Landlord mistake with deposit

[Babber101]

Hi all

I have made a mistake and failed to lodge my tenants deposit properly in the required time scale (30 days). I lodged it with the dps but much much later!

When the tenants left I approved the full release of their deposit from the dps. They got the full deposit back and have suffered no harm or loss.

I know I have broken the law and am liable to pay the penalty - it looks like they will take me to court so I will have to pay the court costs also.

Despite my mistake it's galling to think that I will have to pay the tenants thousands when they haven't suffered any harm.

I just wondered if any one had been through something similar, what your experience was and is there anything you can do to mitigate what might happen?

Btw - I know it's my own stupid fault and I am a bl@@@y idiot!!

[KrazyIvan]

Was there a reason it was not lodged?

And how much later? Like a week or so later or like when you realised they wanted the details of the scheme.

Realistically you don't really have grounds to complain. Best you can do is take your licks and learn from it. Hope it doesn't cost you too much.

[superlightr]

its upto 3 x the deposit value. not 3x

mitigate your loss by showing was registered albeit late and ask for low end of the 1 to 3x

perhaps make an offer to settle before court for 1.5x if they are awarded that or less then you can apply not to pay costs.

Edited by superlightr on Thursday 8th February 19:37

[So]

Babber101 said:

Hi all

I have made a mistake and failed to lodge my tenants deposit properly in the required time scale (30 days). I lodged it with the dps but much much later!

When the tenants left I approved the full release of their deposit from the dps. They got the full deposit back and have suffered no harm or loss.

I know I have broken the law and am liable to pay the penalty - it looks like they will take me to court so I will have to pay the court costs also.

Despite my mistake it's galling to think that I will have to pay the tenants thousands when they haven't suffered any harm.

I just wondered if any one had been through something similar, what your experience was and is there anything you can do to mitigate what might happen?

Btw - I know it's my own stupid fault and I am a bl@@@y idiot!!

I think there's more to this than you're letting on. Or it's not real. One or the other.

[LDN]

They got their full deposit back... so why are they taking you to court for more? Because they can?

Must be more to it...

[dazwalsh]

LDN said:

They got their full deposit back... so why are they taking you to court for more? Because they can?

Must be more to it...

Because they can, and because the OP didnt protect the deposit in time. One day late, one year late, makes no difference. Penalty is usually 3x deposit wether the original deposit returned or not. Thats the st thay we have to put up due to landlords abusing the deposit system before these new deposit protection rules were brought in. Think full redecoration costs deducted for a couple of blu tac marks, that sort of thing.

Its a costly mistake, lick your wounds OP and move on.

[hast2]

LDN said:

They got their full deposit back... so why are they taking you to court for more? Because they can?

Must be more to it...

THIS ^^^^^^^^^^^^^^^

So what happened - here's my guess...............

They broke something?
You said you would keep deposit
They wanted to contest it and asked for details of who was holding it.
Lots of arguing back and forth
They found out you hadn't registered deposit
You gave them back deposit to keep them quiet, hence your comment that they haven't suffered any harm.
It hasn't worked.

Only a guess How far out am I?

[anonymous-user]

I made a similar mistake 5 years ago. Took the deposit, "enjoyed it", then later learnt about the strict and harsh rules around protecting the deposits. I immediately gave the money back to the tenant (I don't think he knew about the rules either). My view was that as I no longer held a deposit I couldn't be fined 3 x deposit for not protecting it. I suspect that is not valid in law but at least it showed I had taken action to correct my misdemeanour.

OP - I don't see what your issue is, the tenant left, you paid the deposit back, isn't it ancient history now? UNLESS they are taking you to court?

[Dromedary66]

hast2 said:

THIS ^^^^^^^^^^^^^^^

So what happened - here's my guess...............

They broke something?
You said you would keep deposit
They wanted to contest it and asked for details of who was holding it.
Lots of arguing back and forth
They found out you hadn't registered deposit
You gave them back deposit to keep them quiet, hence your comment that they haven't suffered any harm.
It hasn't worked.

