HOLDING FUNDS IN MORE DETAIL
Once a landlord has been notified that a tenant wishes to apply for a property, and the landlord is in principle happy to proceed subject to referencing, we will ask the tenant to pay ‘Holding Funds’. The amount will be equivalent to one week’s rent.
The property is not removed from the market until these funds are received.
Once we have your holding funds, current legislation stipulates that the necessary paperwork should be completed within 15 days or such longer period as might be agreed. It is usual for us to agree a longer period with you, as quite often the referencing process and obtaining the relevant safety certificates takes longer than 15 days.
Do not pay any funds if you are still looking at other properties, or are unsure if this property is ‘right’ for you! If you pay the funds and then ‘simply change your mind’ then the holding funds are not refunded and will be retained by our firm. You will lose your money. By the same token, if you pay the funds and then you unreasonably delay in responding to any reasonable request made by our firm, or if it turns out that you have provided us with false or misleading information as part of your tenancy application, or if you fail any of the checks which the Landlord is required to undertake under the Immigration Act 2014, then again your holding funds will not be returned. They will be retained by this firm. If your employer or existing landlord do not respond, and you are unable to verify your work status and income by another means asked for by the referencing agency, then the funds will be retained by this firm.
However, if the Landlord decides not to offer you a tenancy for reasons unconnected with the above then your funds will be refunded within 7 days. Should you be offered, and you accept a tenancy with our Landlord, then your holding funds will be credited to the first months’ rent due under that tenancy.
Where, for whatever reason, your holding fund is neither refunded nor credited against any rental liability, you will be provided with written reasons for this money not being repaid within 7 days.
You will not be asked to pay any fees or charges in connection with your application for a tenancy. However, if your application is successful under our standard Assured Shorthold Tenancy agreement, you will be required to pay certain fees for any breach of that tenancy agreement in line with the Tenant Fees Act 2019. In consideration of us processing your tenant application, you agree to pay those fees to us on request.
It is important that you know your legal rights and accordingly you should feel free to seek independent legal advice before paying any money or signing any paperwork. More information on the fees that can lawfully be charged can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/922900/Tenant_Fees_Act_-_Tenant_Guidance.pdf