The Holding Deposit
Be prepared for a request for a
holding deposit if you do like and want a property (so long as you’re satisfied that all your questions have been answered. If not, hold onto your money until they have been). Holding deposits are a sum of money (usually about a week’s rent) that tenants hand over fairly soon after viewings to prove good intent – in other words, that they seriously want to rent a unit. This money may be used to fund references/credit checks – or it may not. This is something that you need to pin down. Find out exactly what you’re paying out for. It’s amazing, for example, just how much of this can disappear in costs when using agents with multiple reference charges.
Get A Receipt
Make sure you ask for receipts for all holding deposits and indeed for full rental deposits too. These receipts should state exactly what the money is for, what costs you agree to be deducted from it and what circumstances will trigger a full refund.
Then keep them safe.Don’t imagine that, having agreed to take a property and having handed over a holding deposit, your brand new prospective landlord won’t continue showing it to other potential tenants. Similarly, most agencies will continue viewings until all the references you have provided are found to be acceptable. The paperwork required to establish tenancies isn’t instantaneous and most landlords/agents will
hedge their bets until a much closer contractual stage has been reached.
Always remember that until all the necessary leases have been signed, and full monies exchanged,
no contract exists at all.
If Your References Don’t Stack Up
Tenants who have paid part deposits may lose significant sums for referencing and administration if their prospective landlord/agent quite reasonably rejects them because references were poor or credit checks shaky. Keep an eye on your credit history – having a poor one can be an expensive mistake for prospective tenants.
If, however, you have paid a holding or full deposit out and you still want the property, then a private landlord/agent subsequently lets to someone else whom they simply
prefer, you should expect a full refund.
Getting Your Ducks In A Row
When you
really want a particular property, you need to ensure that the paperwork required by your landlord/agent is quickly made available, and that you have the money required ready and waiting. Do not expect anyone to hold a property for you for days or weeks, while you sort yourself out. It simply won’t happen.
Learn How To Say ‘no’
If, on the other hand you don’t want a unit, say so. It’s quite amazing how many tenants are too embarrassed to say ‘no thank you’ to landlords and agents. If you definitely don’t want it, say so. If you’re undecided, say so. Landlords and agents are quite used to hearing ‘No thanks, this one’s not for me.’
How To Start Looking
Learning how to choose a good rental involves quite a bit of thinking on your feet. If you are lucky enough to be able to visit the area and look at the properties from the outside before you have your viewing, so much the better. This is often an excellent way of screening out
those properties you simply don’t want before you go inside. However, if your viewing is the first opportunity you have to look at the property, look around carefully.
- Does it look neglected?
- Is it in noticeably worse condition than its neighbours?
- Is the area worse than the flat you saw yesterday for much the same rent?
If you are about to pay average or above average rent for the area, and the answer to these questions is yes, then decline, and move on to your next viewing. However, if you are struggling to find something that you can afford, you’ll probably have less choice. Unless shocked, continue your inspection – you’re now looking for basic safety – gas safety certificates, fire resistant labels on sofas – safety is the one thing that no tenant should economise on – but that doesn’t stop unsafe buildings being commonplace. There are very heavy fines for landlords/agents caught letting out property with dangerous facilities.
Remember that landlords/agents willing to take such serious financial risks are unlikely to make reliable parties to much else in a contract. The poisonous relationship of bad landlord working in conjunction with some less scrupulous agents often works in tandem to keep poor property circulating on the rental market. This type of deliberate flouting costs lives every year.