Section 21 Notice in HMO | Discuss

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Section 21 Notice in HMO
05/01/2012
10:21 am
emmagriffin1980@gmail.com
Cardiff
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04/01/2012
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I’m new to the site and was hoping to pick the brains of other
landlords out there.  I’ve been a
landlord for a few years letting to families and professionals, but last year I
purchased a property and converted to a HMO targeting student tenants, so I am
a bit “green” when it comes to this market and have already encountered a few
problems.

The property has 5 tenants on individual contracts and one
of the tenants seems to be doing a bit of stirring potentially all the tenants
may look to leave once the fixed term is up. 
I’m looking to take control of the situation and look to serve all 5
tenants a section 21 notice so the tenancy cannot move from a fixed term onto a
rolling monthly contract. 

 

However, there is a snag, the tenancies began in September,
but I didn’t register their deposits with the DPS straight away, in fact I only
registered them yesterday.  Now they are registered
can I serve the tenants a section 21 notice, or do I have to wait for the
deposit to be lodged with the DPS for 14 days before serving a section 21?

 

Any help would be greatly appreciated, thank you in advance,
Emma

05/01/2012
2:53 pm
Laura
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Hi Emma,

I used to work in a letting support center and dealt with these day in,day out. The old law meant you would have to wait 14 days but this has now been abolished and as long as the deposits are registered no matter the time scale then you can serve a section 21.

The only thing is that it depends on what kind of tenancy agreement you have.
If it is a standard AST agreement (assured short hold tenancy) then a section 21 is applicable but if it is a NHA agreement (non housing act) than a notice to quit must be issued.

I hope this helps?

Laura.

05/01/2012
3:26 pm
emmagriffin1980@gmail.com
Cardiff
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Laura,

 

I thought that was the case, thank you very much!

05/01/2012
4:45 pm
MARY LATHAM
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I’m looking to take control of the situation and look to serve all 5
tenants a section 21 notice so the tenancy cannot move from a fixed term onto a

rolling monthly contract.

 

Service of a S21 does not prevent the tenancy becoming a statutory periodic (rolling monthly contract) It simply means that you have given notice that at the end of the fixed term you want the property back.  A landlord cannot enforce the Section 21 should the tenants decide not to move out at the end of the fixed term and would need a court order to enforce it.  Even when a court order is issued if the tenants decide not to comply with the court order the landlord would need to ask the court to appoint a Bailiff to enforce the notice.  While all this is going on, and it can take a couple of months or more, the tenancy would in fact be a statutory periodic tenancy and all the terms of the original tenancy would continue to apply on both sides.

 

At this moment your late protection will not prevent your serving a Section 21 providing you have given each tenant, and anyone else who was inlvolved in providing the deposit, a copy of their protection certificate and the prescribed information provided by the scheme with which you have protected the deposit.  If you have not done this you have not complied with the law.  Since each tenant is on a separate AST you would need to protect each deposit individually and deal with each tenant individually.

From April new deposit protection rules apply and you should keep up to date with these and all other changes.  Letting an HMO is a very different ball game to single tenancy letting.  You can read about the new deposit protection rules here

http://www.property118.com/ind.....ail/21710/

 

However, there is a snag, the tenancies began in September,
but I didn’t register their deposits with the DPS straight away, in fact I only
registered them yesterday.  Now they are registered
can I serve the tenants a section 21 notice, or do I have to wait for the
deposit to be lodged with the DPS for 14 days before serving a section 21?

05/01/2012
4:52 pm
emmagriffin1980@gmail.com
Cardiff
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04/01/2012
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Mary,

 

Thank you very much for your thorough explanation, I really apprciate you taking your time to help me out.

 

You mentioned a copy of their protection certificate, where will I find this and should it be forwarded at the same time as serving the section 21 notice?

05/01/2012
5:07 pm
MARY LATHAM
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Guests

You are very welcome Emma.

 

You will get the protection certificate from the scheme with which you have protected the deposit.  You can download it and print copies.  You will need to keep one for your own file and one for the tenant.  If a third party provided the deposit you should print a copy for them too.  The information that must be given with this certificate can be found on the site too.  If you are using MyDeposits it is under the Landlord section I am not sure where it is on other sites but it will be there.  You need to print this too and when you give the certificate and info to the tenants get them to sign your copy to prove that you have given it to them.  If you think that they will not want to sign take an independant witness with you and get them to sign to say that they witnessed you giving the documents to each tenant.

Only when you have done all of the above can you serve a Section21 notice making sure that you have proof of service or a witness statement to prove that the notice was served.  If you are serving within the fixed term, so long as you ask for possession no sooner than two months later, minimum ( or two rent periods away) it does not have to fall on a particular date as it would if you were serving when the tenancy had become a periodic but you cannot gain possession sooner than the last day of the fixed term.

 

Just a tip when you are housing students it is always better to use one joint AST for the tenancy rather than individual ones if they come as a group - this makes life much easier when it comes to repairs/losses etc. in communal areas.

 

Good luck.

05/01/2012
5:45 pm
pierceandco.co.uk
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emmagriffin1980@gmail.com said:

Mary,

 

Thank you very much for your thorough explanation, I really apprciate you taking your time to help me out.

 

You mentioned a copy of their protection certificate, where will I find this and should it be forwarded at the same time as serving the section 21 notice?

Much as it pains me to say this, you need to listen to Mary and take her advice - She is one of the leading lights in all the matters you are discussing because she has been there and done it and probably printed the tee-shirt, I would say with a QR code but she is far too technically advanced for that - eh Mary? Wink

Mark A Reynolds

Pierce & Co Residential Letting Agents

http://www.pierceandco.co.uk

01296 20 1234

06/01/2012
10:35 am
emmagriffin1980@gmail.com
Cardiff
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Mary,

 

Once again, thank you very much for your help you are a real star!

14/06/2014
12:47 pm
Patricia A
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12/06/2012
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I have in the past,  taken deposits in installments

But after reading Mary's comments and the link,  i decided that i cannot take deposits in installments any more 

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