Advice - new private rental terms

lildoonbuggy

Hi all, been a while since I had enough of a problem to post. Lucky me! We're about to move from a managed property to a private rental managed by a friend of the landlord (lives overseas). Our offer was accepted, which is great, and we've since received an email with some very direct terms in it. I might be oversensitive but I'm a bit nervous about how protected our money is. Wording is below:

An admin fee is charged by all agents to undertake the vetting of the tenants and the administration required to draft the tenancy and pay for the inventory / check in schedule of the property. This is a non-refundable fee of £300 which will be used immediately to undertake the relevant checks. The affordability element of the check is calculated by taking 35% of the gross salary for a tenant, and 25% of the gross salary for a guarantor. If you are self employed, the % are based on your net profit.

A holding deposit, equivalent to 1 week’s rental and the admin fee of £300 is due immediately and is non refundable. This is taken from you in order for us to stop the property being advertised and to be taken off the market. This amount is at risk if any information is found to be untrue or misleading which could result in your application not being accepted. If we do not accept your application on this basis, the holding deposit will not be refunded.

Remaining 5 weeks deposit and first month’s rent are due before you take occupation. The total amount due ahead of moving in is £X. Your deposit and rent is held and is at risk from the day you sign the AST agreement.


Ive asked a few clarifying questions (does the extra week count towards the deposit, will our deposit be protected and most importantly, what does at risk mean?) but also wanted to see if any of our in house gurus could shed some light on whether this sounds like the normal legal speak, or is something to be worried about. Many thanks in advance! :beer:

G_M

Note that from July 1st, all these up-front fees are being banned, other than rent and security deposit.


But for now, the fees are pretty standard as what letting agents charge. Less usual for landlords who self-manage (or use their mate to manage).



Biggest risk seems to be..... who are you paying? Not a property found on gumtree I hope! Handing over several £00s to someone and hoping they genuinely represent a genuine landlord who is genuinely letting the property.......



Have you viewed the property?
Was the 'agent' ( friend of landlord) present? and appeared genuine?
Was the property occupied or vacant?
Does the name of the landlord match the name of the owner of the property? (£3 here).

lildoonbuggy

Thanks G_M I'd hoped this might catch your attention! Unfortunately we're too impatient to wait until July, which would have saved us £300 at least! The place is advertised through a 'reputable' online platform for private landlords. We've seen the house twice now and there are tennant's in situ in the process of moving out. They were there 3 years so It seems legit, and the place is also advertised on Zoopla. It's a relief to hear that the whole thing about payment being at risk isn't something that sounds too wild to you. Great shout on checking the name - I will absolutely do that.

Many thanks! LDB

G_M

There have been examples (yes, mainly gumtree) of departing tenants posing as the landlord (or his mate), taking the deposit/fees from a new applicant, then disappearing ino the night.....


Not saying that's what's happening here - just flagging the warning.

GillsMan7

G_M wrote: »

Note that from July 1st, all these up-front fees are being banned, other than rent and security deposit.

1 June I thought? Has it changed, or am I mistaken?

G_M

Sorry - looking into this and updating the stickies is still on my to-do list.


You're prob right!

Comms69

G_M wrote: »

Note that from July 1st, all these up-front fees are being banned, other than rent and security deposit.


But for now, the fees are pretty standard as what letting agents charge. Less usual for landlords who self-manage (or use their mate to manage).



Biggest risk seems to be..... who are you paying? Not a property found on gumtree I hope! Handing over several £00s to someone and hoping they genuinely represent a genuine landlord who is genuinely letting the property.......



Have you viewed the property?
Was the 'agent' ( friend of landlord) present? and appeared genuine?
Was the property occupied or vacant?
Does the name of the landlord match the name of the owner of the property? (£3 here).

June 1st isn't it? Edit didn't read full thread.


I'm 99% sure it's June

G_M

Bake me a cake and I'll check today!