EA want 1 weeks rent BEFORE offer

james72

Hey,


Is this normal - as it seems weird to me


I saw a property [to rent] - I made an offer


The estate agent did two things then that I was surprised at


They told me I had to give them 1 weeks rent, as a reservation fee, BEFORE they pass on the offer.


So to place the offer, I had to give them 1 weeks rent. Which I would lose if I didn't move in. I would get it back if the landlord rejected the offer.


This seems to be a reservation fee - that would be more akin to after an offer has been accepted - to stop anyone gasumping you [?]


The other thing the EA did was tell me what the current tennants pay each week. This hardly seems in the best interest of the landlord.



So the landlord lists a price X. I offer Y. The EA tells me they currently get Z [a little higher than Y - but less than X].


That does make me wonder - if I make an offer... is one weeks rent - X, Y, or Z?


But the idea of giving them a reseravtion fee - before I have any idea if the landlord would accept my offer - is [in my mind] wrong.


Is this now normal?


I haven't rented before - so there's a good chance it's just me that's wrong in my thinking


Thanks for any help/advice or the such like xx

scholesfan88

This is the norm.

jonnygee2

They told me I had to give them 1 weeks rent, as a reservation fee, BEFORE they pass on the offer.

I was once asked for this. I wanted to ask if the rent on an overpriced flat could be reduced and they asked me for a huge 'holding deposit;. Are you in London?

I told them to take a hike. Absolutely no chance would I hand money over just for them to make a phone call. Had to find another flat in the end.

Often (heard from friends and seen on this board), if the offer isn't accepted or you change your mind they will muck you around, being extremely slow about returning the deposit and continually encouraging you to use it on another of their properties. They will know that you probably need that money to sign any tenancy contract so just delaying the return by a month or so will be enough to screw you over.

To me, it's a dodgy practice and not one I'd countenance. The vast majority of estate agents and landlords I have dealt with did not ask for this.

tom9980

It is illegal to charge a fee. Holding deposit is the correct term and its 1 week rent maximum.

james72

It's such a shame they want this BEFORE they find out if the offer will be agreed or accepted


That is such a scummy move


As I don't mind paying it as a 'holding' deposit


But BEFORE there's any offer made to the landlord - would be crazy


I guess that means they won't take any other offers for the flat - so it seems reasonable if you had an offer accepted and you want to go ahead - to get them to hold it, with a deposit you lose if you change your mind...


I guess all I can do is say, can you conifrm they have accepted the offer - then yes I will go ahead


They will say - but we need your money first


I then say - but with out them accepting - there is no weekly rent amount... it's X Y or Z


Hmm


And yes it's in London

Cakeguts

Just don't pay it. Find a different property with an agent that doesn't charge this.

Marvel1

I'm not sure but I would want it in writing from them, listing very clearly what conditions you would get the money back, not a simple "landlord rejected the offer".

james72

From EA:


[FONT=&quot] If you wish to make a tenancy offer following your viewings[/FONT]
[FONT=&quot] *We will request a holding deposit of 1 weeks rent*[/FONT]
[FONT=&quot] I look forward to meeting with you.[/FONT]
[FONT=&quot] *Terms of Holding Deposit: Acceptance of your holding deposit does not imply a tenancy and is subject to contract. There is an administration charge of [FONT=&quot]�[/FONT]1 weeks rent payable should you cancel an accepted offer or fail referencing. Should the offer not be accepted by the Landlord, the holding deposit will be repaid to the applicant in full. (A 3% surcharge would apply if using a CREDIT CARD or NON UK debit card)[/FONT]

james72

That was in a bunch of small print I didn't read before going on the viewing


And since the viewing - and them telling me I had to stump up the money before the pass on my offer - I read it


Then started this thread - to see if this was normal


As it could well be - I just have no experience and to me it seemed rather dodgy to ask for it BEFORE you even know if the offer is accepted ... as it's called a 'holding deposit' - what are they holding.... and how many people give one - if it's before the landlord says yes?


And it really seems to be in their interest for you to fail their referencing - if they get to keep the money

Marvel1

james72 wrote: »

From EA:


[FONT=&quot] If you wish to make a tenancy offer following your viewings[/FONT]
[FONT=&quot] *We will request a holding deposit of 1 weeks rent*[/FONT]
[FONT=&quot] I look forward to meeting with you.[/FONT]
[FONT=&quot] *Terms of Holding Deposit: Acceptance of your holding deposit does not imply a tenancy and is subject to contract. There is an administration charge of [FONT=&quot]�[/FONT]1 weeks rent payable should you cancel an accepted offer or fail referencing. Should the offer not be accepted by the Landlord, the holding deposit will be repaid to the applicant in full. (A 3% surcharge would apply if using a CREDIT CARD or NON UK debit card)[/FONT]

Credit card fees were banned 13/01/2018.

Find a new letting agent, they have no idea what they are doing.

Nothing stopping them saying you failed the referencing but in reality you passed it's the landlord who rejected you for some other reason.

james72

They are one of the big EA - so it's not a small firm bending the rules