Only a guess How far out am I?

I expect you're spot on here!

[Babber101]

Thanks for all your replies guys

I am being completely honest here - not hiding anything.

On the very last day of the tenancy I released the full deposit back to them and they moved out.

I did not attempt to withhold any of the deposit back at all.

Because of the rules I can now be fined 1-3 times the deposit plus legal costs. They are threatening legal action.

Only got myself to blame - it's just going to be a bitter pill to swallow. They know the system, they have not suffered any harm at all but they know they can get some free money from me.

You live and learn I guess..

[superlightr]

Another reason to use a Letting Agent. Let them take the risk.

[anonymous-user]

Exactly how late did you lodge the deposit OP?

[So]

Babber101 said:

Thanks for all your replies guys

I am being completely honest here - not hiding anything.

On the very last day of the tenancy I released the full deposit back to them and they moved out.

I did not attempt to withhold any of the deposit back at all.

Because of the rules I can now be fined 1-3 times the deposit plus legal costs. They are threatening legal action.

Only got myself to blame - it's just going to be a bitter pill to swallow. They know the system, they have not suffered any harm at all but they know they can get some free money from me.

You live and learn I guess..

At the risk of appearing rude - I don't think you're a landlord, I don't think there are any tenants and there was no deposit.

Instead, I think you're trying to drum up business for tenancy deposit claims and presumably affiliated to the outfit with the sponsored link at the top of Google.

[LDN]

So said:

Babber101 said:

Thanks for all your replies guys

I am being completely honest here - not hiding anything.

On the very last day of the tenancy I released the full deposit back to them and they moved out.

I did not attempt to withhold any of the deposit back at all.

Because of the rules I can now be fined 1-3 times the deposit plus legal costs. They are threatening legal action.

Only got myself to blame - it's just going to be a bitter pill to swallow. They know the system, they have not suffered any harm at all but they know they can get some free money from me.

You live and learn I guess..

At the risk of appearing rude - I don't think you're a landlord, I don't think there are any tenants and there was no deposit.

Instead, I think you're trying to drum up business for tenancy deposit claims and presumably affiliated to the outfit with the sponsored link at the top of Google.

Which link is that??

[So]

LDN said:

So said:

Babber101 said:

Thanks for all your replies guys

I am being completely honest here - not hiding anything.

On the very last day of the tenancy I released the full deposit back to them and they moved out.

I did not attempt to withhold any of the deposit back at all.

Because of the rules I can now be fined 1-3 times the deposit plus legal costs. They are threatening legal action.

Only got myself to blame - it's just going to be a bitter pill to swallow. They know the system, they have not suffered any harm at all but they know they can get some free money from me.

You live and learn I guess..

At the risk of appearing rude - I don't think you're a landlord, I don't think there are any tenants and there was no deposit.

Instead, I think you're trying to drum up business for tenancy deposit claims and presumably affiliated to the outfit with the sponsored link at the top of Google.

Which link is that??

Google: "landlord didn't protect deposit" and I am guessing it's the top one.

The OP has posted the exact same post on Landlordzone under a different name, having joined specifically for that purpose it seems. The wording is quite carefully framed to set out the criteria for a claim. The owner of the domain on the top Google link shares a name with a chap quite active in financial services and property type stuff. I think lead generation for deposit claims might just be his latest venture.

[LDN]

So said:

Google: "landlord didn't protect deposit" and I am guessing it's the top one.

The OP has posted the exact same post on Landlordzone under a different name, having joined specifically for that purpose it seems. The wording is quite carefully framed to set out the criteria for a claim. The owner of the domain on the top Google link shares a name with a chap quite active in financial services and property type stuff. I think lead generation for deposit claims might just be his latest venture.

You are Hercule Poirot in disguise!

[Mortgage_tom]

Hahaaaa busted