Tenant Fees Act and Holding Deposit Stuff

The tenant fees act is making everything a lot more difficult.  Take the previously simple task of taking a holding deposit.

• It is now an offence to take a penny more than one week’s rent
• Once taken, the deposit can only be retained for 15 days unless otherwise agreed in writing by both parties, and
• There are strict rules as to when it can be retained and when it must be returned to the applicant.

So there is plenty of scope for the careless landlord or agent to get things wrong – and land themselves in trouble.  Or maybe find themselves facing a penalty charge notice.

The Landlord Law Holding Deposit Documents

The best way to avoid making mistakes is to have documentation which prompts you to do all the right things.

So for Landlord Law members we now have the holding deposit documentation.  This consists of

• A combined receipt and agreement form – which sets out all the circumstances under which the deposit can be retained or refunded and provides for an extension of the 15 days if this is needed, and
• Three letters – one refunding the deposit to an unsuccessful application, one notifying the unsuccessful applicant that his deposit has been forfeit, and one telling an applicant who has pulled out that his deposit has been forfeit

This along with our FAQ on holding deposits should help landlords and their agents keep within the rules.

Landlord Law members will find the holding deposit documents here.  We have also updated the New Tenant Checklist.