I never protected a tenants deposit .2yrs plus now.is it too late?what are my options?are there any ot just face incoming fines?ty for any replies.
Yes, its too late to avoid a penalty if the tenant claims one. If you think you may need to serve a s21 notice, you will have to return the deposit or get their consent to use it for rent. As its Xmas, they may welcome a month without having to pay extra.
Thank you for reply.i will return his deposit and tell him his rights to a penalty.I am currently offering him a cash for keys deal as I want to move into the property myself.thanks again
You have no duty to inform him about the deposit breach.
It is not too late to set up a deposit with DPS, don’t return the deposit as that doesn’t give you any protection.
Just put his deposit into a scheme and let him know that it’s now protected.
Going forward you are legit
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Get legal advice which may well be to return deposit in full to tenants asap.
Tenants may or may not know you can be fined 1-3 x deposit and even if they do know, if you are treating them fairly and have a good relationship with them they may not pursue if they have no reason to want to punish you. There’s no reason to tell them of their rights. Just say you are returning deposit (or putting in a scheme if legal advice advises that’s appropriate) as wasn’t done properly originally.
They have up to 6 years after breach to pursue so if you returned now and they then stayed another 6 years that would be only circumstance where a fine wouldn’t be payable if they chose to pursue, which they would likely do after tenancy has ended.
Last i ‘think’ means you possibly can’t use s21 (but that will end from 1 may anyway)
Good luck
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Thank you David I already returned his deposit,despite him signing a previous statement forfeiting it as compensation for damage.he was happy,If he decides to take me yo court in future,so be it.thank you for your help
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