Question

DPC incorrect end date of contract

by | 4 Jan 2018

…24month fixed term contract…entered 6month end date by mistake – been periodic since month 6 – tenant left at month 23 (visa ending – but they wanted a 24month contract) – deposit dispute – TDS advised issue new certificate as they couldn’t make any changes to periodic protections and they would link the two certificates….
I did as they advised and sent addition DPC to tenants.

Will I be liable for 3x deposit fine?

Answer

1 Comment

  1. guildy

    There has been no court of record decision on this particular point to our knowledge.

    Section 213(3) provides:

    Where a landlord receives a tenancy deposit in connection with a shorthold tenancy, the initial requirements of an authorised scheme must be complied with by the landlord in relation to the deposit within the period of 30 days beginning with the date on which it is received.

    “Initial requirements” are defined as:

    (4) For the purposes of this section “the initial requirements” of an authorised scheme are such requirements imposed by the scheme as fall to be complied with by a landlord on receiving such a tenancy deposit.

    Arguably, you haven’t complied with the “initial requirements of the scheme” because the scheme asked for an end date and you didn’t put that correctly.

    However, the scheme don’t seem overly concerned and have offered advice which presumably corrects the initial requirements (although after 30 days).

    We believe it’s highly unlikely that a tenant would risk the costs involved in bringing a court claim for the penalty and in any event there is no guarantee they would be succesful.

    You would be wise getting the advice from the scheme in writing (via email will be sufficient) so it can be produced as evidence if needed.

    Also, the penalty is no longer 3 x deposit. It’s now between 1 and 3 times deposit at the discretion of the court. Therefore, in our view even if it were to go against you, you would be ordered to pay the lowest possible (1 x deposit).

    If a claim or the threat of a claim is made, come back to us again as there may have been some decision on the question by that time.

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