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Tenant Deposit


clive?

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Hi there, a colleague of mine had not fullfilled his duty and put the deposit from the tenant in to a government deposit scheme. on leaving the property the tenants had trashed the place causing over £2000 worth of damamge. My colleague was advised by his solicitor that he had a good case, so they went to court. The tenants Lawyer, www.tenantdeposithelp.com acted for them in the recovery of their deposit. Any way The judge threw out the case and said that this was not the point and awarded the tenant £1800 deposit plus costs and a penalty 3 times the deposit. Apparently the landlord failed in his duty to protect the deposit within the 14 day period. and the damage caused by the tenants was inadmissable? His total bill was £9,604.26.

As a new and nieve landlord my self i have not put 8 deposits into a scheme and an worried what to do?

Can i get advice please, as at the moment my tenants are happy and unaware.

Can i put the deposits in the scheme now months later?

Please help, i know your going to rip me but please help, I was unaware of the Government scheme.

Clive

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Hi Clive,

I quite agree with the judge in the case you quote and there is a classic case of solicitors making money out of the naivety of other landlords. The guy did not have a 'good case' but should have rolled over and took the fine.

Yes, is it mandatory to protect deposits of tenants from May 6th 2007 though it is not printed on every advertising hoarding in the country - somehow you are expected to know this.

You personally need to protect deposits immediately. The only scheme that allows late protection is the government run Deposit Protection Service and there are not questions asked online (recommended). Put the www's into your brower and get it online. The site is very easy to use and it is my preferred way as it can all be done immediately as long as you have a printer. They have nice people on the phone if you get stuck. All very friendly and hassle free - do it now!! They do contact tenants to say where the deposit is but now it is protected T's have no case against you.

There that wasn't too painfull was it?

Mortitia

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Everything that Mortitia has said............

I have just rented out a property and not taken a deposit.....foolish or not?

Mel.

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Slightly unusual I agree Mortitiia........I have bought the property... complete next Friday....whereby the people who own it have been living there for 3 years...older couple.....mortgage went up to a horrendous monthly figure when their 3 year discounted mortgage deal came to an end. I have bought the property at 25% below market value.....they were more than happy with that and to take a hit on what they paid for it in 2007 and they will pay me a monthly rent which is roughly 1/3rd of their current mortgage re-payment. It's a deal all around really which suits us both.

As they were older they said they just got so fed up with not being able to enjoy life by going on holiday etc at the age of early 60's.

They have passed all the credit checks.....The property is immaculate and I mean immaculate....they are very nice people as well both in good jobs and very unlikely to stitch me up at any time.

I can't be bothered with the hassle of a deposit either in this case.....it's all their own furniture and immaculate decoration and finish so I am betting that nothing will alter in the next 12 months of tenancy.

As far as I am concerned I am fed up with the paltry interest rates on my savings so have ventured back into the property business again having bought some more property again.......and just sold and completed on one I have renovated only yesterday and I have bought another one for renovation which completes to me in 4 weeks time.

My business really over the past 20 years has been renovation of run-down and neglected property and selling on but I did keep a couple back in the early 90's for reasons I now forget.....lol

I am not renting out anymore renovated properties of mine as such because I just don't need the hassle and time is not exactly on my side either for long term gains.....but that doesn't mean I am dead!! :D

I still have 3 rented out properties though and that is enough for me to cope with. I have had them for nearly 15 years.

Sprightly Mel.

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