Tenant unable to pay 1st month rent + deposit - Can we cancel tenancy agreement and keep holding deposit?

Landlord Discussion Legal
1

Our prospective tenant just informed us that they are have issues transfering funds from a foreign bank account to the UK to pay for their first month rent + deposit, but we have already issued the tenancy agreement, pending signature.

My questions:

  • How do we cancel the tenancy agreement?
  • Do we have the rights to keep the holding deposit?
  • How do we relist the property whilst we’re waiting to see if we get to keep the holding deposit?

We feel very frustrated as the tenant is new to the country so we tried our best to help the out. With lack of credit history, failed their credit check but got an guarantor service; they have a brand new job in the UK but their HR refuse to go through the OpenRent reference process and insisted on emailing us an employment verification pdf; and now they tell us they don’t have the money to pay.

They have wasted a week of our time and energy!

2

Never had to cancel at this stage, but feel sure there will be a ‘cancel options’ guidelines if you view the tenancy on the OR portal. Have you checked?

3

Just had a check online & appears I was right … *“To cancel an OpenRent tenancy after issuing the contract but before it’s signed, you’ll need to cancel the “Rent Now” process through your OpenRent account. You can do this by selecting the relevant tenancy, finding the “cancel options,” and then selecting the option to end the Rent Now process.”

Re the holding deposit, I’m sure it’ll ask you why you are cancelling & provide guideance on this.

4

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