How many holding deposits have you lost in this way ?
The new Renters Right Act means Landlords are going to be ever more cautious with who they rent to , meaning more thorough and investigative reference checks on anyone who applies for a tenancy. It’s only going to get worse for renters as Landlords continue to sell up and leave the private rental sector, reducing the amount of available property.
I am sure you will get the place you deserve as a first time renter All the best of it
Not true. Deposit can only be kept in the event tenant has provided false info, withdraws or fails right to rent. (Or fails to take reasonable steps to enter into tenancy such as taking too long)
It’s very much a “sellers” market.
What is it you are hiding?
Here’s an idea. Before placing a holding deposit, try communicating with the landlord. If you are aware of any factors in your tenancy and financial history that may be a hurdle, disclose them. A good landlord will likely look on early disclosure favourably. A good landlord will also respond in a timely fashion. This will save you both a lot of time, effort and unnecessary expense. A landlord may even talk to you over the phone. This is an opportunity for both parties to suss out eachother. I use screening questions which are automatically sent out to every enquirer. If you don’t/can’t answer the questions, your enquiry dies right there. I’m not even asking for documents at that stage.
Or, you can continue to invest your time in believing that technology, systems and an ‘at a distance’ approach will serve your needs in the new environment of the RRA. Just saying, using my two decades of experience as a self managing private landlord. Also, depending on what the Chancellor says in the budget on 26/11 that verifies some of the rumours and press leaks, I along with a great many other landlords may well sell up entirely. Then you’ll be dealing with mostly large corporate landlords and every issue you ever have about holding deposits and required documentation to get a tenancy will be just lost in the machine which it appears you favour.
I should add that I’m not a technology Luddite. I have the benefit of experience before and after pretty much everyone had access to computers, mobile phones and the ensuing decline in interpersonal skills that many in the younger generations seem to think is an acceptable normal.
Godspeed.
I have lost two holding deposits. The first time they said my employer’s company was formed too recently. The second time they wanted open banking but the reference agency’s website was buggy and wouldn’t connect to the bank. I have lost almost a grand between them.
It would have been good to admit that you lost 2 deposits right at the start of your post. Thus all would realise why you take this view of holding deposits
I’d say it should have been returned as long as you hadn’t supplied false information. What action have you taken to retrieve the money. ?
If your prospective Landlord uses OpenRent they are using a 3rd party reference service, I suspect very few landlords do referencing themselves. Regardless of which reference agency is used, they will all refer to the same employer (the tenants) and the same bank account (the tenants). Whilst they may use different credit reference agencies, those agencies all refer to the same public information. Personally I do not see any reason to be concerned regarding which credit agency is used whether it be Openrent or not.
The rules are clear regarding the circumstances when a holding deposit can be kept by a landlord and their are many postings to support that the process is very much in the favour of the tenant. I suspect that if there has not been a justifiable reason to keep your deposit on the previous 2 occasions it would and can be returned.
If you are looking to have this current deposit returned on the basis you want the referencing carried out only by one particular referencing service then you are looking at the incorrect justification.
I would suggest you allow the landlord to continue your application using the referencing service of their choice. As long as you have been honest, if your application is declined the law is on your side and any holding deposit will be retained only for lawful reasons.
@Chris17 sorry to hear that and I doubt that’s typical - you’ve obviously been very unlucky for that to happen twice. But that could have happened just as easily if LL had used a lettings agency.
2. I’m not entirely sure you would have had any different result from OR. They may hold the holding deposit but they aren’t keeping it in a deposit scheme nor do they promise to be a legal arbitration
( @mod_harry can you tell us what OR do when LL wants to keep holding deposit and tenant disputes?)
“However, there are some cases in which a landlord might want to cancel the application and claim the holding deposit.
For example, if the landlord has evidence that the tenant(s) have provided false or misleading information or if they have evidence that the tenant(s) do not have the right to rent in the UK (this only applies in England). Landlords may also be able to claim a holding deposit if they have evidence that the tenant(s) have stopped cooperating with the application or have acted unreasonably.”’
“Placing a holding deposit is meant to show that a tenant is serious about renting the property in question, so tenants must make sure only to place one if they definitely want to rent the property! If they pull out after placing it, or if an unreasonable amount of time has passed with no tenant contact, the money will go to the landlord to cover the costs they face by taking their property off the market in order to pursue the application.”
Good luck
Ps “You will get your holding deposit back if Landlord makes unreasonable request” - this is not saying landlord can ask anything and then hang on to the holding deposit, quite the opposite! Try reading it again. I know you feel you’ve been stung twice but hyperbole and outright untruths won’t help you