Any law on tenant referencing? (How many applicants at once)

MarkA67

I'm new here and signed up because we have just been dropped as potential tenants for a property. We found a private landlord on Gumtree (many people probably just face palmed at the very mention of that website) - We got in touch and liked the sound of it and we agreed to do a tenant reference and transfer the fee to his bank via BACS. It was all completed in less than a day, we had filled out the forms, they'd contacted all relevant parties and we had passed. Sadly, despite this the landlord has turned us down saying he's giving it to someone else, bearing in mind he told us we passed "with flying colours" !!

Forgetting for a moment that this might have been a scam (he asked for an amount that is different to what the referencing company state on their website) are they even allowed to run reference checks on multiple potential tenants at once? Do they not have to wait for results from one before referencing another purely to avoid people wasting money like this? I know for a fact I wouldn't have applied if I knew loads of others had applied!

Chrysalis

I think they allowed, I stay away from people who charge fees for checks and such, if they want to carry out those checks, they can but I am not paying for it.

I once responded to such a request by stating I am carrying out a credit check on them and will send the bill. obviously that didnt end well, but the good news is these kind of fees will be outlawed soon, even the tories see it as wrong.

theartfullodger

Indeed: And of course fees from tenant has been unlawful in Scotland since at least 1984: Come on Engerland, catch up!

And at least in Scotland you can look up, for free, if there is any landlord registered (Mandatory, up to £50k fine for not complying, LL must be a "fit and proper person"..) for the property you wish to rent - and see if his name is the same as the one trying to take your money.

Yeah, not perfect in Scotland but a start and a help to keep the bent crook cheating landlords out..

As a landlord since 2001 it's a mystery to me why tenants don't ask the odd simple question -
- have you got permission from the mortgage company to let the place?
- Got any landlord insurance?? (Matters if the place burns down .. no insurance, no cover..)
- Can they see the electrical and gas certificates...
- Never had a tenant ask to see the EPC
etc
etc
etc

Chrysalis

they dont ask because its a letters market, any landlord can just send someone away who they dont like and will still find a tenant. Plus I expect most tenants are not aware of letting laws.

Pixie5740

The landlord lets property in order to make money. He doesn't charge tenants cost price for things. You wouldn't expect your rent to equal his mortgage payment would you? It's the same with referencing charges.

Do you have anything in writing stating under what conditions the referencing fees can be refunded. For example, passing the referencing but then Shady McShadyster choosing another tenant? In fact I wonder if Shady is even a landlord at all. What's the bet he doesn't have a property to let and has just charged several people to be referenced for a property that was never available?

Guest101

I'd risk small claims track to get money back

MarkA67

There's been a bit of a development, I was up till 1AM doing some research! Turns out the property was listed on Gumtree by a company called OpenRent who advertise on behalf of landlords. According to their terms they have a flat £20 referencing fee and only put you in touch with LL's to ask questions / arrange viewings and all referencing requests go through them, so as it turns out the LL went at it alone and also over charged despite having a contract with the company.

Secondly, from what I've read on multiple websites, if the potential tenant fails the referencing, withdraws or is unable to provide more information when requested then the fee is forfeited. However, if the potential tenant passes the referencing but the LL withdraws through no fault of the tenant then the fees should be reimbursed.

Guest101

MarkA67 wrote: »

There's been a bit of a development, I was up till 1AM doing some research! Turns out the property was listed on Gumtree by a company called OpenRent who advertise on behalf of landlords. According to their terms they have a flat £20 referencing fee and only put you in touch with LL's to ask questions / arrange viewings and all referencing requests go through them, so as it turns out the LL went at it alone and also over charged despite having a contract with the company. - This is not relevant. You don't have a contract with Openrent. You cant rely on their terms and conditions.

Secondly, from what I've read on multiple websites, if the potential tenant fails the referencing, withdraws or is unable to provide more information when requested then the fee is forfeited. However, if the potential tenant passes the referencing but the LL withdraws through no fault of the tenant then the fees should be reimbursed.

Yes, which is why I said I'd risk small claims to get it back, is that what you want to do?

Chrysalis

Pixie5740 wrote: »

The landlord lets property in order to make money. He doesn't charge tenants cost price for things. You wouldn't expect your rent to equal his mortgage payment would you? It's the same with referencing charges.

Do you have anything in writing stating under what conditions the referencing fees can be refunded. For example, passing the referencing but then Shady McShadyster choosing another tenant? In fact I wonder if Shady is even a landlord at all. What's the bet he doesn't have a property to let and has just charged several people to be referenced for a property that was never available?

The issue is letting agents rather than landlords. I let direct from my landlord and as if by magic have none of these fees.

It costs a letting agent £2 to do a credit check but they charge something like £50-100 for it. Letting agents are leeching of the system, an expensive middle man.

Guest101

Chrysalis wrote: »

The issue is letting agents rather than landlords. I let direct from my landlord and as if by magic have none of these fees.

It costs a letting agent £2 to do a credit check but they charge something like £50-100 for it. Letting agents are leeching of the system, an expensive middle man.

It doesn't cost apple £600 to make an iPhone either, those so and so's!....

Chrysalis

apple dont apply a 25x upwards multiple from costs to profit tho.

Regardless I dont think its a good comparison, if I am renting a property it is not my choice to purchase a credit check, that is their business, and if they want to carry one out then they pay for it.

Credit card companies dont bill me for credit check's on an application.
Likewise mobile phone companies.