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runninglea
Posts: 907 Forumite
My work colleague, a couple of weeks ago, asked me to read his tenancy agreement.
He moved in 2 months ago, paid £650 deposit and £650 1st month rent, rent due 4th of every month etc. Pretty standard
However in the agreement it says the deposit is held in a 'deposit scheme'. Nothing has been sent to say the monies have been put in such a scheme.
The house is owned by a limited company, the house is actually at the left of the driveway leading to the factory of the ltd company. He went into the office to enquire about where the deposit was, the directors response was they were holding it. Them being the ltd company.
Is this legal - if not what should the tenant do? Thanks
He moved in 2 months ago, paid £650 deposit and £650 1st month rent, rent due 4th of every month etc. Pretty standard
However in the agreement it says the deposit is held in a 'deposit scheme'. Nothing has been sent to say the monies have been put in such a scheme.
The house is owned by a limited company, the house is actually at the left of the driveway leading to the factory of the ltd company. He went into the office to enquire about where the deposit was, the directors response was they were holding it. Them being the ltd company.
Is this legal - if not what should the tenant do? Thanks
Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
.1%) (42/100) payments made. Total paid 2019 year £1,700
Total paid 2017 year £15,300Total paid 2018 year £13,600
.1%) (42/100) payments made. Total paid 2019 year £1,700
Total paid 2017 year £15,300Total paid 2018 year £13,600
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Comments
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Is it an Assured Shorthold Tenancy?0
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There are 3 companies that administrate deposit protection, if you Google ' Check Deposit Protection ' shelter have the links to each schemeside search page (my stupid phone won't do clipboard today so I can't link!, maybe somebody else could add the link?)
First step is to actually check out if any do have it registered.
Bear in mind 1 option is for the landlord to keep the deposit themselves (insurance scheme) that might be what they mean, but it still needs to be registered with 1 of the 3 deposit companies.
Incidentally what is it your pal wants to achieve from this info?0 -
There are 3 companies that administrate deposit protection, if you Google ' Check Deposit Protection ' shelter have the links to each schemeside search page (my stupid phone won't do clipboard today so I can't link!, maybe somebody else could add the link?)
First step is to actually check out if any do have it registered.
Bear in mind 1 option is for the landlord to keep the deposit themselves (insurance scheme) that might be what they mean, but it still needs to be registered with 1 of the 3 deposit companies.
Incidentally what is it your pal wants to achieve from this info?
Most likely wants the compensation available.... I would say dont dont worry about it till the end of the tenancy, at which point ask which of the 3 schemes it was registered with... If none then the deposit needs to be returned in full and compensation of upto 3 times the deposit can be claimed....
I fear in this case as the person is asking so early, and an unintended consequence is they may be trying to stop paying rent, and because the deposit is not protected the landlord even has to return that amount and cannot use it to ofset the rental amount owed, also the tenant would still be entitled to compensation. Or the OP's "friend" may just be after a bit of compensation, there are loads of firms out there now in a sort of PPI claim style... Can't believe some landlords are still exposing themselves to this by not complying.0 -
Most likely wants the compensation available.... I would say dont dont worry about it till the end of the tenancy, at which point ask which of the 3 schemes it was registered with... If none then the deposit needs to be returned in full and compensation of upto 3 times the deposit can be claimed....
I fear in this case as the person is asking so early, and an unintended consequence is they may be trying to stop paying rent, and because the deposit is not protected the landlord even has to return that amount and cannot use it to ofset the rental amount owed, also the tenant would still be entitled to compensation. Or the OP's "friend" may just be after a bit of compensation, there are loads of firms out there now in a sort of PPI claim style... Can't believe some landlords are still exposing themselves to this by not complying.
No doesn't want compensation, just that the last rental deposit was held in a scheme and thought all deposits should be put into one now.Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
.1%) (42/100) payments made. Total paid 2019 year £1,700
Total paid 2017 year £15,300Total paid 2018 year £13,6000 -
Yes you're right they should be protected, but not doing so doesn't make the contract null or the (non)action illegal.
If they haven't they're pretty stupid though as it'll only make their life more difficult & the fine/compensation is guaranteed!
buggy_boy I didn't want to cast aspersions lol!0 -
Yes you're right they should be protected, but not doing so doesn't make the contract null or the (non)action illegal.
If they haven't they're pretty stupid though as it'll only make their life more difficult & the fine/compensation is guaranteed!
buggy_boy I didn't want to cast aspersions lol!
The reason he was looking at the rental agreement with me was that he had a letter put through his door saying his rent was late. The letter/date was 2nd whereas on tenancy it states rent due 4th every month. When he went into company they said it was due 1st.
When he was checking date - thats when he read about deposit in scheme and that nothing had come through. It wasn't the best way for company to be only 2 months into agreementYear 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
.1%) (42/100) payments made. Total paid 2019 year £1,700
Total paid 2017 year £15,300Total paid 2018 year £13,6000
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