damonsutton Posted November 18, 2008 Report Share Posted November 18, 2008 I signed up with a letting agent (first time landlord). They got me a tenant to move in 1 months time. The day came and the letting agent told me the tenant had pulled out. After talking to people they told me about a non-refundable holding deposit which is best practice. The letting agent tells me there was no deposit or compensation for me. There is nothing in the letting agents terms and conditions about a holding deposit. I now am going to make sure I get one. Have I a case for compensation? Many thanks, DS Link to comment Share on other sites More sharing options...
Selkirk Posted November 18, 2008 Report Share Posted November 18, 2008 Hi As I understand it the holding deposit is paid to the agent and covers their work, ie credit checks etc. It's very frustrating but I don't think you'll get anything, use a different agent. cheers Selkirk Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 20, 2008 Report Share Posted November 20, 2008 Let it yourself ....www.gumtree.com Finding a (good)LA that is worth the money they charge is lot harder than finding a good tenant.Period. The Rodent Link to comment Share on other sites More sharing options...
simonbaldry Posted November 22, 2008 Report Share Posted November 22, 2008 Hi I own a letting agents and suggest following to ensure everything runs smoothly. When the agent contacts you to say they have taken an admin fee, ask them how long its will take to gets the refs together (insist on a quick response), if a tenant is serious they will do their utmost to provide the info required. Ask to see a copy of the refs, photocopy of id, a credit search takes 5mins, most employers respond within 24hours and landlords can be quite helpfull( however they are not always pleased to see the back of a good tenant and only to happy to hasten the departure of bad one) Ask the letting agent to get the tenants to sign a contract at the first opportunity.Traditionaly agents have waited until the move in day for the contract to be signed. It is amazing how many tenants will change their minds about a property if they are given time to think about it!. The contract should of course include a clause the tenants can not move in without paying the first monts rent and deposit, also instruct the agent not to hand over keys until money is paid, and standing order forms signed. Link to comment Share on other sites More sharing options...
Pauly Posted November 22, 2008 Report Share Posted November 22, 2008 Any good letting agent should take a non-returnable holding deposit, this ensures the prospective tenant isn't wasting your time, and doesn't leave you with unecessary and expensive void periods. I would certainly ask to see references, and meet prospective tenant in person if possible, as letting agent's may not be thorough in checking a prospective tenant out and they may be more eager to get their commission off you. I manage my property myself, i'm more in control and it saves me a bundle, and afterall, a letting agent won't be losing sleep if your property lies empty or has a nightmare tenant in it. Link to comment Share on other sites More sharing options...
simonbaldry Posted November 22, 2008 Report Share Posted November 22, 2008 Any good letting agent should take a non-returnable holding deposit, this ensures the prospective tenant isn't wasting your time, and doesn't leave you with unecessary and expensive void periods. I would certainly ask to see references, and meet prospective tenant in person if possible, as letting agent's may not be thorough in checking a prospective tenant out and they may be more eager to get their commission off you. I manage my property myself, i'm more in control and it saves me a bundle, and afterall, a letting agent won't be losing sleep if your property lies empty or has a nightmare tenant in it. Link to comment Share on other sites More sharing options...
simonbaldry Posted November 22, 2008 Report Share Posted November 22, 2008 Sorry i am not aware of a non refundable holding deposit being valid, as without a signed contract you are leaglly obliged to give it back. Yes we do loose sleep over landlords empty properties and nightmare tenants. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 23, 2008 Report Share Posted November 23, 2008 Sorry i am not aware of a non refundable holding deposit being valid, as without a signed contract you are leaglly obliged to give it back. Take an admin/referencing fee (=to deposit +costs in value) It only becomes a "deposit" at the time of signing ast. and as such is non returnable. The Rodent Link to comment Share on other sites More sharing options...
simonbaldry Posted November 23, 2008 Report Share Posted November 23, 2008 Yes take an admin fee, however insisting that a tenant put down a large sum say equivalent to a months rent can be prohibative to finding a tenant. Also it would be seen as unfair trading practise to withhold this money without a signed contract. I can prove all this with ref to recent court cases, but no one is paying me for my wise words here. Link to comment Share on other sites More sharing options...
Preston Posted November 23, 2008 Report Share Posted November 23, 2008 Hi It is perfectly legal to take a non returnable holding deposit. The key is that any deductions from the deposit should represent a reasonable estimate of the actual costs incurred or losses made as a result of the deposit payer failing to take up the tenancy (if that was the agreed reason for taking the deposit). As with any contract, its very important to record the arrangements for the deposit in writing, to avoid confusion and arguments at a later date. There are various documents on the web that will do the job; the one I use is produced by the RLA. Incidentally, I've always thought that one of the good things about this site is that you can give and receive advice without charge. I'm always a bit suspicious of people who hint that they could tell me so much more if only I would part with a little cash. I'm much more impressed by people who are prepared to speak openly and fullly and sell themselves on the basis of their professionalism rather than their secrets. Preston Link to comment Share on other sites More sharing options...
simonbaldry Posted November 23, 2008 Report Share Posted November 23, 2008 I want to make clear I am not offering services of any kind or even hinting at offering them. In my experience a non refundable holding deposit is invalid and will be thrown out by any judge who comes across it. A collegue of mine recently lost a case when a tenant succesfully claimed an admin fee back, by claiming that he did not understand what he signing ( in regards to the breakdown of costs and ref fees). Also just to bang on my original point was it is better to have the tenant sign the AST, which is a legally binding document as soon as possible rather than waiting until the move in day. Link to comment Share on other sites More sharing options...
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