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Remus2004
Remus2004, Barrister
Category: Property Law
Satisfied Customers: 70216
Experience:  Over 5 years in practice.
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I have a tenant in a property who is a colleague at work and

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I have a tenant in a property who is a colleague at work and I rented them the property for a reduced rental of £720 to give them a bit of help. They were given a 12month assured short hold tenancy agreement. Their contract is up for renewal and my husband has requested that the rental be put up to a more suitable rental of £800 even though he had the rental appraised and was told that we can rent it out for £900. We thought this was fair. The tenants were told this was going to happen well over a month ago and have only just come back and said they are not accepting this and are pushing for notice to leave the property. I understand I can serve them a section 21 notice with 2 months notice to leave.They paid a deposit of £1060 over 2 months later than they moved in. I set up a Deposit Protection Scheme account for their previous landlords to transfer over the monies on their behalf. I have now been told by my husband that they gave him the cash and he never deposited it, which I was unaware of. My understanding is that I can not serve the section 21 notice without their being a secured deposit scheme in place. So yesterday I set up an Insured deposit in the scheme. But am now aware that the tenants needed a prescribed information form giving within 30 days of receipt of the deposit, which as my husband never told me he received it, then I didn't print one off as I have only just become aware of its need. Notice needs to be served by tomorrow for it to be effective within the last two months of their contract. I feel the tenant is trying to push us for a reason, maybe to get us in trouble for not depositing the deposit securely or something. But he is being very awkward and rude. What can I do ? Caroline
Submitted: 3 years ago.
Category: Property Law
Expert:  Remus2004 replied 3 years ago.
Thank you for your question. My name is ***** ***** I will try to help with this.

Are you asking how you can serve notice at this stage?
Customer: replied 3 years ago.

I am asking a few things here. Firstly what do I do about the deposit scheme thing, is this gonna be ok that I have only just done it now ?


 


Secondly, if the deposit is ok, then can I serve the section 21


 


thirdly does the tenant have cause to create an official problem for us over the deposit matter ?


 


I just want to make sure I do this properly as time is running out before the 2 month notice period will be out.

Expert:  Remus2004 replied 3 years ago.
Thanks.

On your points in order.

1 No. Its not right to say that there is no claim. If you have protected the deposit late then he does have a claim against you for three times the sum of the deposit although the practical reality is that he will probably only get the sum of the deposit. However, what it does mean is that you can serve a S21 notice and this is an exercise of damage limitation rather than working miracles.

2 If you have protected the deposit now then you can serve the S21

3 Yes. As I said in point 1, he does have a claim under the Localism Act for three times the sum of the deposit.

Can I clarify anything for you?

Jo
Customer: replied 3 years ago.

Thank you.


 


Can you also clarify if when I serve the Notice 21, I also give the details of the secure deposit scheme and the prescribed information form at the same time and if this is acceptable.


 


The tenant will not want to sign them just to be awkward, so is that ok to give all those papers without his signature ?

Expert:  Remus2004 replied 3 years ago.
Well, I wouldn't worry too much about that.

You are in breach anyway. There is no way around it. It doesn't become worse or better at this stage.

All you are doing now is putting yourself in a position where you can serve a S21 notice and bring the agreement to an end.

Whether you breach the prescribed information issue or not, the claim under the Localism Act doesn't get greater.

However, as long as you give him the information that will reduce the aggravation.
Customer: replied 3 years ago.

So the worst that can happen is we pay him back 3 x the deposit amount ??


 


Also he does not get that deposit just because he has asked for it does he, he has to wait until the end of the tenancy doesnt he ?? As the deposit is now secured although it was late ??


 


Can you clarify again these points please.


 

Expert:  Remus2004 replied 3 years ago.
Yes.

And yes. He cannot claim it now.

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