@Karl11 - thank you. Any suggestions on what might happen if I leave the deposit protected in our personal names? Given myself and my husband will be operating the new company too, do you foresee any issues while releasing the deposit should the tenant decide to end the tenancy at some point in the future?
1 Like
If the landlords name on the deposit and therefore Prescribed Information is not the same as the landlords name on the tenancy agreement, I dont think it will be properly protected and the landlord would be liable for a deposit penalty.
@David122 but seems Openrent think an agent or representative is OK. Just found their guidance here
"Does the account have to be in the same name?
In short - no, there is no legal requirement for the name on the landlord’s account with the deposit agency (e.g. MyDeposits) to be the same as the landlord’s name on the contract.
Housing Act 2004, chapter 4, section 212 (9a) states:
“references to a landlord or landlords in relation to any shorthold tenancy or tenancies include references to a person or persons acting on his or their behalf in relation to the tenancy or tenancies”.
So, if a landlord asked a third party (who could be an individual or an agent) to deal with a deposit on their behalf, that person would take on the obligations of the landlord."
The issue will arise if OR automatically inserts the account holder name in the PI it generates and doesnt allow amendments. I acknowledge that I know nothing of the OR Rentnow process so this may not be applicable.
1 Like
Thank you @Christoforos . Did you add to the new contract any wording on tenants requiring to pay in the deposits? Or did the tenants just do it based on trust?
Hi @Sindhu @Christoforos I have been going through this comments trail and find myself in a very similar situation.
For context, I have transferred property to my wife’s name with tenants living in the property.
My wife has served Sections 3 and 48 notices so assuming that take cares of contract transfer as new landlord inherits all existing tenants and terms of their current tenancy agreement (although appreciate if someone could verify that)
However, unsure of deposits - currently under my name protected via MyDeposits but assuming that needs to be transferred to my wife’s name? I use OpenRent and it doesn’t let me simply do this without paying deposit back to tenant and redoing tenancy agreement with existing tenants. The tenants are not in favour of doing new contracts. I spoke to MyDeposits as well and they said given I used a letting agent (OR in this case) so only OR can do this change, which obviously brings me back to square one.
@Jitin contact OR support tell them the LL has changed and the s3 and s48 notices have been served and the tenancy is now in your wife’s name. Offer to provide copies as proof of the change of LL. Ps think the s3 and s48 have to be served by existing LL ie yourself, and the new LL has to provide the tenants with the new contact details (so they know whom to write/email to and where if they need to give notice etc)
Instruct OR to change the name of the LL on the mydeposits account with the new LL name address and contact details. That is very simply their job as the agent working for you who arranged the deposit with Mydeposits.
If you have any difficulties contact (DM) @Dan4 in OR’s legal team or @mod_emma or @mod_harry but this should be a totally straightforward task for OR to carry out for you.
OR should be able to amend the contract with new LL details too, again without needing to return deposit and get a new one. They specifically tell you (look under ‘amend tenancy options’ ) that you can notify them and they can amend deposit details when a property is sold with tenants in place - see screenshot
Good luck
@Jitin - we had the exact same problem. The small difference is, my husband and I were owners of a property which we moved to a limited company ownership which we both own.
Openrent were not at all helpful - they said the only way names of owners can be changed is by creating a new contract, which then means listing it and getting the tenants to go through the whole process, refunding their deposit and putting it under a new deposit protection. We also contacted mydeposts and got the same response as you that they need OR to make the changes and that they cannot do anything. Basically we hit a wall with OR and mydeposits.
So we have decided to serve notices S3 and S48, and we are planning to leave the deposit untouched. Ultimately it is still going to be “you” as a person that is going to be dealing with the deposit refund.
Its not about who is refunding the deposit, its about whether the account and the prescribed information has the name of the current landlord. You will be in breach if you dont get it amended.
Thanks for your message. I am not sure how to directly message but tagging again @Dan4 @mod_emma and hoping get a solution.
OR customer support team gave me exact same response suggesting ending / redoing new contract with existing tenants - which is against the New Renters Rights Law as can’t cancel contract for simple administrative reasons. If OR acting as my agent, then they should be able to sort out changing name / issuing new Deposit Certificate on the new Landlord’s name.
@Jitin follow the process on the screenshot to send an email to the correct contact/team at OR. Suspect the usual OR customer support won’t do it as they are trained to get more business including getting you to do a new contract.
