LEGAL latest: Landlord’s cavalier approach to deposit ends up in court

A prospective tenant has been awarded his holding deposit back by a First Tier Tribunal after realising ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - LEGAL latest: Landlord’s cavalier approach to deposit ends up in court | LandlordZONE.

LEGAL latest: Landlord’s cavalier approach to deposit ends up in court

A prospective tenant has been awarded his holding deposit back by a First Tier Tribunal after realising the landlord had demanded too much money.

Student Oluseyi Aina agreed to take a room at a house in Southbridge Road, Croydon, after seeing an advert on spareroom.com.

Landlord Janice Oliver requested £300 as a holding deposit, which he paid by bank transfer, but then found out this was not allowed because the rent was £500 per month and the maximum permitted payment was £115.38 – one week’s rent.

Aina asked for a refund but Oliver told him she would only return £100 and would keep £200 as admin fees. She added that the property had since been let out by her husband. After the conversation, he had sought advice from the Shelter helpline.

Oliver told the court that Aina had difficulty in raising the money for the rent and that she decided to let the property out for a fortnight to give him time to do this.

Daily rent charge

Oliver indicated that a daily rent would be charged which would be forfeited if he did not take up the tenancy.

She said he told her he no longer wanted the property and suggested that he had made the application because she was unwilling to return the full sum of £300.

However, that: “A landlord must not require a relevant person to make a prohibited payment to the landlord in connection with a tenancy of housing in England.”

It said the payment of £300 fell within the definition of a holding deposit and that as it represented more than one week’s rent, the excess over £115.38 was a prohibited payment. The landlord and tenant had also failed to before the deadline for agreement.

Read more about holding deposits and the law.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - LEGAL latest: Landlord’s cavalier approach to deposit ends up in court | LandlordZONE.

Source : Landlord Zone More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

OPINION: Is banning Section 21 evictions a bridge too far for the government?

In January LandlordZONE predicted that the Renters Reform Bill was to have been well on its way ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - OPINION: Is banning Section 21 evictions a bridge too far for the government? | LandlordZONE.

OPINION: Is banning Section 21 evictions a bridge too far for the government?

In January LandlordZONE that the Renters Reform Bill was to have been well on its way through parliament by now.

At the time, the government had been promising for month after month to fix the ‘broken’ private rental market.

Ministers had said repeatedly this was to be achieved through the Bill which would ban Section 21 evictions, give tenants more security in their tenure via longer contracts and make it easier to manage deposits, among other things.

But this week’s Queen’s Speech ‘kicked all of this into the long grass’, as one senior landlord figure put it to me; the government is starting from scratch with a White Paper in the Autumn, after which fresh proposals and legislation may be announced.

Landlords, letting agents and even tenants’ organisations are baffled by this – there have already been two consultations for the Renters Reform Bill, so who why do it all again?

The ‘real politick’ of this is that giving renters more rights sounds great during hustings but is very tricky to implement on the ground, whatever Shelter might say, and also expensive to police.

Keeping tabs on deposits and redress within the rental deposit can be done by people on call centres. Ensuring tenants are treated properly requires boots on the ground, knocking on doors.

Two-year roadmap

So action is to be delayed. And looking at the schedule, for some time. LandlordZONE estimates that if the White Paper is published in September, followed by a 12-week consultation and then draft legislation is laid in parliament in early 2022, it will take around nine months to make it to Royal Assent.

So late 2022 at the earliest, with implementation likely to take another 12 months to give landlords, agents and tech time to get ready (like the Tenant Fees Act did) – so a potential 28-month or two year roadmap, which would take it perilously close to the May 2024 election.

Most experts agree that the government will, instead, cut out all the difficult stuff like lifetime deposits and instead focus on balancing the rights of tenants and landlords so that renters get longer, more stable tenancies should they want them, and courts are given more discretion when granting evictions.

I suspect, as The Law Society has suggested, landlords will have to grant longer contracts, give tenants much longer notice periods when seeking to regain possession and even reimburse tenants should they wish to move back in or sell a property earlier than agreed.

On the other hand, tenants who deliberately dodge paying their rent, make too much noise or sell drugs from their front door, for example, will be ejected much more quickly and cheaply than now.

Unfortunately, we will have to wait another four months to find out.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - OPINION: Is banning Section 21 evictions a bridge too far for the government? | LandlordZONE.

Source : Landlord Zone More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.