A couple viewed my flat and were keen. We agreed a slightyy reduced price just for them as I wanted to keep them. They paid a holding deposit and then I paid for referencing
They asked to start the tenancy a week later than my proposed start date, which I declined a I prefer one tenancy to run straight into the next to avoid gaps and utility/council tax issues
Since I said no they have gone completely silent, They have not started the referencing and are not responding to msg
My property now shows as âletâ all viewings have cancelled and I do not think itâs advertised
My questions
1- Can I retain the holding deposit? (just to cover the hassle and not been on the market)
2- Do I have to pay Openrent again to relist the property as currently shows as âletâ?
3- Is there is a way to recover the referencing fee if they havenât engaged with it?
4-Any other input/ideas/thoughts/advices
Thanks in advance if you can answer any of the questions or all!
Ask OR support or @mod_harry may be able to advise but yes if they dont engage with the referencing then they have effectively withdrawn their application and you would then be able to keep the deposit. But OR will advise how long you have to wait. Iâd also try to speak not msg to find out whatâs happening as OR emails often go to spam, and also to give them a warning about them potentially losing their deposit. There could be all sorts of legit reasons for delay their end, eg illness, family emergency etc]. If you dont have a tel for both of them before signing and are having to msg thatâs not a good start either.
Google âHow will the holding deposit be treated? openrentâ
Once the application is ended [ie tenant withdraws or LL decides not to proceed] then Iâd expect the property goes back on the market
Once youâve paid for referencing dont think it can be recovered
And - if you reduced price for them and the prospect of paying 1 week sooner is enough to put them off, then they maybe have very tight cashflow, will struggle to pay, and you are probably better off with somebody else. Consider it a good outcome
wow⌠a single week? Theyâre moving their entire lives from one home to another so perhaps giving them a weekâs flexibility would help with that. They might have been put off by this inflexibility at their first request.
I never take holding deposits because theyâre more hassle than theyâre worth. This is a case in point.
Thanks for your observation. However, just for your info I have reduced the rent (as I liked them) and I am changing floorings for them as they werenât too keen on the carpets(and me neither) so I am using luxury vinyl (more expensive than carpets and laminated) so not quite sure how this qualificated me as tight My last tenants wanted to leave 2 weeks earlier after they gave me notice as their to be home was ready earlier and I agreed to lose 2 weeks rent to help them out giving them money back and a fulll deposit which prob I shouldnât have
That indicates that you were either going to have a two week void period anyway so whatâs an extra week or that you could have had this couple take up the new tenancy only a week after the last tenants left and only lost a week from a potential two. Either way, Iâm not clear on why you turned down their request for a weekâs delay particularly as youâve now shown you were willing to be flexible in so many other ways and you liked them.
Where in the timeline did you refuse their request? After theyâd paid the deposit and youâd paid referencing?
No, I would not have a void period. They gave me noticed but then told me they were going to leave earlier to a house they just bought, they told me that it was unfair they will be paying for their new house and my rent, so as they were a young couple with a child I told them to leave whenever they wanted to leave and that I would sort it out, that left me with 2 weeks empty place and luckily I was able to find a tenant in time. I guess you learn and I did.. hence now I do not want to be that mega flexible as they are already are getting a reduced rent and new flooring, then what else âŚ
and yes after they paid the deposite, the moving in date was clear in the listing then I repeat it during our conversations, they I got a message from them assuming the could just delay it a week⌠then what else ..??
Does seem odd that youve accommodated them with different flooring and a lower price all of which will cost you more than the rent being delayed a week.
You seem to be punishing the new tenants by being less flexible after regretting being so flexible/generous with the previous ones. And remember the new tenants wont have any idea how nice you were to the previous ones. They more likely assumed that as you lowered the price and changed the flooring you liked them a lot and wouldnt mind moving the start date back again.
Think most LLs would give new tenants 1 week flexibility to keep good new tenants instead of having the hassle.of finding new ones again - unless you literally have loads of good tenants queuing up to fill your place tomorrow. Normally if they pull out then by the time you advertise do viewings do referencing and new ones give notice you are likely to have a month or more void instead.
She reduced and thus took a hit there. To also be asked to have vacancy (when itâs most likely listed in the ad when itâs vacant) is just bad finances.
Itâs better to re-list and get more sustainable tenants who donât want champagne on a beer budget
I always ask tenants BEFORE viewing if the starting date and rent is acceptable to them. If not, no point in viewing.
If they start wanting reductions in rent or delayed start Iâll just tell them no and move on.
I had one tenant a few years ago (single resident) who went through all the viewings, pre-screenings and by the time we got to contracts she wanted a 25% reduction in rent and delayed start by 2 weeks because she was a good tenant who was going to look after the property. After that I learned to add that question before i view the property.
No. Delaying a week, in the grand scheme of things, with rent likely around ÂŁ1000 pcm, is a drop in the ocean. Reducing the rent? Now thatâs bad finances. Thatâs going to sting you for a lot longer than a week.
Anyway, the issue is that theyâre def not moving in now (or at least I wouldnât have them) and she needs to figure out what to do about the holding deposit. Iâd keep it and move on.
And, as Iâve said, I wouldnât take holding deposits because they can really make everything grind to a halt. Thatâs happened here and, again, itâs having a financial impact.
Thanks for your answer! what do you mean with your last sentence? would I have issues if I retain the holding deposit? (to covere all this hasssle, references) I was going to give them half as fair.
Visa and immigration issues? Have you verified their right to rent?
IMO, I wouldnât touch these applicants. Theyâve already messed you around. You should return the holding deposit and let them know simply that you arenât proceeding with their application.
IIWY, I wouldnât take holding deposits nor would I be hasty. Not having a void is good for finances sure, but having a tenant who is a problem is a complete nightmare for your finances, esp with the RRA from May. Iâve always held off until I have an applicant who ticks every single one of my boxes. Can you say that about these guys? If not thenâŚ
You cant get back referencing costs - that would be illegal under Tenancy Fees Act
Unless they withdraw you cant keep any of the holding deposit either
Agree with @tatemono - cut your losses and count yourself lucky you didnt have all these issues with them after youâd handed over keys and were having to evict them
If the referencing via openrent is not proceeded with ie no response from Tenant , then I think you should get an automatic credit back when YOU cancel the referencing via a button on app. Pretty sure this happened to me.
I would refund holding deposit and go with another applicant, who I would first have agreed start date, explained referencing requirements and asked if they think they can provide enough to pass, otherwise if they fail referencing then you are back to square 1, and have spent the reference fees, and a longer voud period likely. I agree 1 weeks delay in start costs less than reduced rent, which caries forward for duration of tenancy. ( Openrent app shows phone no of applicants somewhere, if you ask it for contact info and agree data protection.)
I had a potential tenant that seemed good, but when I started referencing, he starting delaying. I was worried that all my other options would go cold so after a couple of days of warnings, delay and uncertainty, I cancelled his application refunded his holding deposit and moveed onto the next potential tenant.
OpenRent refunded the referencing as he hadnât started it.
The â2nd optionâ tenant completed the referencing within about an hour so all good !
