By Paying the withholding deposit(sometimes referred to as reservation fee) does not mean your tenancy has been secured. It will however reserve it for you until the referencing are carried out for a final result.
Always ensure you have all queries dealt with before you pay the withholding deposit.
The only payments you will be asked for before moving in is:
the rent,a tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above a refundable holding deposit (to reserve a property) capped at no more than one week’s rent. (note if you choose Alternative deposit scheme you will be asked to pay (usually 1 weeks rent)this directly to the alternative deposit company)
However, it is worth noting there is nothing in the Tenant Fees Act preventing us seeking costs for damages caused by the tenant through the courts or via your chosen deposit scheme.
Do not pay anyone any cash whats so ever only bank transactions are accepted to the bank account number here. it is recommended to call the office to ensure you have the right bank account details before you make any payments.
The property will be removed from the letting market in favour of this prospective tenant and
held for a maximum period of 7 days. (however the deadline will be 15 days to enter into a tenancy agreement)
Where the prospective tenant fails to progress the tenancy, or gives false or misleading
information, an appropriate amount for the landlord’s justifiable costs / losses will be deducted from the holding deposit.
Where the landlord fails to progress the tenancy for reasons other than those stated above the holding deposit will be returned in full and appropriate compensation for any losses paid to the tenant.
The holding deposit will be credited to the damage deposit and/or rent on completion of the letting agreement.
FAQ’S
Do not send any monies if you have not viewed the property and are happy to move in with terms discussed already with you for example the rent, deposit, term etc.
Only pay a holding deposit if you’re serious about taking on the tenancy. The landlord or agent might keep the money if you decide not to go ahead.
What is a holding deposit- sometimes referred to as reservation fee?
A holding deposit is a payment to a landlord or agent to reserve a property.
How much you can be charged?
a holding deposit can’t be more than 1 week’s rent.
What happens when you pay?
we stop/pause taking another deposit until the results of the referencing application and a decision has been reached on your application
You have 15 days from when you pay a holding deposit to enter into a tenancy agreement. This is called the deadline for agreement. You can agree a different deadline with the landlord or agent in writing. ( see things to prepare/consider in the next section.)
If the referencing is successful and you enter into a tenancy agreement, :
• return your holding deposit within 7 days of agreeing the contract
• put it towards a tenancy deposit or the first rent payment with your permission
You could lose your holding deposit if you decide not to go ahead, or don’t take reasonable steps to agree a tenancy by the deadline.
Misleading statements
The landlord or agent can keep the money if you have misled them about something that affects whether they offer you a tenancy.
For example, if you said your income was a lot higher than it is.
How to get your holding deposit back
Write to the landlord or agent if they keep a holding deposit when they shouldn’t do. For example Landlord decided not to rent the property for their own personal reasons, Ask for your money back in full.
You can also complain to:
• trading standards at your council
• a letting agent redress scheme if the agent is a member
Trading standards can help you apply to a tribunal to get your money back and can fine the landlord or agent.
Find out more on GOV.UK about applying to a tribunal.
A redress scheme can investigate your complaint and tell the agent to apologise or compensate you.
As The referencing will ask for documents from you and your guarantor we recommend you have those to hand.
Usually documents requested are : right to rent checks. Employment/income proof, ie bank statements /payslips, ID Landlord reference, employment reference, pet reference so its a good idea to ensure you have those details to hand like your landlords email and employer email etc.
As you will appreciate Failure to provide those details in a timely manner could mean the deadline is missed and the house offered to someone else and in some cases you are not refunded your reservation fee.
