More than one prospective tenant

We have narrowed down to 3 potential tenants. We would like to carry out reference checks on each to filter and proceed with one.

Do we need to request holding deposits from each one whilst we carry out the process and then return those we don’t continue with or do we carry out checks first?

No, you can only legally take a holding deposit from one applicant. Its purpose is to reserve the property for them and you can’t reserve a property for 3 different people.

Multiple tenants can place a holding deposit on one property but if you don’t accept one within 3 days they will all be refunded,

So as long as you can do the references within 3 days and make you decision you can then accept the one you prefer.

No, One tenant can put down a holding deposit. Once a tenant has put down a holding deposit the property becomes unavailable.

Hi Per

This is untrue, multiple tenant can place a holding deposit but you can only accept one deposit.

You must be accepting the deposit straight away, and by doing this you are marking the property as let, then no one else can place the holding deposit.

If you don’t accept the deposit and 5 people place a holding deposit you would have 5 holding deposits and then you can choose which one to accept. Once you accept one the other 4 holding deposits will be refunded.

You can only have 1 holding deposit. Rent now will only take 1 and will take property off market while landlord makes a decision, so multiple tenants can’t put down holding deposits on the system.

Whole point of holding deposit is that it secures property for tenant subject to references. If you take multiple deposits then they haven’t secured anything.

If you want to reference multiple tenants don’t take holding deposits.

2 Likes

Stephen,
Please read the following:

It is illegal.to take a holding deposit and still advertise. It is illegal to take several holding deposits. OR does NOT support it and the property is taken off the market immediately once a holding deposit is placed (and not when you have accepted it!)

So, no, you are mistaken.

Per and Richard you are both wrong honestly 100% if 5 tenants place a holding deposit on your property Openrent will allow them to place the holding deposit.

You can only accept 1 holding deposit but the system will let the tenants place a holding deposit and if you don’t accept a deposit within 3 days then the system will refund everyone.

It is illegal to accept more than 1 holding deposit but if 5 tenants after viewing your property all decide to place a holding deposit they will be allowed to do this, you then have a choice which tenant to proceed with and you need to accept 1 of the deposits, as soon as you accept 1 of the deposit the rest who placed a holding deposit will be refunded.

This is 100% true and I would ask if an openrent representative is reading this chat you can correct Richard and Par as they are both wrong.

I will come back to this chat the next time I let a property with a screenshot of multiple holding deposits that have been placed on one property.

I can only accept one of these holding deposit but I have 72 hours to select one or all holding deposits will be refunded back.

I would suggest you both speak to openrent and they will confirm I am 100% correct !!

Richard / Par please read on Openrent’s website:

“The marketing of your listing continues until you actually accept the holding deposit offer, and there’s no cost to either party, so there should be no real downside either to you or the over-eager tenant. In any case, this situation is rare and we always recommend that tenants wait until after they have viewed a property and met the landlord to place a holding deposit”

….so the system does notify you if more than one holding deposit is placed and then you have to make a choice who to go with.

You are not allowed to ask 5 tenants to place a holding deposit but if 4 do this without you asking them to then you can accept the one you choose to go with and the other 4 will be refunded as you have accepted 1 holding deposit.

The key here is you can only accept 1 holding deposit but the system will allow multiple tenants to place a holding deposit but will only give you 72 hours to accept the one you are going to proceed with.

As I said more than one tenant can place a holding deposit but only one can be accepted.

I have had 3 eager tenants place a holding deposit today. Please see the screenshot attached.

I hope this clears this up.