheme

castle96

Hi, Son wants to sell his rental/BTL property NOW (many reasons). Tenants have been in since 2019. Have tenancy agreement. He tooka months deposit but never registered it. with Govt deposit scheme (twit - why not). He understands that as he didn't register having received the deposit within 14 days of tenancy commencement (he took cash - self employed) he cannot issue S21 and/or if tenants contest and it goes to Court, he could be penalised with N x mthly rent and tenants given 4/6?? mths leniancy.

Have tried too research this but cannot confirm/deny above. He wil not occupy the property (has just moved himself), tenants have always paid. They will no doubt go to the Council > CAB. Any thoughts please

TIA

theartfullodger

He should return deposit NOW (if possible say bank transfer so he has proof). And then since he made this daft mistake check that there is no other s21 pre-req that he's missed. See…from the experts in these matters…

https://england.shelter.org.uk/housing_advice/eviction/section_21_eviction/how_to_check_a_section_21_notice_is_valid

In my experience being friendly and polite, explaining what you wish to do, smiling can improve matter. Perhaps bribery may (or may not) help.

The tenants obviously still have the right to claim up to 3xdeposit for his stupidity.

I hate to be brutal but has he done any education or training in how to be a landlord?? Or taken advice from a landlord association?? Which country?? (eg England, Wales…)

Good luck……

castle96

The deposit would of course be returned/signed for

anselld

He could sell with tenant in situ.

He could wait until 1 May and then serve notice under Section 8 Ground 1a intention to sell. ( AFAIK there is no defence based on lack of deposit registration as there was with s21).

To be fair he could (and should) still register the deposit. Better late than never. Hopefully he does still have it.

flaneurs_lobster

Come 1 May July and the new Renters' Rights Act, Section 21 evictions become a thing of the past.

At least there's one thing this Government has got right.

Landlord could try paying the tenants compensation, try a year's rent and work upwards.

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/6665584/s21-govt-deposit-scheme

He would need to return the deposit to the tenants before issuing the section 21. He will need to get his skates on as 30th April is the last day he can serve a section 21. The tenants could still sue for not protecting the deposit and the court must award 1-3 times the value of the deposit to the tenants.

Is there any other prescribed information he failed to do that could invalidate a section 21?

https://nearlylegal.co.uk/section-21-flowchart/

gazfocus

Also worth mentioning that if the tenants have signed subsequent tenancy agreements since the initial one, they can technically claim 3x the deposit for each tenancy agreement they signed.

As above, get your son to return the deposit NOW and then issue the section 21. When he issues the Section 21, tell him to send with it copies of the EPC, Gas Safety certificates and How To Rent guide (as well as the Renters Rights Act information sheet) but he really needs to get his skates on otherwise he'll miss the deadline. The tenants will need to have RECEIVED the section 21 by 30th April for it to be valid.

If he misses the deadline for Section 21, he will need to do a Section 8 and the notice period will be 4 months.

TroubledTarts

https://forums.moneysavingexpert.com/discussion/comment/81976070#Comment_81976070

1st May correction

And a whole years rent, wow that is crazy.

Remembering as of 1st May selling your property is a legal reason to evict tenants.

As for the deposit mishap yes a court could decide to award either what the tenants paid up to three times the amount but definitely not 3 times the amount is awarded all the time.