Advice re letting agents fees

claireac

Hi,

I don't normally post on this board (on dfw) but hoped that could you give me some advice / your views on my sons situation.

He's looking to rent a flat with his girlfriend and has only v recently become self employed.

They've found a flat through a letting agent (against my advice as I felt they'd be better waiting a bit to go through a private person if you know what i mean), and have a paid a holding deposit of £250. they have to pay fees for the credit check and an extra £50 for my ex husband to act as guarantor.

Now what I'm absolutely steaming about is that even if for some reason they fail the credit checks they don't get their holding deposit back. I think that's scandalous!!!

Is this the norm??? They're so v young and have saved hard to get enough to make this move.

Many thanks,
Claire

silvercar

Its designed so they only put themselves forward if they have clear credit.

PasturesNew

I'd expect them to pass the credit checks.
Nothing there sounds doubtful to me. Dad as guarantor clinches it.
Of course, if they default, or think they can just move out as they've found a nicer one after they've signed ... dad'll have to stump up for the whole lot for the remainder of the agreement (unless the agents manage to find another tenant).

The situation you've outlined is "the way things are". There aren't many private landlords these days. Even those that take your rent off you use agents for the finding/checking part. There's a lot of legalese/legislation these days so it's easier for them to get that expertise from the agent than keeping on top of it themselves.

Notlob

silvercar wrote: »

Its designed so they only put themselves forward if they have clear credit.

Agree. If people had doubts as to whether they would pass reference procedures, they are likely not to proceed.

claireac wrote:

Now what I'm absolutely steaming about is that even if for some reason they fail the credit checks they don't get their holding deposit back. I think that's scandalous!!!

Then go via a private LL who don't charge and (not suggesting your son is in this category) therefore are more likely to get the renters with poor credit histories.

Sounds like a sensible business decision that also benefits LL's who use LA's. Win, Win situation.