Are these terms on scottish rental legal?

dekaspace

A few things here


"We will take up references on behalf of our client, which may include a bank reference(for which your bank will charge a nominal fee) a credit reference a emoloyers and landlord reference (if applicable)


A payment to indicate your commitment is required when you submit your application and is held against expenses. If your application is sucessful the payment will be deducted from your initial money"


The payment is non-refundable should your application be unsucessful or withdrawn in certain circumstances, the details of which are set out in the confirmation letter. Please note this does not constitute a tenancy or offer of a tenancy but is required as proof as your serious intention to proceed"


Now that seems like its a fee and not a very well hidden one at that! As whats to stop them withdrawing the application, or saying his credit score wasn't high enough (He has never had credit in his life but been unemployed for 4 years and was in education for 5 years before that)


It also mentions tenants must get a insurance policy that covers at least £2500 and provide the certificate to them upon request.


It also mentions agency may do checkups at random but arrange a time with tenant, to check the cleanliness of the property, and the state of the garden (when we vistied the garden was overgrown and must of been around a year since last cut)


Its warning signs, my friend is the one wanting the property and he is excited about moving just worried he may get ripped off.

topsales

Scotland is much better than England about upfront rental payments. Only a months deposit should be asked for - none of this fees up front malarky! I have just rented in England and was amazed at the charges. Also had to get the tenant insurance policy here - not in Scotland. Your friend is being diddled!

Slithery

dekaspace wrote: »

The payment is non-refundable should your application be unsucessful or withdrawn in certain circumstances, the details of which are set out in the confirmation letter. Please note this does not constitute a tenancy or offer of a tenancy but is required as proof as your serious intention to proceed"

So what does the confirmation letter say?

Celepie

Some rental agencies do charge an admin fee for credit-checking and whatnot. Pretty sure when I rented last (quite a few years ago) it involved a small fee (about £30 or so). The terms look quite standard for the big agencies in my experience. As long as they aren't insisting your friend take out insurance with them (or they benefit in some way from him doing so) I believe it's fine for them to ask for that.

dekaspace

Celepie wrote: »

Some rental agencies do charge an admin fee for credit-checking and whatnot. Pretty sure when I rented last (quite a few years ago) it involved a small fee (about £30 or so). The terms look quite standard for the big agencies in my experience. As long as they aren't insisting your friend take out insurance with them (or they benefit in some way from him doing so) I believe it's fine for them to ask for that.

In Scotland? Pretty sure its not allowed here.

Slithery wrote: »

So what does the confirmation letter say?

There is none, since he hasn't filled in the form yet.

Celepie

Ah, I was renting pre the ban. I didn't realise it had been as long ago as that! Now I feel old.

00ec25

why have you not used google to look for scottish websites explaining the scottish system?

for example:
https://www.citizensadvice.org.uk/scotland/housing/renting-a-home-s/common-problems-with-renting-s/#h-illegal-fees-or-premiums
Illegal fees or premiums

A private landlord or letting agency might ask for a deposit before you have signed a tenancy agreement. It is sometimes called 'key money' or a 'holding deposit'. If the landlord does not refund this deposit at the start of the tenancy or if you decide not to take the tenancy it becomes an illegal fee, also known as a premium. If the landlord suggests to turn it into a tenancy deposit then you might find that acceptable.

Other illegal premiums include charges for registering with the letting agency, charges for credit checks and administration fees. Any fees charged by the landlord to create or renew a tenancy agreement are also illegal.

You can ask the landlord or letting agency to repay these fees up to 5 years after the tenancy has ended and if the landlord refuses you can ask the court to take action.

