Holding deposit on apartment

moneysavingj

Hope someone can advise what to do here, I'd appreciate any input..

I applied for an apartment on the 22nd last month, paid a holding deposit+admin fee over the phone (£1315+£95) after they insisted it would be quicker than coming down to the office, after which I visited the letting agent office to sign the holding deposit agreement.

After back and forth phone calls, emails and visits to the office providing income details, giving them full bank statements for the past 3 months I'm still without an apartment - they are waiting on a reference from my previous managing agent. My holding deposit is valid for a month (expires in 2 days), after which I have to pay another £1315 should I still want the apartment. The current situation is that they can't get a hold of my previous managing agent, and so are telling me I either pay another £1315 or lose my deposit altogether if they don't get the reference. I've offered to supply a guarantor to avoid this, but their excuse is that it will take longer than 2 days for a guarantor reference to go through.

What are my options here? £1315 is a lot of money to lose over this, and it seems like they're doing their best to keep my deposit and not let me move in (it's only a 3 month contract for them).

Any help would be great. Thanks

Fire_Fox

What are the terms and conditions under which the holding deposit was taken? Have you had a copy of this plus a receipt?

moneysavingj

Yes, I've just got the copy of the t&c which I signed after paying over the phone (no receipt). It states the following:

"Should the applicant withdraw the application of fail their referencing, which is at the landlord's discretion and in this event be unable to provide a guarantor suitable to the landlord, the deposit will not be returned."

When applying at the start I even offered to pay the full rent upfront, to which they replied it wouldn't make a difference to the application. Now they're saying paying upfront would remove the need for a reference, but I no longer have the funds to hand so that option is gone.

moneysavingj

So what I'm really asking is- should I have to pay another £1350 after providing a guarantor? I know there's probably no chance of getting the initial deposit back. They seem to be stalling so the 1 month runs out, giving them a chance to take more money from me.

sooz

Have you tried chasing the previous managing agent? Could the previous LL not give you a personal reference if his LA are that inept?

tbs624

Talk to two specific people at the local Council -

(a) Trading Standards Officer
(b) Private Sector Rentals Team - the tenancy relations officer

Those who set themselves up in business as LAs currently need no qualifications, training, vetting , expertise and so on. In the unlikely event that this LA is signed up to any voluntary code of conduct via NAEA, NALs, ARLA you can raise a complaint there.

That's a huge sum of money to be paid out before you get to sign the tenancy agreement: you're being royally ripped off IMO.

<sebb>

moneysavingj wrote: »

"Should the applicant withdraw the application of fail their referencing, which is at the landlord's discretion and in this event be unable to provide a guarantor suitable to the landlord, the deposit will not be returned."

I find this absolutely shocking! The landlord can basically turn round and say your references are not valid then keep the deposit? £1315 is an extremely large holding deposit in my opinion. How much is the rent?

I'm sorry, I dont know what your rights are but this doesnt seem right to me. If they threaten to withold it, then I would threaten them with legal action.

Ask for a receipt for the original deposit too.

moneysavingj

tbs624 wrote: »

Talk to two specific people at the local Council -

(a) Trading Standards Officer
(b) Private Sector Rentals Team - the tenancy relations officer

Those who set themselves up in business as LAs currently need no qualifications, training, vetting , expertise and so on. In the unlikely event that this LA is signed up to any voluntary code of conduct via NAEA, NALs, ARLA you can raise a complaint there.

That's a huge sum of money to be paid out before you get to sign the tenancy agreement: you're being royally ripped off IMO.

Thanks, much appreciated!

<sebb> wrote: »

I find this absolutely shocking! The landlord can basically turn round and say your references are not valid then keep the deposit? £1315 is an extremely large holding deposit in my opinion. How much is the rent?

I'm sorry, I dont know what your rights are but this doesnt seem right to me. If they threaten to withold it, then I would threaten them with legal action.

Ask for a receipt for the original deposit too.

The rent is £950pcm. It seems to me like they're messing me about because I only took out a 3 month contract. I'll post back with the result.

tbs624

<sebb> wrote: »

I find this absolutely shocking! The landlord can basically turn round and say your references are not valid then keep the deposit? £1315 is an extremely large holding deposit in my opinion.

No, of course they can't - even if its the T who decides to withdraw any retention of fees by the LA has to be proportionate to the work involved. Just because an LA has a particular clause drafted into their Ts &Cs, or into their tenancy agreements, does not mean it will stand.

Here's what the OFT says on the issue:

"Where the tenancy does not go ahead because the landlord or agent decides not to proceed, whether this is on the basis of a failed reference check or not, then we take the view that they are not entitled to charge the tenant for the costs they have incurred because it is the landlord/agent who has breached the agreement, not the tenant. If a tenant puts down a holding deposit, provides accurate information about themselves and does not withdraw from the agreement, we see no justification for the landlord/agent seeking to keep any of the tenant's monies on the basis that the landlord/agent decides not to proceed with the tenancy.”

Hence my previous suggestion of making use of the local Council's relevant Officers.

The general advice would be not to use any LA who demands "holding deposits". They favour one party over the other, muddy the waters & are not necessary.

bristol_pilot

It is very likely a scam and should be reported to Trading Standards. They never had any intention of renting you the apartment. 'Holding deposits' are dodgy at the best of times. Most certainly don't hand over any more money!

tbs624

moneysavingj wrote: »

Thanks, much appreciated!


The rent is £950pcm. It seems to me like they're messing me about because I only took out a 3 month contract. I'll post back with the result.

They will be wary because although you can have an AST for whatever min period you like, a T may in fact stay put until a full 6 months has elapsed.