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Question

Deposits and Tenancy Deposit Schemes (England)

Deposits and Contractual Periodic Tenancies

4 Jun 2018 | 5 comments

An Assured Shorthold Tenancy commenced on 01/09/2016 as a periodic tenancy. There was no initial fixed term. The deposit was not protected until 05/04/2018 (20 months later). Is the landlord’s liability limited to paying the tenant up to three times the amount of the deposit (should the tenant issue a claim) or given that it was a periodic tenancy from the start will there be additional implications / liability for the landlord?

Answer

5 Comments

  1. guildy

    Although this specific type of case has not been tested to our knowledge, in our view, a tenancy like this should only attract a single penalty for the single initial failure. A periodic tenancy is not a new tenancy at each period but is a single periodic tenancy which continues until lawfully ended by either party.

    • Talbots

      In the same circumstances (as above), although the deposit was protected late (by 20 months) can a section 21 notice be served once the prescribed information has been provided to the tenant?

  2. green123

    You should go to the property to see what the tenant has damaged. Then ask them to sign the specific form agreeing to deduct the damages from the deposit. Then you can issue S.21 for the tenant to leave in 2 months, and you have no liability at all to pay up to three months deposit. I should have done this to a tenant who wilfully damaged my property. I emailed him for a meeting to sign the form. He did not reply. With hindsight, I should have just gone there before he left for work in the morning, and he would have signed it without an appointment. He left in the end with a ruined Vispring mattress, a ruined window blind that had to be thrown away, a ruined solid wood desk that he had put hot mugs and plates on, and a wicker laundry basket that he had turned into shreds. Unfortunately, I did not know then about the deposit protection scheme, and I had to give him back the deposit before issuing the S.21 notice. He had sent me over 100 abusive emails, so what a relief he has gone.

    • guildy

      We generally don’t advise “agreed deductions” because the courts don’t seem to like it (despite it being in the legislation). That’s just feedback from members who have tried it. It’s made worse now by the new possession form which asks “when was the deposit returned” (it doesn’t ask when was it returned or agreed deductions made).

      But, legally, it is an option.

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