Refund on rent deposit

adamibrahimt

Hi,

I made a deposit payment on a house I was applying for on the 12th of March after viewing property on advice of the agent. On the 14th the agent asked for ID documents to do a credit check. On the 16th I changed my mind and requested a refund. Now agency are claiming £300 out of £625 as costs. Is that appropriate? Mind you I did not sign tenancy agreement yet nor gotten confirmation the application was successful. Can someone please advice me. Thanks

Adam

sammyjammy

If they can prove that its cost them £300 for fees and admin then yes its viable, if they had done the credit check that definitely costs them

MaryNB

adamibrahimt said:

Hi,

I made a deposit payment on a house I was applying for on the 12th of March after viewing property on advice of the agent. On the 14th the agent asked for ID documents to do a credit check. On the 16th I changed my mind and requested a refund. Now agency are claiming £300 out of £625 as costs. Is that appropriate? Mind you I did not sign tenancy agreement yet nor gotten confirmation the application was successful. Can someone please advice me. Thanks

Adam

England? How much is the monthly rent? The can charge up to an equivalent of 1 week's worth of rent as a holding deposit. If you pull out (and it wasn't due to excessive delays on the lettings agent's part) you are not entitled to your holding deposit back. 

ETA: For full info see pages 43 to 59 of the following: 

Tenant Fees Act 2019: guidance for tenants

adamibrahimt

Thanks for your replies. It is in Scotland. They didn't mention anything about the credit checks. They claim readvertising cost

theartfullodger

£625 for one week's rent holding deposit?? Really?  If weekly rent was less than this, follow advice here...
https://england.shelter.org.uk/housing_advice/tenancy_deposits/holding_deposits

MaryNB

adamibrahimt said:

Thanks for your replies. It is in Scotland. They didn't mention anything about the credit checks. They claim readvertising cost

Ah ok. Rules are different in Scotland, I don't think holding fees are legal there. I'd recommend contacting Shelter Scotland for help.

Shelter Scotland - Unlawful fees

However, some landlords or letting agents also ask for a sum of money for granting or renewing a tenancy. This payment can be called a 'premium', 'key money', a 'holding deposit', or could be a charge for a credit check or 'admin fees'.

Under the Rent (Scotland) Act 1984 and the Housing (Scotland) Act 1988 it's unlawful for landlords or letting agents to charge a 'premium' for the granting or renewal of an assured, short assured, or private residential tenancy. 'Premium' is defined as 'any fine, sum or consideration, other than the rent, and includes any service or administration fee or charge'.

adamibrahimt

Payment is for a whole months rent

dimbo61

https://www.mygov.scot/letting-agent-registration-landlords

Contact the Letting agents and ask them which Redress scheme they belong to as you are going to complain and try and get their licence revoked !

The NRLA ( National Residential Landlords Association) charge landlords £24 for a Credit Check. 

MaryNB

adamibrahimt said:

Payment is for a whole months rent

You should read the following link in full and contact Shelter Scotland for help. 

Rent in advance - Private rented sector

Rent may be paid in advance, subject to the following rules: 

• The landlord cannot demand rent before the start of the rental period for which it is due.

......

...it is lawful for a landlord to charge a month/week's rent in advance at the start of a tenancy, but only once the lease has commenced.