Getting the Holding Deposit right

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    Getting the Holding Deposit right

    Thought I would share this and invite comments.

    Recently signed up a new Tenant using OpenRent.

    Rent is £112 per week / £485.33 per month


    OpenRent charged the potential Tenant £111 for the one week Holding Deposit.

    £112 weekly Rent = £111 weekly Holding Deposit


    I queried this £1 difference with Openrent as I wanted to ensure all the i were dotted and t were crossed etc as I'd not used them before.


    Their reply was "your monthly rent is £485.33, so multiple by 12 and divide by 52 = £111.999231

    "As you can only charge 1 weeks rent as the Holding Deposit, it has to be £111 ......... £112 would be more than 1 weeks rent and could be challenged later"


    Do you agree with this ?

    #2
    Yes, because £112 a week doesn't really equal £485.33 a month.
    The .33 is rounded down (because the 3 is recurring when you multiply by 12 and divide by 52).

    So when you multiply by 12 again, it doesn't equal £112*12 (£5284.00) it equals £5823.96
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      The holding deposit can't be more than 1 week's rent. It could be as low as £0:01.

      And anyway as 2020 is a leap year, £485:33x12 divided by 366, times 7 gives me £111:38.......

      Was holding deposit specified as just £111 (good) or "£111, being one weeks' rent" (bad..)

      How does the tenancy specify the rent - payable monthly or weekly (this is rather important..)
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        The Advert refers to Monthly Rent with a Holding Deposit of 1 week at £112.

        Then, the OpenRent system takes over and refers to the holding deposit of £111 (it was at that point I queried the amount)

        And the signed AST refers to Monthly Rent without mention to the Holding Deposit, just the (Security) Deposit of £224.

        Guarantor No Guarantors are named in this agreement.
        Occupancy The maximum number of people permitted to occupy the property is 1
        Term A fixed Term of 6 months
        Commencing on and including 01 August 2020
        To and including 31 January 2021
        Rent £485.33, four hundred and eighty-five GBP and thirty-three pence each month, payable in advance on or before the 1st day of each month.
        Deposit £224.00, two hundred and twenty-four GBP

        Comment


          #5
          However you get there, I agree with Openrent that £112 is more than one week's rent.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment

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