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deposit mess


jackoo11

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I took over an ast that was drawn up by an agent.- the owner transfered it to me to run the flat. they gave me the contract (4mths to run -bac then)and deposit of the 2 joint tenants. only it was just over 2 mths before i registered the deposit. That was 2 years ago and ive allowed things to stay same. Now i want to evict the tenants as they ignore my requests to sign a new(my first) contract for a higher rent. I want to evict them and issue a S21(4) notice. but i now realise i was supposed to tell the tenants know about the deposit (certificate). The former agents obviously told them about deposit protection so they effectively knew how it worked. They still pay the rent but im now wondering how to proceed and whether i shld give them a certificate or just return their deposit. Or do i get the dps to give it to them. Or do I just go ahead with the S21 =im really in a mess.

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Firstly you don't need the tenants to sign a new contract in order to increase the rent. You can use a Section 13 form (google it) or just send a letter saying ' that from ---/--/-- the new rent is XXX pcm. In the original agreement it should say something like ' the rent cannot be increased by more than 3 % in one year'.

The deposit - so the agent protected the deposit? If so he must have given you the details of the ID and that will in return give you the repayment number.

Since deposit was taken before 'prescribed information' came in last May you might get away any problem there especially since tenants would have to bring a major case against you - small claims court does not cover none protection of deposit.

As long as deposit is protected you can issue Section 21. No protection and the S21 is not valid - so best way forward in that situation is to refund the deposit and then issue Section 21 -make sure you do it correctly.

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m I am eternally grateful for your help. But the original agents gave me their deposit in cash -so unregistered it. I had to set up a new one -which I did do (after 2 mths) only I have only just foundout that I was supposed to inform them or issue a certificate or something. Do u think that can be an issue.

Lastly can i ask u how I go about giving them their deposit back. Do I contact the DPS first or do I just send them a cheque and contact the Dps after they cash it. The tenants have ignored my requests to sign a new contract for a higher rent so I have a feeling that oneway or another they are going to be problematic--I cannot see them taking any notice of an increase in the rent and even if I do as you suggest ---I thought I have to give them 2 months Notice first of any increase ? Again thank u so much

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Jackoo - the deposit is protected - fine. The' prescribed information' or 'certificate' as you inaccurately describe did not come into force until much later so just proceed with Section 21 or increase the rent. It is unlikely you will be penalised in any way.

If you are an agent I'd give it up now!

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M --sorry to hound u but do u know if im ok to serve S21 though or is grampa right and I have to serve the belated prescibed info first ? As (at the moment) I am still trying to workout how I should repay the deposit (ie through the Deposit protection scheme or myself with a cheque). I never dreamed managing a small flat could be so complex !

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Call the DPS and ask them where the deposit is and what their take is on your situation - they are quite friendly and informative I find and are not out to get you in any way.

If you re-pay deposit from own funds you will still have to get it from the DPS and account for why you want it personally. Easier to get them to repay it to the tenants if that is the route you want to take.

I still stick with the fact that giving the 'prescribed information' only came in May 2012 - that was on new deposits but your tenancy started way before then. Like I said before the tenants cannot bring a small claims action against you over the deposit and a Section 21 guarantees possession and you have protected the deposit - all fine.

Start with contacting the DPS - phone number is on their website.

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Before May 2012 I was of the belief we had 14 days to take deposit, provide the 10 pages of prescribed (bloody silly and repetitive) information, take receipt (in the form of a T signed last page), clear our funds and lodge with the DPS. In May that period was increased to 30 days.

The signed info demonstrated that the T's had the information of how to recover the deposit. After all we (unfortunately) have to take the deposit if they don't know how to recover it then they've lost it (not that I would be worried by that but we do have to nanny them don't we ?)

As I read the revised situation the courts now have less discretion as 'some' of the ambiguity (although maybe not the confusion) has been sorted.

As Mortitia ask the DPS (I've never considered that one strangely). If you were to pay from your own funds I think you will be just making a gift to them.

Where I'm wrong please feel fee to put me right, anyone.

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I use the TDS insurance based scheme and I think where the confusion lies is that we have to download a one page certificate as well after registering/protecting which is required to be given to the tenant on top of the normal paperwork.

This is separate (or I have always known to be) to the prescribed info which can be anywhere between 4-12 pages long and gives the info relating to the deposit scheme and what to do if there is a dispute.

Mortitia I have just checked and tucked away on my PI it does state certificate as well so my apologises for that but the PI/Certificate was a requirement back in April 2007.

Jackoo11 I think as long as you have confirmation from the DPS that the deposit is protected and you have a copy of the PI/Certificate it should be ok to serve a s21.

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