Acura Posted March 28, 2012 Report Share Posted March 28, 2012 I couldn't find a thread regarding this topic already, so thought I'd pass on the info the NLA sent to me about having longer to protect deposits from next month. Hope it's of use if you didn't know about it ... http://nlauk.wordpress.com/2012/03/16/more-time-to-protect-your-tenants-deposit/ Link to comment Share on other sites More sharing options...
Grampa Posted March 29, 2012 Report Share Posted March 29, 2012 This is from the TDS website https://web1.thedisputeservice.co.uk/resources/files/Some%20frequently%20asked%20questions%20on%20the%20changes%20introduced%20by%20the%20Localism%20Act%202011.pdf Link to comment Share on other sites More sharing options...
snorkerz Posted March 29, 2012 Report Share Posted March 29, 2012 Whilst it is true you now have 30 days to protect a deposit, that isn't the full story. Before 6th April you have 14 days, but if you miss the deadline then, hey, who cares? There is no penalty. From 6th April, miss the 30 day deadline and you can't issue a valid section 21 without returning the deposit to the tenant first. Technically, if there was unpaid rent you could agree with the tenant to return £X and keep £Y to cover the rent, but with the threat of an s21 over their heads, the tenant has no incentive to agree. Link to comment Share on other sites More sharing options...
Grampa Posted March 30, 2012 Report Share Posted March 30, 2012 From 6th April, miss the 30 day deadline and you can't issue a valid section 21 without returning the deposit to the tenant first. Technically, if there was unpaid rent you could agree with the tenant to return £X and keep £Y to cover the rent, but with the threat of an s21 over their heads, the tenant has no incentive to agree. That still doesnt stop the the tenant making a x3 claim though. I have also heard of companies starting up already to take advange of the new laws (Localism Act) to get tenants to get their AST's and precribed info checked out and if not done correctly will start the court proceedings for a x3 claim on a "no win no fee" basis. I can see a big change coming soon regarding the taking of deposits. It wouldnt supprise me if you start seeing larger rents without deposits and maybe the requirement of 2 guarantors needed. Link to comment Share on other sites More sharing options...
snorkerz Posted March 30, 2012 Report Share Posted March 30, 2012 That still doesnt stop the the tenant making a x3 claim though.Kind of true - the statutory 3x penalty is replaced by a penalty of 'up to' 3x which will allow judges to diferentiate between intentional and 'accidental' non-compliance. The 'Up to 3x' claim is not likely to be claimed much for smaller deposits because it remains a 'part 8' claim which means minimum court costs of £1000. Thats a big investment for a potentially small recompese. Link to comment Share on other sites More sharing options...
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