Hi Open Rent Team,
My prospective tenant put down a holding deposit of £360 and we started the referencing process. However they did not pass referencing. They claim that they have provided necessary documentation to the Open Rent-Referencing team, however, the referencing team says that they have not received those documents. The tenants have also become un-responsive now and looks like they have found another property. Looks like they are waiting for me to cancel the application so that they can get their Holding Deposit back. This is very inconvenient and frustrating for me at this point in time, so would like to keep the holding deposit. How do I secure it?
If I ‘Cancel the application’ then as per OpenRent process, they will get the deposit back. Can I relist now without ending the process ?
I have raised this issue with OpenRent and it has been 4 days now and the issue is still unresolved. I am losing precious time in re-advertising my property.
Greatly appreciate is someone can help me on priority.
I’m not staff but there is a button somewhere “not cooperating”.
However, it seems you already had decided not to let them rent (should have refunded the money!) and only want to keep the money, which isn’t how the system works.
The holding deposit is not for you to keep
Just to clarify, even though the tenants did not pass referencing (due to factors including lack of proper documents) , we have communicated to them that we are willing to go ahead with the tenancy agreement, if they can provide the necessary documentation (with regards to previous tenancy, Bank Statements etc.,) which they claim to have sent to OpenRent. However they have not responded to any of these messages over the last few days.
If you want to retain the holding deposit you have to ride out time for two weeks. anything before that you shall have to return the money.
If you relist before the two weeks you have to return the money
It looks like they want their money back and are waiting for you to give in first
The problem is, if they failed referencing and you require them to provide further docs and they don’t want to… they should get their money back …
If they failed referencing and the landlord is trying to work with them then the landlord is entitled to keep the holding deposit
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If they want to pull out because the landlord doesn’t issue a contract they’re allowed to pull out (albeit it takes 14 days). Once the landlord has decided to use a referencing service it’s unlikely the tribunal will allow the LL to hold the deposit if they request more information.
You have the problem of not knowing whether the tenants have provided the necessary documentation as Open Rent haven’t responded to you.
You would need to prove to a tribunal that you took all reasonable steps to try and sort out the issuing of the Tenancy, so maybe send another nice email to them. If they keep ignoring it should be another point in your favour.
How did it go with this - are you still holding on to it?
To be able to keep the deposit you must’ve outlined to the tenant that you would ask for the documentation you require. No good telling them afterwards.
So even if you wait two weeks and they don’t engage you’d have to refund the money unless you have it in writing that you would take further steps after a failed referencing… And you could be fined.
It’s not worth it for a couple hundred pounds.