Fees for changing mind about renting??

plummers38

My son and 3 Uni friends recently found a house to rent whilst at Uni. Unfortunately one of his friends failed a year one exam and the short story is that they could no longer rent the house as previously decided upon.

The estate agent charged them all £100 initially to hold the property. The agent was informed that they could no longer rent the property and each of them has now received a bill for £180 admin costs.
None of them have signed any paperwork.
Do they have to pay this bill and does the agent have any legal right to pursue it?

Help....thanks in advance... Paul

AbsoluteReturn_2

What was the £100 for if not to cover just this type of situation? If there's no contract there's no obligation to pay an admin fee... and £180 would've been scandalous anyway.

DRP

plummers38 wrote: »

My son and 3 Uni friends recently found a house to rent whilst at Uni. Unfortunately one of his friends failed a year one exam and the short story is that they could no longer rent the house as previously decided upon.

The estate agent charged them all £100 initially to hold the property. The agent was informed that they could no longer rent the property and each of them has now received a bill for £180 admin costs.
None of them have signed any paperwork.
Do they have to pay this bill and does the agent have any legal right to pursue it?

Help....thanks in advance... Paul

I'd say screw 'em. This kind of situation is exactly what the holding deposit is for.

Werdnal

When you say "none of them has signed any paperwork", did they not get a any details of what the initial £100 was for and the terms for the holding deposit. Did the agent carry out any credit checks, references etc for them?

Not saying the agent is correct in charging this, but if they have done any prep work towards them taking the property, even if they have not signed the tenancy, there may be fees to pay.

How far away is the tenancy start date? Did they have plenty of notice to let it again, or did the agents only hear they would not be taking the property a few days before they were supposed to move in?

plummers38

They were told the initial £100 (each) was to take the property off the market.
The invoice they received stated it was £180 for admin costs, but I do know they had started credit checks.
The agent was told that they wouldn't be taking the property one month prior to the move in date. Thanks again for any advice

Werdnal

plummers38 wrote: »

They were told the initial £100 (each) was to take the property off the market.
The invoice they received stated it was £180 for admin costs, but I do know they had started credit checks.
The agent was told that they wouldn't be taking the property one month prior to the move in date. Thanks again for any advice

And does that £180 include the £100 already paid?

If they had started credit checks there must have been paperwork - no-one can credit check a tenant without basic ID and financial information, so there must have been some paperwork completed?

spacey2012

It is to discourage them claiming the £100 back.

Fees charged in advance other than rent and bond are illegal, they can charge a letting fee but this is only for letting a property where the tenancy is taken up.

Accommodation Agency Act 1953:
1 Illegal commissions and advertisements.(1)Subject to the provisions of this section, any person who, . . . F1 —
(a)demands or accepts payment of any sum of money in consideration of registering, or undertaking to register, the name or requirements of any person seeking the tenancy of a house;
(b)demands or accepts payment of any sum of money in consideration of supplying, or undertaking to supply, to any person addresses or other particulars of houses to let; or
(c)issues any advertisement, list or other document describing any house as being to let without the authority of the owner of the house or his agent,
shall be guilty of an offence.
(2)A person shall not be guilty of an offence under this section by reason of his demanding or accepting payment from the owner of a house of any remuneration payable to him as agent for the said owner.
(3)A person being a solicitor shall not be guilty of an offence under this section by reason of his demanding or accepting payment of any remuneration in respect of business done by him as such.
(4)A person shall not be guilty of an offence under this section by reason of his demanding or accepting any payment in consideration of the display in a shop, or of the publication in a newspaper, of any advertisement or notice, or by reason of the display or publication as aforesaid of an advertisement or notice received for the purpose in the ordinary course of business.
(5)Any person guilty of an offence under this section shall be liable on summary conviction to a fine not exceeding [F2level 3 on the standard scale] or to imprisonment for a term not exceeding three months, or to both such fine and imprisonment.
(6)In this section the following expressions have the meanings hereby assigned to them that is to say:—
“house” includes any part of a building which is occupied or intended to be occupied as a dwelling;
“newspaper” includes any periodical or magazine;
“owner”, in relation to a house, means the person having power to grant a lease of the house.

plummers38

No werdnal, the £180 is on top of the £100.
Credit checks had started online, they all received a questionnaire as did all the guarantors

spacey2012

I would say that constitutes a demand, has anyone put their name to these letters ?
If not ask them to be signed and identified.

(b)demands or accepts payment of any sum of money in consideration of supplying, or undertaking to supply, to any person addresses or other particulars of houses to let; or

Manchee

spacey2012 wrote: »

It is to discourage them claiming the £100 back.

Fees charged in advance other than rent and bond are illegal, they can charge a letting fee but this is only for letting a property where the tenancy is taken up.

Accommodation Agency Act 1953:
1 Illegal commissions and advertisements.(1)Subject to the provisions of this section, any person who, . . . F1 —
(a)demands or accepts payment of any sum of money in consideration of registering, or undertaking to register, the name or requirements of any person seeking the tenancy of a house;
(b)demands or accepts payment of any sum of money in consideration of supplying, or undertaking to supply, to any person addresses or other particulars of houses to let; or
(c)issues any advertisement, list or other document describing any house as being to let without the authority of the owner of the house or his agent,
shall be guilty of an offence.
(2)A person shall not be guilty of an offence under this section by reason of his demanding or accepting payment from the owner of a house of any remuneration payable to him as agent for the said owner.
(3)A person being a solicitor shall not be guilty of an offence under this section by reason of his demanding or accepting payment of any remuneration in respect of business done by him as such.
(4)A person shall not be guilty of an offence under this section by reason of his demanding or accepting any payment in consideration of the display in a shop, or of the publication in a newspaper, of any advertisement or notice, or by reason of the display or publication as aforesaid of an advertisement or notice received for the purpose in the ordinary course of business.
(5)Any person guilty of an offence under this section shall be liable on summary conviction to a fine not exceeding [F2level 3 on the standard scale] or to imprisonment for a term not exceeding three months, or to both such fine and imprisonment.
(6)In this section the following expressions have the meanings hereby assigned to them that is to say:—
“house” includes any part of a building which is occupied or intended to be occupied as a dwelling;
“newspaper” includes any periodical or magazine;
“owner”, in relation to a house, means the person having power to grant a lease of the house.

Is this actually right? How come agents charge holding fees etc if it is?

spacey2012

Because they are taking the Pi55 thats why and nobody is aware of the law.
Shelter in Scotland are prosecuting agents using a similar act.
I doubt even half of these agents that appear to spring up know it is illegal and if so "everyone else does it" .
If the letter is not signed on behalf of "who ever" it is not a legal bill anyway.
I would insist someone puts a name to it, then ask them if they would like one opportunity to refund the £100 x 3 or start packing a toothbrush for a 3 month holiday.