Hi All,
We have recently decided to let out our property and have chosen {name removed} as to manage the property as we won't be in the area.
We (they) found some tenants, started/finished referencing, and then 3 weeks in (about 1.5 weeks from move-in date) the tenants decided to pull out. There was a 1 week rent holding deposit paid to the agent by the potential tenants, since they pulled out, it was kept, and I assumed it would be passed to me as I will now be out on at least a few weeks of rent while I look for new tenants (I've been doing the viewings etc)
When I asked {name removed} what happens to this holding deposit, they've come back with "it's been given straight to our referencing partner, hence we do not have it to give to you" - Which doesn't make sense to me as obviously this is initially taken to protect/cover the landlord from exactly this type of situation. I'll also note that their new tenant find fee is 150 GBP, which I assume would cover the referencing etc. Why would they(or this 'referencing partner') get to keep the 1 week's of rent (which is 400 GBP!)
Is this the norm? Do agents normally keep this holding deposit, or is it in most cases passed to the landlord as would be expected? (as it's also a legal thing?)
I've asked for further explanation from them as I'm genuinely confused and am waiting for a further reply but wanted to get the general thoughts on this.
We have recently decided to let out our property and have chosen {name removed} as to manage the property as we won't be in the area.
We (they) found some tenants, started/finished referencing, and then 3 weeks in (about 1.5 weeks from move-in date) the tenants decided to pull out. There was a 1 week rent holding deposit paid to the agent by the potential tenants, since they pulled out, it was kept, and I assumed it would be passed to me as I will now be out on at least a few weeks of rent while I look for new tenants (I've been doing the viewings etc)
When I asked {name removed} what happens to this holding deposit, they've come back with "it's been given straight to our referencing partner, hence we do not have it to give to you" - Which doesn't make sense to me as obviously this is initially taken to protect/cover the landlord from exactly this type of situation. I'll also note that their new tenant find fee is 150 GBP, which I assume would cover the referencing etc. Why would they(or this 'referencing partner') get to keep the 1 week's of rent (which is 400 GBP!)
Is this the norm? Do agents normally keep this holding deposit, or is it in most cases passed to the landlord as would be expected? (as it's also a legal thing?)
I've asked for further explanation from them as I'm genuinely confused and am waiting for a further reply but wanted to get the general thoughts on this.
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