You can DM by clicking on a profile
Good luck
If that really is the case then OR need to sort this out. Creating a new tenancy is not in the landlords interest and in any case requires the tenants consent, which they may not give. Its possible that the OR software didn’t anticipate a change of landlord and theyre now looking for “workarounds” rather than re-programming or changing the parameters of the deal with Mydeposits. If they can’t sort it out, you may have to ask them to refund it to the tenant and see if the tenant is willing to re-pay it so that you can protect it yourself under the new landlord’s name.
Thanks @David240 , I had already followed this approach as shown in the screenshot - it took me to emailing the Deposits Team but I still got the response from their customer support team and exactly the same response that OR can only do this via Rent Now (breaking current contract and setting up new) - which I am not sure is even allowed under the new Renters Rights Law as wouldn’t make sense to end an agreement just for admin purposes.
Still struggling to DM someone in here - possible to send a screenshot? I’ll like to try that avenue as well.
It’s perfectly reasonable to ask tenant to sign contract with name and details of your wife to replace current one, it doesnt affect any tenant rights. It’s more than just admin tho it is odd they will allow tenant names to be changed without a new contract. I guess it’s a case of getting a cheap service so there is less flexibility.
To dm someone click on their name and you’ll get a pop up box with the option to message them
Unless you were considering eviction on the grounds that aren’t allowed in 1st year of tenancy then it doesn’t affect you/your wife as LL either. I’m not even sure a change of contract/new contract on exactly the same rent and other terms would be seen as a new tenancy anyway - @David122 may be able to advise
Openrent guidance on this is clear
"Using our free renewals service, you can’t currently:
- Change the landlord
- Add or remove landlord co-signatories
- Increase deposit amount
- Change the property address
- Change the day of the renewal date as it must be in the future and the same day of the month as the original contract
- Make any changes if your property is in Scotland
If you would like to change any of the above you’ll need to create a new tenancy through Rent Now.
This will involve refunding the deposit held on the first tenancy to the tenants. As this would be an entirely new Rent Now this will be charged at the standard Rent Now price."
This is of course contrary to the indication given that they can change name on deposit scheme when a property is sold with tenants in situ, continuing the tenancy. Suspect it is OR reducing what they offer
Best
Its perfectly straightforward to change the landlord by serving a s3/s48 notice without changing the tenancy. That OR doesn’t allow this is a weakness in their system. A transfer of ownership to a partner doesn’t necessarily require a transfer of landlord. Its possible for this to remain with the existing landlord and the new owner grant consent to let. However, landlords who think they might in the future want to incorporate or sell to another landlord should think twice about using RentNow.
1 Like
I think the key words here are “using our free renewals service” you can’t currently change the LL.
There should be no reason why the details can’t be changed NOT “using our free renewals service”. A renewal shouldn’t be required at all!
I wonder what “The Property Ombudsman” would have to say about this?
Gov.uk states you must provide “their” [LL] “(or the letting agency’s) name and contact details” to be compliant with deposit protection rules.
If Openrent are the agency through Rentnow, isn’t that still covered because Openrent’s details have been provided?
1 Like
@Tim43 indeed and there’s absolutely reason @Jitin can’t act as an agent for his wife for the purpose of dealing with OpenRent/the mydeposit scheme when it gets to the end of the tenancy if his wife wants to decide to claim something back from the deposit at that point.
Similarly so long as the current address for @Jitin on the tenancy agreement works if the tenant ever needs to write to LL direct (to serve notice etc) then there isn’t really any problem esp as the s3 and s48 served outside of the OR system will override that anyway.
Only issue would be if for some reason @Jitin 's wife wasn’t happy with @Jitin acting as agent dealing with the deposit.. (divorce!)
Best
I think the property ombudsman would say letting agents and platforms are free to choose which services they offer and which they don’t. Cheap and cheerful means less flexibility and less non standard things.. A traditional letting agent would subcontract to a solicitor and charge a hundred quid or more for any change like serving the s3 and s48 and LLs save £000s by using the likes of OR and hello neighbour and doing a lot of stuff themselves.
It’s like any ecosystem (apple, windows etc) - once you’re in it there are limitations
Best
I certainly take your point but Openrent are placing the LL in a position where they “must” pressure the tenants into accepting a new tenancy. The LL is either going to be in breach of the Renters Reform Act or having to accept the new owner (who might NOT be their spouse) being the person they are holding a deposit for.
I can’t see tenants being happy to renew with Openrent, given the onerous requirements of paying deposit and full month’s rent upfront before the new tenancy can be confirmed, all whilst the existing deposit hasn’t got back to them yet! Even less so if vetting for RGI etc might be desired too.
What can the LL do?
Could the LL transfer the deposit to another scheme, so that the new scheme can have the correct details? (Agree with tenant to unprotect deposit on the basis that they will immediately reprotect in a different scheme)