Holding Deposit Issue

To:Experienced Landlords

Hi,

Please in the event that a prospective tenant fails a reference check, what would become of the the holding deposit if the landlord decides as a result of the failed reference.

Would it be refunded fully back to the tenant?

Thanks…

In order to keep the holding deposit, it must have been made clear to the applicant before taking it, the conditions under which it could be retained by the landlord. This usually means some sort of signed holding deposit agreement. If Openrent have handled the holding deposit then you would need to check with them whether the conditions were explained to the tenant as part of their prrocess.

It would also depend on the reason they failed referencing. It would have to be for something they lied about to you before referencing, such as not having ccj’s. You would need evidence, so normally this means they lied in writing on some sort of application form.

You would also need to comply with the other requirements, such as not holding it for more than 15 days or other pre-agreed period.

Many thanks David122

hold the deposit yourself, and then you get to keep if the tenant fibs. Give it to anyone else and you have lost control.

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