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    • Heidibag
    • By Heidibag 19th Apr 17, 6:38 PM
    • 19Posts
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    Heidibag
    Holding deposit and estate agents
    • #1
    • 19th Apr 17, 6:38 PM
    Holding deposit and estate agents 19th Apr 17 at 6:38 PM
    Can anyone advise me on the following:

    I put my property up for rent with an estate agent. They found someone and advised that the person wanted to move in on 1st may. At the time, it was about four weeks until that date. The agent told me that I had to stop advertising the property with other agencies as the tenant had paid a £500 holding deposit. I have been notified today that the tenant failed the credit check and the agency will re- market the property. I asked what happens to the holding fee as I have a mortgage payment due in a weeks time. The agent told me it went towards the credit checks and admin fees. I argued my case with the agent saying that i had lost three weeks of time where I could have found someone but was told to take it off the market and now I am out of pocket. The agent basically wasn't interested. Can anyone advise where I stand with this? I have asked for proof of the credit check and why it took so long to carry out.
Page 1
    • Cakeguts
    • By Cakeguts 19th Apr 17, 8:23 PM
    • 2,515 Posts
    • 3,353 Thanks
    Cakeguts
    • #2
    • 19th Apr 17, 8:23 PM
    • #2
    • 19th Apr 17, 8:23 PM
    Yes my advice would be to sell the property. If you can't afford to pay the mortgage without getting rent you can't afford to be a landlord. As a landlord you have got to be able to pay the mortgage if the tenant stops paying you rent. You could be without any rent for 6 months if the tenant stops paying but you will still have to continue to pay the mortgage and you would still have to pay for any repairs. If you do not have any spare money to pay the mortgage without using all of the rent then becoming a landlord is not a good idea.
    • Heidibag
    • By Heidibag 19th Apr 17, 9:21 PM
    • 19 Posts
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    Heidibag
    • #3
    • 19th Apr 17, 9:21 PM
    • #3
    • 19th Apr 17, 9:21 PM
    Thank you for response however, my query is where do I stand with the agent and how they've acted, not about paying the mortgage or selling the property.
    • G_M
    • By G_M 19th Apr 17, 9:53 PM
    • 39,699 Posts
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    G_M
    • #4
    • 19th Apr 17, 9:53 PM
    • #4
    • 19th Apr 17, 9:53 PM
    Tell the agent you will no longer be using their services.

    Speak to your other agents, and clarify the process they will be using on your behalf, including whether they will be collecting a holding deposit from applicants on your behalf, (ie it's yours not theirs) and whether that deposit is refundable to the tenant if
    * the tenancy comes to fruition
    * you change your mind
    * the tenant changes their mind
    * the tenant fails the vetting process

    Check the status of any other moneys they will be taking from the applicant eg admin fee, contract fee, vetting fee etc.

    Then ask why they are charging both you AND the applicant for some of those tasks......

    Get that confirmed in writing, along with all other aspects of your relationship with the agents.

    See also:

    * Letting agents: how should a landlord select or sack?

    and

    * New landlords: advice, information & links
    Last edited by G_M; 19-04-2017 at 9:57 PM.
    • Heidibag
    • By Heidibag 19th Apr 17, 10:05 PM
    • 19 Posts
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    Heidibag
    • #5
    • 19th Apr 17, 10:05 PM
    • #5
    • 19th Apr 17, 10:05 PM
    Many thanks for your advice. I shall be contacting the agent tomorrow. I have spoken with other agencies and they have advised that the agent was in the wrong and should inform me of the reasons behind the credit check failure and even ask if I'm willing to take a guarantor.
    • G_M
    • By G_M 19th Apr 17, 10:24 PM
    • 39,699 Posts
    • 45,211 Thanks
    G_M
    • #6
    • 19th Apr 17, 10:24 PM
    • #6
    • 19th Apr 17, 10:24 PM
    .....they have advised that the agent ..... should inform me of the reasons behind the credit check failure and even ask if I'm willing to take a guarantor.
    Originally posted by Heidibag
    If that is the basis on which you employed the agent, yes.

    If you delegated selection of tenants to the agent, no.

    What exactly DID you agree when you instructed the agent?

    The trouble is that too many (often but not only) amateur landlords simply don't understand their contractual relationship with their agents.
    • justme111
    • By justme111 19th Apr 17, 10:35 PM
    • 2,623 Posts
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    justme111
    • #7
    • 19th Apr 17, 10:35 PM
    • #7
    • 19th Apr 17, 10:35 PM
    Someone must regulate estate agencies, may be complaining to that regulatory body or a threat of complaint in your letter to that agent would work ?
    • Heidibag
    • By Heidibag 19th Apr 17, 10:36 PM
    • 19 Posts
    • 0 Thanks
    Heidibag
    • #8
    • 19th Apr 17, 10:36 PM
    • #8
    • 19th Apr 17, 10:36 PM
    The agent agreed to find a tenant. They found one who then advised that her divorce was not complete and wanted to change the move in date. I advised that the property would go back on the market, which it did. The same agent found another tenant, agreed a move in date. Didn't mention admin fees that I would have to pay so they waivered them. Agreed an inventory check and commission fees. Was advised that the tenant had placed a holding fee. I informed the agent that because I was messed about previously I would not take the property off the market. I was told by the agency that as the tenant had paid a holding fee, I needed to remove it from the market, so I did. So one week prior to moving in day and suddenly I am informed that the tenant failed the credit checks and wouldn't be moving in. I queried the holding and was told that it covered the agency's fees.
    • G_M
    • By G_M 19th Apr 17, 10:39 PM
    • 39,699 Posts
    • 45,211 Thanks
    G_M
    • #9
    • 19th Apr 17, 10:39 PM
    • #9
    • 19th Apr 17, 10:39 PM
    Someone must regulate estate agencies, may be complaining to that regulatory body or a threat of complaint in your letter to that agent would work ?
    Originally posted by justme111
    The agency must belong to one of

    * The Property Ombudsman
    * Ombudsman Services Property
    * Property Redress Scheme
    • justme111
    • By justme111 20th Apr 17, 8:01 AM
    • 2,623 Posts
    • 2,523 Thanks
    justme111
    The agent agreed to find a tenant. They found one who then advised that her divorce was not complete and wanted to change the move in date. I advised that the property would go back on the market, which it did. The same agent found another tenant, agreed a move in date. Didn't mention admin fees that I would have to pay so they waivered them. Agreed an inventory check and commission fees. Was advised that the tenant had placed a holding fee. I informed the agent that because I was messed about previously I would not take the property off the market. I was told by the agency that as the tenant had paid a holding fee, I needed to remove it from the market, so I did. So one week prior to moving in day and suddenly I am informed that the tenant failed the credit checks and wouldn't be moving in. I queried the holding and was told that it covered the agency's fees.
    Originally posted by Heidibag
    It all sounds so unprofessional. Seems to me what fee corresponds for what should been written somewhere, not just made up as one goes alone. (I am not in a btl myself, just interested in the topic so may not be right)
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