Looking for some advice and to double check. I understand under the Tenant Fees Act, there are only four grounds upon which a holding deposit can be retained by the letting agent or landlord.
These are:
If the tenant fails a Right to Rent check
If the tenant provides false or misleading information
If the tenant pulls out of the application process before the deadline for the agreement (15 calendar days after the holding deposit was taken to when the contract is signed and dated by both parties)
If the tenant fails to take all reasonable steps to enter the tenancy agreement
My situation, i paid a holding deposit for a rental property to an agency (day 1), went through referencing checks, met the landlord, provided my wish to move in but due to personal circumstances, i have pulled out last minute (day 20). No tenancy agreements have been signed yet.
The agency are only willing to refund 50% of the holding deposit of 400gbp for admin purposes.
Is this in their legal right to do so even though i showed reasonable steps along the way to wish to enter into a tenancy agreement + post 15 days when no contract has been signed between myself and the landlord.
Theyre not allowed to make deductions. However, you should check what date was inserted as the deadline for agreement. 15 days is the default, but it can by varied by mutual consent.
Thanks. There was no pre agreement or anything stated to me or within their terms and conditions of this agreement. Reading online is extremely varied on opinion if myself the prospective tenant pulls out, rather than the landlord.
I would ask the agent to tell you the legal basis of their 50% claim and inform them that unless they can justify this independently from legislation, you’ll write an official complaint and then escalate this to their redress scheme.
Surely, if the tenant has pulled out, they have not made all reasonable steps to enter into the tenancy, and the landlord is entitled to keep the holding deposit?
Even Shelter says:
"The landlord or agent might keep your holding deposit if you:
Cath2
I read it the same as you. The tenant pulls out 20 days after placing the holding deposit. Regardless of how genuine the reason, the landlord has lost his referencing fee and lost 20 days of marketing which could also create or extend a void period. I would have thought the LL/agent would be entitled to take the whole amount, not just 50%.
that’s exactly why I asked the agent to justify the 50%. Surely they should take it all. Should be a simple matter for the agent to justify that and this applicant then say, fair enough, and pay it.
I note that the OP says no agreements were signed and this is prob the basis of their query as the wording of the Act says “deadline for the agreement” and this was exceeded. If it was exceeded because the LL didn’t get their act together, then there may be room for negotiation, no?
My response was on the basis that the 15 day default deadline for agreement had been exceeded and the landlord can no longer retain the holding deposit.