Prospective tenant paid holding deposit and deposit, then decided not to move in. The holding deposit was paid weeks ago and the deposit was paid on the 8th June.
I am not sure what to do now. Both deposits are with OpenRent. I am not sure how to proceed. Should I arrange for the deposit to be returned. Am I entitled to anything as it means I will certainly be out of pocket of a month’s rent or more. How should this be done. I need to re-advertise as quickly as possible. Any advice would be much appreciated. I cannot get any useful support from OpenRent.
@Rob32 so holding deposit (1week rent) and security deposit (5 weeks?) paid but balance of 1st month rent not paid?
When was tenancy due to start/ tenants due to move in?
Did they sign the tenancy agreement?
Formally they probably have to serve notice telling you the date they want the tenancy to end, otherwise it continues unless mutually ended by you and tenant. Check your tenancy agreement.
If not specified in the contract they have to give you notice of 2 months plus the days needed so it ends at the end of a rental period.
You could agree to end the tenancy with tenants from an earlier date (say end of 1st month).and then claim back any rent arrears up to that date from the security deposit.
If you agree to end the tenancy before 1st month starts the deposits will both get returned to tenants unless you make any claim on them. Think maybe you can claim the holding deposit amount as they have effectively withdrawn their application. Ask the deposit scheme
Good luck
If they haven’t signed a cotrract, you return the security deposit and keep the holding deposit giving them a full explanation of why. Anything else would be illegal.
If the have signed a contract you are entitled to compensation for your loss, which you need to mitigate by finding a replacement tenant asap. You can make a claim to the deposit scheme, (if youve protected it) for your losses, which would be rent and re-advertising costs until a new tenant moves in. They may refuse the claim and you would then need to sue the tenant in the small claims court.
If you havent yet protected the security deposit, then I think you have to return it and sue them, but you can check this with a specialist landlord and tenant solicitor.
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