collette Posted February 24, 2007 Report Share Posted February 24, 2007 Hello, Can anyone tell me if it is ok to ask for a holding fee (£100) to be returned on completion of credit checks and receipt of deposit and one month's rent? I would like to do this so I am sure future tenants are serious about securing the tenancy and wont let me down at the last minute by changing their minds. I am also unsure as to whether I can request payment of the deposit and one month's rent before the starting date on the tenancy agreement - one, two or even three weeks before. Many thanks. Link to comment Share on other sites More sharing options...
GPEL Posted February 24, 2007 Report Share Posted February 24, 2007 You can do this but put it in writing so that there's no misunderstanding and both parties should sign. Say it is a holding deposit to secure the property for them; deductable from total rent/deposit and non-refundable if they withdraw. Also, you can ask for rent/deposit in advance of the start date but don't expect it. After all, the holding deposit is your test of their commitment. If the tenancy doesn't start, they would be entitled to request the rent/deposit to be refunded less the holding deposit. Bottom line is that if they withdraw early you can only claim back costs, which doesn't include your mortgage payments, loss of rent for the period held etc. Some have tried this but unlikely to stand court scrutiny if it went that far. Link to comment Share on other sites More sharing options...
Trenners Posted February 24, 2007 Report Share Posted February 24, 2007 Hi Collette, I agree with GPEL - it is fair to ask for a holding DEPOSIT - I would not call it a holding FEE. Create an agreement (that everyone signs) that states that the holding DEPOSIT will be used as a Security Deposit as long as the tenancy commences by an agreed date. If the tenant withdraws before the agreed date then you are allowed to deduct COSTS (eg: re-advertising, credit referencing) but not loss of rent etc. If the landlord withdraws before the agreed date then the ENTIRE holding deposit is returned without deduction (eg: if the tenant was to fail the credit check because I would guess you wouldn't want them as tenants anyway). If you need a sample agreement - let me know ...... I hope that helps .... Mark Link to comment Share on other sites More sharing options...
kara99 Posted February 28, 2007 Report Share Posted February 28, 2007 Hi Collette, I agree with GPEL - it is fair to ask for a holding DEPOSIT - I would not call it a holding FEE. Create an agreement (that everyone signs) that states that the holding DEPOSIT will be used as a Security Deposit as long as the tenancy commences by an agreed date. If the tenant withdraws before the agreed date then you are allowed to deduct COSTS (eg: re-advertising, credit referencing) but not loss of rent etc. If the landlord withdraws before the agreed date then the ENTIRE holding deposit is returned without deduction (eg: if the tenant was to fail the credit check because I would guess you wouldn't want them as tenants anyway). If you need a sample agreement - let me know ...... I hope that helps .... Mark could you supply an aggreement to veiw please. Thanks Link to comment Share on other sites More sharing options...
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