Find out more about how to reclaim illegal fees using the online toolkit on the Shelter Scotland

also
http://www.bbc.co.uk/news/uk-scotland-33782744
"The second issue is the non-refundable holding deposit. Deposits are normally paid by tenants but they are to guarantee the obligations under the lease.
"But in this case the tenant is having to pay in order to get the lease in the first place. And if they don't go ahead with it, the deposit is not returned.
"That technically under the law could be deemed an illegal premium."

taken from a student union website:
readytorent.nus.org.uk/wp-content/.../Be-Clear-on-Fees-and-Licensing-Scotland.pdf
"Letting agents’ fees:
Letting Agents in Scotland are prohibited from charging fees before you sign up to rent a property. This includes:
 Charging a ‘finder’s fee’ or registration fee to sign up with the agent
 Asking for a deposit before you have secured a property to live in
Once a letting agent has found a property that you want to rent, they are entitled to ask you to pay a deposit. Letting agents have no legal right to ask you to pay any other fees or charges in order to rent a property. If you are asked to pay any of these unlawful charges, challenge the letting agent and refuse to pay. This includes:
 Administration charges
 Credit reference checks
 Personal reference checks
 Property checks, inventory listings or appointments
If you have already been charged these fees, write to your letting agent and ask for your money to be repaid in full. If they refuse, seek advice from your Students Association, as you may be able to take the agent to the small claims court to recover your money."



of course having said all that, the fact remains that the letting agent is genuinely incurring some (small) costs in performing that sort of work so it is rather unfair that they have to foot the bill for what could be a significant number of poor quality applicants who are rightly rejected

dekaspace

00ec25 wrote: »

why have you not used google to look for scottish websites explaining the scottish system?

of course having said all that, the fact remains that the letting agent is genuinely incurring some (small) costs in performing that sort of work so it is rather unfair that they have to foot the bill for what could be a significant number of poor quality applicants who are rightly rejected

I did but its common to hear about carefully worded get arounds, or calling it something else.


I wanted to go for somewhere a few years ago but agent told me when I was about to sign it cost £75 for credit checks, but it wasn't them who charged but a third party thus they weren't charging fees.


This new agency has in large bold writing at bottom of terms "X DOES NOT CHARGE REFERENCING FEES"


But it was more that it seems they don't charge but if they back out they keep this money, of which they don't state the amount.


But some websites say credit referencing is a given but tenant should be given option to do it themselves.

cjmillsnun

dekaspace wrote: »

A few things here


"We will take up references on behalf of our client, which may include a bank reference(for which your bank will charge a nominal fee) a credit reference a emoloyers and landlord reference (if applicable)"

This part is fine. The fee is a nominal fee charged by the bank, normally directly to you by the bank. The credit reference would only be a check of publicly held information.

"A payment to indicate your commitment is required when you submit your application and is held against expenses. If your application is sucessful the payment will be deducted from your initial money"

All fine except the underlined bit.

The payment is non-refundable should your application be unsucessful or withdrawn in certain circumstances, the details of which are set out in the confirmation letter. Please note this does not constitute a tenancy or offer of a tenancy but is required as proof as your serious intention to proceed"

Again the underlined bit is not OK.

Now that seems like its a fee and not a very well hidden one at that! As whats to stop them withdrawing the application, or saying his credit score wasn't high enough (He has never had credit in his life but been unemployed for 4 years and was in education for 5 years before that)

Yup it's a fee if you have a non returnable condition.

It also mentions tenants must get a insurance policy that covers at least £2500 and provide the certificate to them upon request.

That's fine as long as they don't insist on arranging the insurance through their "preferred company"

It also mentions agency may do checkups at random but arrange a time with tenant, to check the cleanliness of the property, and the state of the garden (when we vistied the garden was overgrown and must of been around a year since last cut)

This is standard fare. I would get your friend to insist the wilderness has been dealt with prior to him moving in.

Its warning signs, my friend is the one wanting the property and he is excited about moving just worried he may get ripped off.

My only concern is the holding deposit being a potential fee.

dekaspace

Thanks, back to the original thing he wrote a paragraph stating he was moving 30 days from the 18th (to give it 2 days from today for letter to arrive)


He didn't write his flatmate was moving though, but got his flatmate to sign it so don't know if thats enough to release him, I assume not but current flatmate wants to stay


Its more for housing benefit side too, so the one left can apply for full housing benefit for the property.

dekaspace

Sorry to also post but I panic friend has screwed up his notice


It literally is


"I (name) will be handing in my notice for the address(address given) on the 18/11/2017"


He never mentions the landlords/agents name and to me implies he is handing in his notice on the 18th November and not moving out then.


I guess its wrong?