Holding Deposit - same tenants new application

Landlord Discussion
1

Hi all,

I have 3 tenants apply for a property, they placed a holding deposit of £461. They all failed referencing ordered on openrent largely because they didnt understand the process all are legal migrants.

Nevertheless in the end they changed their mind about the property as a result I retained £260. £60 cost of referencing an £200 as the property was off the market for about a week I then returned £201.

2 weeks later the tenants have changed their mind again and want the property again, from their payslips and bank statements etc I know they will pass their referencing which they now have done and will do and will meet affordability requirements.

However I am now in confusion as to how to proceed as they are genuinely nice people and fit my criterias, I just want to make sure that I dont get caught up under any banned tenant fees later down the line.

The application made 2 weeks later is a new application albeit for the same property. However we are recycling the old references as we can open and update where errors have been made.

What would be the best way to proceed?

2

I am no expert although thinking logically, I would assume it is the same listed property and the prospective tenants are making a second application so the process starts again with them submitting another holding deposit and you referencing the tenants again. If unsure by setting up the tenancy using the Rent Now service may give you some peace of mind.

3

I think that if you were correct to keep part of the deposit in the first place, (ie followed all the rules and made sure the tenant understood the circumstances under which you might retain it), then you would be ok to keep it now. However, if you’re in any doubt or you think these applicants deserve a break, the put it toward the first months rent or security deposit.