Landlord Changed Terms and Won't Refund Admin Fee

bunnymandd

I am a long time reader but first time poster (never had anything to say until now)

I recently tried to rent a flat and all was going well. I paid a deposit and admin fee for £250 along with the application form and all the required bank statements , references.

I am self employed and the landlord came back to me and said I was too much of a risk and wanted 6 months rent up front.

I was really annoyed because my business is doing well and the bank statements he took copies of show quite clearly I have savings of more than £40k and 6 months rent would be £6.5k

After I declined I asked for a refund and was told I could only get £100 back as the other £150 administration fee is non refundable.

I haven't signed anything, only filled in the application form and at no time was it written or mentioned that the administration fee would be non refundable.

I am really unhappy with this and feel I am entitled to a full refund since the landlord has changed the terms considerably. Does anyone have any advice to help me?

sp1987

It is fairly normal practice for places to ask for 6 months rent up front; my property did despite not ''advertising'' as such, especially for self funders or self employed people as you may often fail credit checks. I've paid two sets of 6 months up front. To be honest I much prefer to as I may not have any money in 3 months time and would like to know I have a roof over my head!

If he has not changed the actual rental price per month and you have the savings, is it worth losing the flat for considering this may well happen next time?

Fire_Fox

Don't pay six months up front unless you have had sight of the landlord's consent to lease or buy to let documentation. As long as everything is above board with the lender and you have all the right receipts your six months rent and tenancy are assured. I would be inclined to ask for my money to be held in an interest bearing client account tho!

bunnymandd

When I handed over the application form and paid the deposit and admin fee, there was absolutely no warning that I would fail a credit check because I ran my own business. I find it very difficult to understand how when I have no debts and earn over £5k a month, I can't afford a £550 a month flat. I can't understand any reason why I would be a risk

The main problem I have now is that I don't believe they should keep the £150 admin fee when they changed the agreement unfairly. I offered to meet in the middle and pay half and they came back with an offer of £30.

Does anyone think there is much chance I can fight this?

There is a lot of choice in the area I live, the flat I wanted to rent had been vacant for over 2 months and there are dozens of other places I can rent.

G_M

You paid a fee and asked them (or agreed) to do credit checks. This costs them both time and fees to the credit check company (Experian etc). It is impossible to foresee the outcome of the check (if it was there'd be no point in doing it).

Whether £150 is a 'fair' fee may be open to debate, but hard to contest legally.

They have offered an alternative (rent upfront), and another alternative you could explore is offering them a guarantor.

If you feel you are in a strong bargaining position (the flat's been empty a while and lots of competion from other LLs), ask them to refund the fee in return for you taking the flat (either with guarantor or upfront rent).

Otherwise you'll have to walk away and write the fee off.

Next time try applying to LL direct (small ads) or check agents fees carefully.

bunnymandd

Thanks GM I know your right, I will keep pushing in the hope of trying to get some more of my money back.

I have just been so annoyed by their crazy requirements that I felt I could at least get them back some how.

I totally forgot how bad letting agents can be. I get better service from my bank :P