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Holding deposit received but tenant is stalling

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Author Topic: Holding deposit received but tenant is stalling  (Read 135 times)
Newbie
Posts: 2

I like property

« on: May 17, 2021, 02:40:10 PM »

Hi all

I have a slight issue with my flat that I'm letting on open rent

I have received a holding deposit from the prospective tenant about 14days ago, and unfortunately the tenant has had to twice delay the contract signing due to her waiting to exchange contracts on the sale of her property.  I've given her the benefit of the doubt twice however it's beginning to drag put a bit.

I'm just not sure can I still continue to advertise and take viewings whilst I have accepted a holding deposit? Also would it be best to relist and give her back the holding deposit etc

I am still waiting to hear back from her this evening aas she has assured me she will get an update from her solicitor on the potential exchange date.

I'm just wondering does anyone have any advice or has anyone had a similar experience

She would be a decent candidate as passed a thorough referencing very well however there is only so long I could wait. I have yet to give any ultimatums , however I believe I will have to very soon.

Anyway thanks for reading and I'd so so appreciate some advice if at all possible

All the best

Rob
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Hero Member
Posts: 1225

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« Reply #1 on: May 17, 2021, 02:45:20 PM »

I would return the deposit now,and put it back on the market.If she wants it that much she should be prepared to get some bridging finance. 
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« Reply #2 on: May 17, 2021, 03:24:37 PM »

When I've taken a Holding Deposit we've already discussed a tenancy start date... and I'd expect to see both incoming rent and Deposit well before that date approached, thereby making everything real.

I promise you. I thought about this the very first time and I realise that a Tenant could hold on and hold on and hold on... with no real intention of proceeding, but promising you they had... until the point where you, the Landlord, had to pull out of the expected agreement... and return the Holding Deposit... the whole idea is that the Tenant puts it down to secure it... and if they start playing silly buggers they stand to lose it... the timescale cannot be infinite for that, can it?
Hero Member
Posts: 606

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« Reply #3 on: May 17, 2021, 03:49:11 PM »

(Am going to assume you didn't agree in writing a different deadline for agreement, which by default is "fifteenth day of the period beginning with the day on which the landlord or letting agent receives the holding deposit".)

If you have taken "all reasonable steps to enter into a tenancy agreement", and the prospective tenant here fails to do so, then you can keep the holding deposit if there's still no agreement when deadline passes. You'll need to gave them notice in writing within 7 days that that's the reason you're withholding the holding deposit.

Then advertise again.

EDIT: England only.
Newbie
Posts: 2

I like property

« Reply #4 on: May 17, 2021, 04:02:24 PM »

Thanks for all the replies guys, I'll start taking some of those steps now, it's my first time letting my flat so I'm still a bit green and probably have been too accommodating to the prospective tenant.

Fortunately open rent have a deadline function which I will set and if no agreement signed by then I'll get the deposit. Itl be a bit of a relief to get it back on market

Thanks again everyone
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