GJMSurrey
06-08-2010, 14:57 PM
Maybe I am naive or out of date but I would really like some opinions on this one. I myself am a landlord (I do my own marketing and letting) and these terms provided to a friend seem far too much one sided with the landlord.
So my friend saw a property to let for £850/month but felt it was worth nearer to £800 based upon similar properties in the area.and kindly asked the letting agent whether the Landlord would perhaps accept £800 ono.
Letting agent said she must fill in the following form and pay £500 by card before they will even approach the Landlord about the £800 offer.
----------------------------------------------------------
CONFIRMATION OF OFFER
Rent offerred £800
Move in date 25/09/2010
Summary of move in monies
Admin fee £200 (references, check in/out, inventory etc)
5 weeks damage deposit £923.08
1 month rent £800
Total £1923.07
Holding deposit paid £500
Outsanding Balance £1423.07
The remainder of the balance will be due on receipt of completed references. Once the offer has been put forward we will require your reference forms to be returned to us completed within 48 hours.
12 months contract with 6 months break clause and 2 months notice
Signed ********* Dated *********
*should you withdraw your application for tenancy or your references prove unsatisafctory an administration charge of £500 will be charged. Should the landlord withdraw for any reason (receipt of inadequate references excluded) then the holding depsout will be refunded in full.
My questions (concerns) are:
(1) The letting agent would not contact the landlord even to get a theoretical okay of the rent offer unless the tenant signs the form and pays the money. She was told not to worry as the money would come back if the landlord rejected it, and that letting agent had to receive the payment otherwise letting agent would do the work for nothing. Isn't it more work for the tenant to fill in the form and pay the money than is is for the letting agents quick phone call? I thought it's the least they could do for their commission.
(2) Although there is no known reason that she would not pass credit checks, surely the £200 should be paid and this check to occur before paying the holding deposit. Otherwise the letting agent could subjectively decide that the references were unsatisfactory and keep the £500 admin charge theyt mention?
(3) Why pay a £500 holding deposit at all if when the rent offer is accepted the tenant must put forward reference forms within 48hours and pay the first months rent and actual damage deposit immediately after reference checks are completed. Surely this would only take a week or so?
(4) Is it right and normal that the tenant has to pay the rent and damage deposit elements a week after putting in the offer even though the "move in" date is requested for 6-8 weeks later? Surely the holding deposit either keeps the property until later or there should not be a holding deposit at all?
(5) There are not tenancy terms, I guess if the AST terms were rejected by the tenant then they lose the holding deposit.
In my mind the process would be:
1) Tenant makes rent offer enquiry
2) Landlord accepts in principle
3) Tenant makes formal offer and pays letting agent reference/admin fees
4) Letting agent conduct reference check
5) If passed tenant pays damage deposit & rent in advance OR holding deposit if paying these later neaer the move in date
I know i'm probably missing something :) I don't get it
So my friend saw a property to let for £850/month but felt it was worth nearer to £800 based upon similar properties in the area.and kindly asked the letting agent whether the Landlord would perhaps accept £800 ono.
Letting agent said she must fill in the following form and pay £500 by card before they will even approach the Landlord about the £800 offer.
----------------------------------------------------------
CONFIRMATION OF OFFER
Rent offerred £800
Move in date 25/09/2010
Summary of move in monies
Admin fee £200 (references, check in/out, inventory etc)
5 weeks damage deposit £923.08
1 month rent £800
Total £1923.07
Holding deposit paid £500
Outsanding Balance £1423.07
The remainder of the balance will be due on receipt of completed references. Once the offer has been put forward we will require your reference forms to be returned to us completed within 48 hours.
12 months contract with 6 months break clause and 2 months notice
Signed ********* Dated *********
*should you withdraw your application for tenancy or your references prove unsatisafctory an administration charge of £500 will be charged. Should the landlord withdraw for any reason (receipt of inadequate references excluded) then the holding depsout will be refunded in full.
My questions (concerns) are:
(1) The letting agent would not contact the landlord even to get a theoretical okay of the rent offer unless the tenant signs the form and pays the money. She was told not to worry as the money would come back if the landlord rejected it, and that letting agent had to receive the payment otherwise letting agent would do the work for nothing. Isn't it more work for the tenant to fill in the form and pay the money than is is for the letting agents quick phone call? I thought it's the least they could do for their commission.
(2) Although there is no known reason that she would not pass credit checks, surely the £200 should be paid and this check to occur before paying the holding deposit. Otherwise the letting agent could subjectively decide that the references were unsatisfactory and keep the £500 admin charge theyt mention?
(3) Why pay a £500 holding deposit at all if when the rent offer is accepted the tenant must put forward reference forms within 48hours and pay the first months rent and actual damage deposit immediately after reference checks are completed. Surely this would only take a week or so?
(4) Is it right and normal that the tenant has to pay the rent and damage deposit elements a week after putting in the offer even though the "move in" date is requested for 6-8 weeks later? Surely the holding deposit either keeps the property until later or there should not be a holding deposit at all?
(5) There are not tenancy terms, I guess if the AST terms were rejected by the tenant then they lose the holding deposit.
In my mind the process would be:
1) Tenant makes rent offer enquiry
2) Landlord accepts in principle
3) Tenant makes formal offer and pays letting agent reference/admin fees
4) Letting agent conduct reference check
5) If passed tenant pays damage deposit & rent in advance OR holding deposit if paying these later neaer the move in date
I know i'm probably missing something :) I don't get it