Rental question

andystephens

Hi

my friend has a cottage which is up for rent. The agents have just taken a holding deposit but not done the references yet. My friend has since decided to let it privately to a friend, but wants to know what will happen with the agents and the holding deposit for the other people

thanks

Fire_Fox

Why not read the contract signed between landlord and agent and/ or ask the agents? Only your friend knows what he/ she has signed!

pyueck

andystephens wrote: »

Hi

my friend has a cottage which is up for rent. The agents have just taken a holding deposit but not done the references yet. My friend has since decided to let it privately to a friend, but wants to know what will happen with the agents and the holding deposit for the other people

thanks

Well the agents will definately have to refund the reference/holding deposit to the tenant. The tenant could also theoretically sue the landlord for breach of contract, and for any loss the person has occurred as a result. Unlikely though. The tenant may also try and sue the agent for the same amount as they paid for the holding deposit, based on the unfair terms in consumer contracts regulations. This regulation basically means that terms for consumers should not be biased to one party at the detriment of the consumer. The person could argue any term which means the tenant loses this fee if they pull out, but the agent doesn't need to pay the same amount if the landlord pulls out is unfair to the detriment of the consumer.

The area is a little confusing, as a lot depends on what the person actually paid the money for. Most agents call it a reference or agency fee, but sell it to the tenant on the basis that the property will be taken off the market (i.e. held for the tenant) if this fee is paid. It would be up to the judge to decide what the fee was actually paid for, and if he decides it was to take the property off the market, then it would be unfair if the landlord pulled out and did not compensate the tenant in the same way the tenant would be expected to compensate the landlord in the same circumstances.

This is all pretty theoretical though, as unless you have offered the property to a property or contract lawyer, they will probably just moan and accept the referencing fee returned.

andystephens

As far as I am aware, contracts have not been signed yet.

Fire_Fox

andystephens wrote: »

As far as I am aware, contracts have not been signed yet.

No contract between landlord and letting agent?

andystephens

I will get him to check that contract. As far as I am aware the wanna be tenants have only put money down and not signed anything

ceh209

If I was that tenant I'd be expecting ANY money I'd paid the LA to be refunded, and I'd NEVER rent from them again!

Whether your friend has to stump up the money to the LA instead (as it's his fault it's been withdrawn), will depend on his contract with the LA.

tbs624

"wants to know what will happen with the agents and the holding deposit for the other people"

The LA acts for your friend the LL. Your friend should insist that the LA returns the potential Ts holding deposit in full and offers a full apology as it is your mate as LL who is unable/unwilling to go ahead with letting the property to them. Your friend also needs to decide whether to have a dog or to bark himself.