Had to pay a security deposit - Advice needed

gazfocus

Ok, as some of you know, I am going through the process of applying for a house to let. When I looked around the house, the LA let slip that the rent will be dropped 2 weeks after the date I viewed if it was still available and as parts of the house need decorating, I thought I'd cease the opportunity and offer to decorate myself (to suit my tastes) and offered a lower monthly rent because of it.

Today (a week later), the LA phoned me to say that the LL had finally contacted them and had agreed the lower rent, but they said that due to the amount of interest the LL wanted me to pay a security deposit so they can guarantee I won't back out. I had already given the application forms and paperwork to the LA and that has now been processed.

I explained to the LA that I hadn't got spare cash lying around for another deposit so the only thing I could do is pay the actual deposit which I would have to pay anyway, which they agreed to and I paid in cash today.

However, because they only processed my application today, I still don't know if I've got the house (and have now paid the LA £645 including the £95 admin fee) so what happens if they reject my application? Can I request the total sum back or just the deposit? Is it just me or is it odd that I've had to pay a deposit even though I don't know if I've got the house?

clutton_2

i certainly never ask prospective tenants for the full deposit until we sign the tenancy agreement. did you get a receipt ? did u pay the deposit by cheque ? i might be tempted to cancel the cheque myself until the references/credit checks are done - there was a scam doing the rounds 3 years ago exactly as you have described - and no one got their money back - nor did anyone get a property

this may not be the case with you - but it does sound quite odd

Beardmidget

It would be normal to pay a holding deposit before going and signing the contract/ paying deposit etc... but not after! What is there to secure if you're already, effectively, the tenant in waiting?

gazfocus

I paid cash (at the LA's request). It is quite an established Letting Agency and they said once the credit checks are sorted and everything else, I will get a certificate from the Rental Deposit Scheme or something. The receipt says the amount I paid, that I paid by cash, and they've put the description as Deposit for (the address of the house I've applied for).

gazfocus

Beardmidget wrote: »

It would be normal to pay a holding deposit before going and signing the contract/ paying deposit etc... but not after! What is there to secure if you're already, effectively, the tenant in waiting?

I haven't signed the tenancy yet because I'm still waiting for the credit checks to be processed.

Beardmidget

OK fair enough- I think I'd tell them to take a running jump myself, but then I'm rash.

If they were that bothered, they could consider a proportion of the deposit you have already paid as security, until such time as the contract is signed and the deposit converts into a standard security deposit (which is held in one of these new schemes). After all, the money you have paid isn't currently a security deposit on a flat- it is a sum in the agent's bank account which will become that security deposit when you have proper legal possession of the flat.