Holding Deposit / Fee - Putting Off Potential T's??

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    Holding Deposit / Fee - Putting Off Potential T's??

    Hi

    I am currently advertising my property through a local estate agent.

    Due to the amount of interest im having the estate agent advised me that he will take a £300 holding deposit when the T signs up. (as my house wont complete until 20th April and he wants to the T to be committed)

    I agree with what he is doing, however, this is scaring potential T off?

    Do you have any exp with holding deposits / fee's. Are there any alternatives??

    Thanks

    #2
    If potential tenants are put off by demands for holding deposits it is because they have heard horror stories about them. You cannot commit the tenant without being committed yourself. If you want to commit the tenant then sign him up and take a "proper" deposit and the first month's rent - though obviously there is an element of risk there for you if you have not completed.

    Comment


      #3
      I always take one - 1 week's rent . Never been a problem. If they have a problem with it they are probably not 100% committed or are financially stretched.

      I always stipulate that the deposit is taken in return for me not showing the property for a given period and that it is only redeemable against 1st month's rent (although that is a whole other thread...)
      Assume I know nothing.

      Comment


        #4
        A holding deposit is exacly that.
        Its only supposed to hold the home for the applicant until such time as references are carried out and upon receipt of those, the landlord can decide if he/she wishes to proceed with that applicant.

        It should always be clearly stated, in written form, what terms the holding deposit is taken on, including the circumstances on how it can be returned and how it would be retained by the LL.

        If you do not explain what the holding deposit money is being taken for etc, applicants can be hesitant or concerned.

        I limit my holding deposits to 2 weeks rent and don't have a problem with genuinely serious applicants.

        Comment

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