Will my son lose up front renting costs ?

motherofstudents

I am hoping someone can help as I don't know a lot about renting properties and have not been able to find an answer to my question although there is a lot of helpful stuff on here. My son is currently in a student houseshare (although no longer a student) He has been looking around for a house to rent with his girlfriend and went to see one last night which they really like. The letting agent told them someone else is interested in it but they have another one to see this morning so he was told to ring back after 10.30. He didn't wait but rang earlier and wanted to put a holding deposit down but the agent said they couldn't do that. What they have said is they will email him the forms to fill in so that they can do credit checks and references. This will obviously involve them paying the fees for this. The agent said if the other people do the same it will be down to the landlord to decide who they want. So, my question is, does anyone have any advice as to how they should proceed ? Are these fees lost if the landlord chooses the other applicant or could they still be used for another property ? Sorry if these are basic questions but I really don't know enough to help him with any advice. Thank you.:)

BitterAndTwisted

Yes, the credit-referencing fees can be used for another property if it's through the same agent.

As an aside, has your son investigated his liability for Council Tax as the only non-student in the current property?

motherofstudents

Thanks, I will let him know. Yes, he sorted out the council tax a few months ago as he started off as a student, graduated and now works, but he will hopefully soon be a post grad student when he gets funding for PhD.

mabinogion_2

Its unusual in my experience for a landlord to do things in that order. Has the letting agent told your son how much the reference check will cost, and if it will be possible for your son to retain the paperwork of the reference once it's done? I am not convinced that other letting agencies will take into consideration a tenants own credit referencing paperwork. I know I am being cynical, but I think part of the reason is because its a lovely little moneyspinner for them to charge for credit checks. I recently stumped up £75 for my daughter to have a tenent credit check. I am certain letting agencies gets them done for way less cost.

may_fair

In this LL's shoes, I would accept one of the offers subject to references (confirming what the prospective T claims about himself). I would not reference check two prospective Ts at the same time and decide after that - as it's not fair on the one who pays for a check for nothing.

However, there's nothing to stop LL proceeding like this. Up to your son to decide whether it's worth the risk of wasting the money or not. As B&T says, the reference checks might be 'reusable' but only with that particular agency (and I wouldn't assume this - ask first and get it in writing).

G_M

Before (or when) handing over money, your son needs to get clear written confirmation of
1) what it is for - credit referencing? holding deposit? etc
2) in what circumstances it is or isn't refundable - if he fails credit ref? if landlord gives prperty to another tenant? if your son changes his mind?
3) whether the credit reference can be 're-used' by that agency for another property, and if so in what timescale - 1 week? a month later? 6 months? (!!!)

These points need to be unambiguous and preferably written, on his receipt or similar.

KateLiana27

Landlord should make a decision BEFORE allowing tenants to pay for checks (subject, of course, to checks being acceptable).

What is being proposed here is the equivalent of a house seller accepting two offers on their property, then sitting back while both potential buyers pay for surveys and solicitors fees while they make a leisurely decision on who to sell to at the end. Scandalous.

Yes, your son could most likely use the paid-for checks on another property with the same agent, but what if he finds a property he prefers with another agent?

Tell him to go elsewhere - I've honestly never heard of this concept.

motherofstudents

Thanks everyone for replies. I must say it does seem unfair to do this. It's a house in a very nice area but belonged to a woman who has gone into a nursing home and her family renting it out. They have not done anything to it, old carpets and furniture etc. The other interested party wanted to change the carpets for a lower rent. Son says he has received an email saying he has paid £200 inc a holding deposit. How can they take a holding deposit if there are two people going for it ? I am quite worried but there's not much I can do as it's my son and girlfriend's decision but I will pass on the info and see what they decide to do. I've told him to ring them to clarify. Just told me he's paid £200 for checks plus £200 holding fee.

superted187

Typical money grabbing letting agent and landlord. I know your son really wants the place, but is there really nothing else suitable out there?

I'd advise staying away from this particular landlord and letting agent. Bear in mind that they will hold onto even more money in the form of a deposit - and weather you get that back or not when you move out is a whole other ball game. If they are pulling these stunts now before you've moved in, you can guarantee they'll do it again.

motherofstudents

Just wanted to update everyone who took the time to reply. I rang my son this morning and he took half an hour off from the hospital to go into the agents. He has told them he doesn't want to lose the money and they agreed it wasn't fair so they are going to speak to the LL and see if he is happy with them renting BEFORE they do any checks. If LL is ok, they will then do the checks and the £200 will hold the house for them. Phew, I feel like I am going through it all myself while my son is so laid back.....they have to be out of their house next Thursday and agent says it will take a week to sort out. I have offered them a tent in the garden. All your help is appreciated, at least we feel a bit better now.