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Student Accommodation

Hello,

We are a group of students applying for a house this coming year, however the property agency is not asking of a deposit but a 'tenancy set-up fee' instead. Is this similar to a deposit or something which we should be aware of?

Thank you,
Natasha

Comments

  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    Is it refundable?
  • It sounds like an application fee. This is pretty common. Most application fees are not very expensive and non-refundable. A deposit is different because that will be refunded after your lease ends depending on damages done.
  • bouncydog1
    bouncydog1 Posts: 2,696 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Just going through a similar process so the following might help you.

    Agency charging the following fees:-

    £100 non-refundable deposit to take property off market whilst they do all of the credit checks and effectively hold the property for my DD;

    £55+vat for the short tenancy agreement (I'm assuming this is to cover the agent's costs in drafting the agreement).

    On signing the agreement they pay a deposit which must be deposited in a special deposit account which means the agent cannot run off with it!

    One month's rent in advance.

    In addition there is an inventory charge which is for the agent making a list of all of the contents in the property and providing a copy to each of the tenants. When they go into the property they must check that everything on the list is there, otherwise they will have to replace it at the end of the tenancy.

    By the sounds of it the charge you mention is the agent's charge for setting up the tenancy. You are also likely to be charged a deposit which is refundable provided the property is vacated in similar condition to when it was taken on.

    The agent is obliged to provide you with a full list of fees and charges up front, together with a copy of the tenancy agreement which you must get reviewed before you sign. Does your Uni offer such a service?
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