If I have 3 x interested parties who want to place a holding deposit can this be done until referencing is complete and I see which is suitable, obviously refund two?
Thanks
no that would be illegal, under Tenancy Fees Act 2019 you can only take one holding deposit at a time.
Think about it - the ‘holding’ deposit means you are ‘holding’ the property by taking it off the market and not showing to others. So you can’t do it multiple times simultaneously. Gov guidance below
Suggest you consider getting LL training as this is pretty basic stuff
Best
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The Rules on Holding Deposits
Under the Tenant Fees Act 2019 statutory guidance, specific rules govern how holding payments work:
- One at a time: A landlord or agent must not receive additional holding deposits for the same property while an existing one is held or has not been repaid. [1]
(From the detailed guidance doc
“A landlord or letting agent must not receive additional holding deposits for the same property. This would not apply if the first holding deposit has been repaid unless the earlier deposit was lawfully retained under schedule 2. This is intended to prevent landlords or letting agents taking multiple holding deposits for one property at the same time from different prospective tenants.”
)
I never take a holding deposit until I have references. The references can take a long time, all sorts of things can go wrong at the reference stage, references are cheap, I don’t think it’s good to take it off the market.
Also check they aren’t hopeless informally - just ask them what sort of evidence they can provide of future incomes equivalent to 3.5x rent. All sorts of things can come out of the woodwork in reply.
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@Howard1 good points
@Dee12 better to ask some screening questions first as @Howard1 say, decide which one you prefer and just reference those - why waste on referencing all 3
Def get them to confirm gross income and sources and whom will be included in the tenancy (how many tenants, chikdren), that they have no pets. Get them to supply 6m or 12m bank statements. Get them to tell you if they have a guarantor (who would also need referencing)
Be clear to tell them thorough referencing will need to check affordability including open banking access checks, ID, employment/sources of income, previous LL, credit checks, criminal and asb history, debts, CCJs.
Make sure they have given you a clear explanation of why they are moving.
Make sure you ask them if there is anything you should know before the referencing as if they miss anything out and anything is a surprise you will not consider renting to them and they will have wasted their time and yours. This may put off some of the scammers or liars.
If you have any doubts at all, find someone else
Good luck
Thank you all.. I normally use an agent but their service is appalling so trying to do it myself… a bit daunting.
Referencing, open rent would do this but do you do any additional if so, please may I have a link.
Holding deposit, on the website it’s an available option for the enquirer to do… I dont have control have I?
Thanks Dee
Just dont accept and tell any prospective tenants if they send a holding deposit without you asking, they will be rejected automatically
-terrible comms on their part
Consider joining a LL association/getting training
Nrla have guidance for new LLs, a compliance checklist, training etc. It-s deductable against rental income
Things OR wont do
Right to rent checks
Fire risk assessments
Smoke and CO alarms
Licensing (hmo or selective licensing schemes)
ICO registration/services notice of how you will use tenants data
Building insurance
PAT testing
Legionellas risk assessments
You also need to sort
Valid epc, eicr, gsr served before tenant moves in (OR should do)
Inspections
Check in /check out Inventories
Transfer utilities to tenant name from move in date, meter readings at check in/checkout
Pro cleaning if you want before check in
Nothing stops you referencing all three at once. It’s the money that’s the problem, not the parallel referencing, so run them together and take a holding deposit only from the one you pick.
Watch the clock when you do. The deadline is the fifteenth day starting from the day the money lands, and if there’s no signed agreement by then you have to repay within seven. Referencing regularly overruns that. You can agree a later date but it has to be in writing, and most people find that out too late.
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