Tenant refused rent increase and now arguing deposit issue?

Tenant refused rent increase and now arguing deposit issue?

by Readers Question

Guest Author

0:02 AM, 26th June 2024, About 6 days ago 14

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I had a new tenant on Universal Credit in September 2000. He accepted a rent increase of £200 in September 2022, which was not signed. He remained on the rollover periodic AST and paid this increased rent for one year.

Due to the current economic and market situation, the market rent value has increased by around £600-800 in the area. I suggested he consider increasing the rent by £200 in September 2023. He refused to accept my opinion and became arrogant in his behaviour toward me on the phone calls. I sent him a Section 21 Notice in October 2023, but he then started paying rent at the initial amount for the year 2000.

A court hearing came up in April 2024 for just 10 minutes due to a tenant’s objection to the estate agent for not receiving the gas safe certificate and how to rent to guide in the year 2000. The estate agent sent me an email stating that he provided both documents to the tenant in hand before he moved in.

The tenant’s second objection was that he paid deposit money, which was put on rent terms of 2 rent advances before moving in, followed by rent every month. The word deposit is not mentioned in the AST. This arrangement was explained to the tenant by the estate agent and me before signing the AST. I am still waiting for the court hearing and would appreciate everyone’s help with the following questions:

1. From July, a new Labour government will abolish Section 21 from day one. Would it apply to my case or not?

2. How detrimental is the tenant’s deposit issue to me? I returned his one advance rent before raising the Section 21 Notice to his bank account, and he accepted it.

3. Does the Estate agent’s witness statement carry any legal weight in my favour at the hearing?

Many Thanks

Ali


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Comments

David Houghton

10:49 AM, 26th June 2024, About 5 days ago

Yes, your estate agents witness statement carries weight, if signed correctly. Even more so if he is at the hearing. Deposit is paid back so not an issue. Document it. New labour. It will take time to come into force.

DPT

16:10 PM, 26th June 2024, About 5 days ago

Firstly, even though he didn't sign the 2022 replacement tenancy agreement, it may still be in force unless you made it subject to contract which would require signature.

A judge may or may not accept an agents written statement about supplying the prescribed documents, but the agent should have kept records of this.

A second month's rent taken but not used as rent fulfills the definition of a deposit. This arrangement puts you in breach of both the Tenant Fees Act and the deposit legislation in the 2004 Housing Act. Your s21 notice is invalid and the tenant could seek a penalty against you of up to 3x the value of that extra months rent.

Jonathan Willis

18:06 PM, 26th June 2024, About 5 days ago

Reply to the comment left by DPT at 26/06/2024 - 16:10
But they paid the deposit (extra rent) back before issueing the s21 , so the notice is still valid on that count

The tenant is however free to lodge an unprotected deposit claim, but they'll only get back 1x compensation for "no or late production", so £200 if that was the deposit amount, although it will cost the landlord an additional £300 or so in court fees if they proceed down that route.

David Houghton

18:29 PM, 26th June 2024, About 5 days ago

Reply to the comment left by Jonathan Willis at 26/06/2024 - 18:06
I'm such circumstances the landlord should be able to make a counterclaim for the rent arrears. (Obviously claiming his court fees back will be difficult but the tenant won't get anything)

Deb

19:35 PM, 26th June 2024, About 5 days ago

This was sent to my tenant after section 21 notice served…….
Thank you
I have requested that you be assigned an officer who will go through the next stage with you.
Please be aware that due to a back log of cases this may take a little while but you will be allocated an officer.
I the meantime, you are advised that you have a legal right to occupy your property. Your landlord will have to go through the proper legal process is he wants you to vacate he property.
He must issues you with Section 21 notice as he has done, a Possession Order and a Bailiffs Warrant. This process can take some time.
Therefore, you are advised NOT to vacate your property until your landlord has issued you with all 3 notices, the last one being the bailiffs warrant. If you do vacate the property without finding alternative suitable and reasonable long term accommodation for yourself and your family you will be making yourself homeless intentionally.
Kind regards
Debbie
Triage Team

IS THIS LEGAL?

Nicola Bass

6:19 AM, 27th June 2024, About 5 days ago

How do you expect a tenant on UC to pay two rent increases of £200 each in two years when housing benefit payments only increased in April 2024. What was the percentage increase each time? It must have been huge. No wonder landlords have a bad reputation.
If you want market value rent don't rent to people on UC.

anthony altman

8:13 AM, 27th June 2024, About 5 days ago

Unfortunately landlords have no rights , you legally have to take tenants on UC you have no choice , get out now buy in Europe where landlords have human rights unlike the UK

David Houghton

8:46 AM, 27th June 2024, About 5 days ago

Reply to the comment left by anthony altman at 27/06/2024 - 08:13
No you don't have to take tenants on UC. You can't have a blanket ban on UC tenants but you can reject them on a case by case basis. I.e. you have to show them the house, then check their income then say no.

David Houghton

8:48 AM, 27th June 2024, About 5 days ago

Reply to the comment left by Deb at 26/06/2024 - 19:35
Yes it's legal. You have to follow the process

DPT

16:20 PM, 27th June 2024, About 4 days ago

Reply to the comment left by Jonathan Willis at 26/06/2024 - 18:06No, the s21 is invalid because of the breach of both acts I mentioned. Until you refund the deposit to the tenant, you will not be able to serve a valid s21 notice.

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