1 Week Holding Money Query

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    1 Week Holding Money Query

    Hi All

    OK so up until 1st June I have always taken a decent sized holding amount of £300-400 for a typical property. This means that I only attract tenants who have the means to proceed when the balance of monies are due. i.e. It is too much to lose. In past years I found that saving properties on receipt of small holding amounts dramatically increases the chances of backing out as they only lose a small amount, whereas I could lose a whole months rent if I have to re-market and start from scratch.

    Things are now different, and as bad luck would have it I have just had my first back-out on a property of £625 PCM that I took £144 holding amount on 15th June to commence today. The trouble is, that level of holding money simply is not enough to be confident they will proceed....it is almost a throw away amount. The net effect here is that I will lose at least £625 (minus holding amount) as it will now not be let until august.

    I wondered what others are doing about this? I know we can only take a weeks holding money, but has anyone found a better way of doing this? Because it;s going to be a bloody nightmare moving forwards :-(




    #2
    Originally posted by jghomer View Post

    I wondered what others are doing about this?
    I'm not taking holding deposits.
    Just a month's rent in advance and deposit on granting the tenancy.

    Comment


      #3
      My tenants usually move-in within a week or two of us ageeing the let so its rarely a problem.

      Comment


        #4
        Originally posted by boletus View Post

        I'm not taking holding deposits.
        Just a month's rent in advance and deposit on granting the tenancy.
        Hi boletus

        I presume this leaves you in the same situation as me though doesn't it?

        If someone decides not to proceed you would have to refund the months rent minus the equivalent of 1 weeks rent for the holding amount?

        Comment


          #5
          Originally posted by jghomer View Post

          Hi boletus

          I presume this leaves you in the same situation as me though doesn't it?
          Not quite, they'd have had to stump up about £1300 in your scenario, which shows a lot more commitment. They are unlikely to be laying that amount around on multiple properties. Plus then they'd have to go through the potential hassle of suing/countersuing and inevitable time delays.

          If someone decides not to proceed you would have to refund the months rent minus the equivalent of 1 weeks rent for the holding amount?
          Not sure about that. 1 week is just a default amount, not a maximum or minimum. The guidance says "You should be able to provide evidence of your costs to demonstrate that they are reasonable". If a landlord can prove losses of more than that, can't see why they can't claim for more.

          - Doubt I'd bother personally unless they were particularly obnoxious. Good riddance to bad rubbish and try and improve my timewaster radar for the future would be my philosophy.

          Comment

          Latest Activity

          Collapse

          Working...
          X