Holding Deposit and Reference Query

PierremontQuaker03

Hi, I am helping my tenants move property as I am selling my house (mortgage deal has came to an end so I thought I would sell). The housing market is crazy where I live, rental properties are being snapped up quickly. Anyway, spoke to my tenant and he has paid a holding deposit on a house today and he is filling in forms (I have filled in a reference for him). My question is, does this mean subject to satisfactory affordability, references etc the property should be his? Or is it common practice for letting agents to say do this for 3 people before for the final choice is made - and then refund the holding deposit to the other two that don't get the house? Many thanks

MaryNB

Under the Tenant Fees Act 2019 only one holding deposit can be accepted for a single property. Any additional holding deposits taken would be considered prohibited payments under the Act. 

If a tenant fails referencing they will get the holding deposit back, provided they supplied correct information. If they pass referencing it's likely they'll get the property but until they sign a tenancy agreement or pay rent and move in they're not guaranteed the property. Until then a landlord can still decide not to proceed with giving the tenant the property but they will have to return the holding deposit.

canaldumidi

You're a landlord right?

So you are familiar with tenancy law including the Tenant Fees Act 2019?

PierremontQuaker03

canaldumidi said:

You're a landlord right?

So you are familiar with tenancy law including the Tenant Fees Act 2019?

I'm asking a question - you do not need to go all high and mighty on me. 

MaryNB

PierremontQuaker03 said:

canaldumidi said:

You're a landlord right?

So you are familiar with tenancy law including the Tenant Fees Act 2019?

I'm asking a question - you do not need to go all high and mighty on me. 

To be fair it is quite concerning that you are a landlord who is unfamiliar with major legislation from three years ago. It is your responsibility as a landlord to be familiar with it, there are penalties for breaching it and it's very unfair to tenants as your unfamiliarity with the Act runs the risk of them incurring prohibited charges.