Is it legal to not refund a letting admin fee?

Is it legal to not refund a letting admin fee?

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pingu393

Original Poster:

7,880 posts

206 months

Monday 6th March 2017
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thebraketester said:
Wasnt Foxtons was it?
No, but this is the last company that I will either confirm or deny. I don't want to get into the blame game until there is someone to blame.

When there is, you will be in no doubt who it is smile.

13m

26,440 posts

223 months

Tuesday 7th March 2017
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I have had one today, Romanian couple who paid a holding deposit on a flat but have now changed their minds. I politely declined to return their deposit and this morning I have received this text.

"Keep your fking 300 and buy everything for your funeral and your fking family".

I replied, "Thank you, however you clearly have no idea how expensive funerals are in this country."

Sump

5,484 posts

168 months

Tuesday 7th March 2017
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Sounds like a relatively serious threat tbh. I'd report that personally.

13m

26,440 posts

223 months

Tuesday 7th March 2017
quotequote all
Sump said:
Sounds like a relatively serious threat tbh. I'd report that personally.
I've had worse. But I will pass it on to plod later with copies of their ID. I would bet they have previous. Odd one; their references were good but I was not entirely happy about them.

sealtt

3,091 posts

159 months

Tuesday 7th March 2017
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13m said:
I would like to know the truth of the situation, which the above may well not be.

Tenants sometimes lie or change their minds about renting a property. They rarely then say, "my fault, keep the deposit". It's usually everyone else's fault and they want their money back. The answer "no" usually offends and they start making threats about every sort of retribution they can think of, none of which ever plays out.
To be fair I did pay an agent deposit and reference fees 2 weeks ago to secure and rent a house we agreed a deal on, 2 days ago we drove past and saw a 'sale agreed' sign outside. Turns out the owner found a buyer instead, so isn't going to rent anymore. Hoping to get all my money back, agent is nice so should be fine, but still would not surprise me if some agents tried to keep it.

13m

26,440 posts

223 months

Tuesday 7th March 2017
quotequote all
sealtt said:
13m said:
I would like to know the truth of the situation, which the above may well not be.

Tenants sometimes lie or change their minds about renting a property. They rarely then say, "my fault, keep the deposit". It's usually everyone else's fault and they want their money back. The answer "no" usually offends and they start making threats about every sort of retribution they can think of, none of which ever plays out.
To be fair I did pay an agent deposit and reference fees 2 weeks ago to secure and rent a house we agreed a deal on, 2 days ago we drove past and saw a 'sale agreed' sign outside. Turns out the owner found a buyer instead, so isn't going to rent anymore. Hoping to get all my money back, agent is nice so should be fine, but still would not surprise me if some agents tried to keep it.
You're entitled to it back, providing you represented yourself correctly and were in a position to perform. It was the other party who didn't. Though I say "entitled" there may be situations where you aren't, but I'd be surprised if you didn't get it back.


pingu393

Original Poster:

7,880 posts

206 months

Tuesday 7th March 2017
quotequote all
13m said:
You're entitled to it back, providing you represented yourself correctly and were in a position to perform. It was the other party who didn't. Though I say "entitled" there may be situations where you aren't, but I'd be surprised if you didn't get it back.
I can understand the business's dilemma.

They have got your £300 and they have had expenses. They have had to carry out checks, etc.

They have been let down by their client and it is the client who should give them the money, but they have your money.

They know that they have little chance of getting their money from their client.

Only their integrity will ensure they do the right thing.

singlecoil

33,839 posts

247 months

Tuesday 7th March 2017
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pingu393 said:
Only their integrity will ensure they do the right thing.
And if that isn't enough, a CCJ should do the trick.

13m

26,440 posts

223 months

Tuesday 7th March 2017
quotequote all
pingu393 said:
13m said:
You're entitled to it back, providing you represented yourself correctly and were in a position to perform. It was the other party who didn't. Though I say "entitled" there may be situations where you aren't, but I'd be surprised if you didn't get it back.
I can understand the business's dilemma.

They have got your £300 and they have had expenses. They have had to carry out checks, etc.

They have been let down by their client and it is the client who should give them the money, but they have your money.

They know that they have little chance of getting their money from their client.

Only their integrity will ensure they do the right thing.
I haven't been a letting agent for some years and I am out of touch with the rules. However, I think it would be a brave agent who defended in court not refunding fees taken in respect of a property that did not, to all intents and purposes, exist.

A sensible agent's contract will, I suggest, give them sole letting rights and the opportunity to recover costs from landlords who go freestyle.



13m

26,440 posts

223 months

Tuesday 7th March 2017
quotequote all
13m said:
I have had one today, Romanian couple who paid a holding deposit on a flat but have now changed their minds. I politely declined to return their deposit and this morning I have received this text.

"Keep your fking 300 and buy everything for your funeral and your fking family".

I replied, "Thank you, however you clearly have no idea how expensive funerals are in this country."
I gave plod a call on 101 and asked if they would be so kind as to give the Romanian chap a call for a chat. I got a call back from a female officer only thirty minutes later to say that he been called and duly advised about his conduct. Good service I think.




whistlingdixie

1 posts

75 months

Friday 9th February 2018
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I just had this happen to me.

Went to rent a flat -> viewed it same day of enquiry -> paid admin fee filled out paperwork -> was willing to pay rent advanced & deposit same day -> took remaining paperwork home -> returned two days later with 3 years address history, contact details for all addresses, driving license, passport, payslips, store address, store phone number, employee number -> handed it all over -> got passed on to a referencing agency -> got multiple phone calls over the following 3 weeks asking for more and more -> wanted a phone number for a manager -> got that and sent it over -> wanted a consent form signing for reference checking -> signed -> sent -> wanted 6 months of payslips -> explained I'd only been there for three -> they called the manager directly on the internal number (which is difficult to get to begin with) -> also wanted their email address (got it wrong, multiple times) -> asked me for their email -> I asked manager -> returned email to referencing agency -> got yet another phone call from both the agency & letting agent this morning asking for calls back (the referencing agency asking for >another< email) -> called back -> they'd decided the referencing was taking too long and my application had failed -> £180 vapourised.

It's a kind of arbitrary fee to begin with as they literally set it based purely on the cost of the let (50% of whatever the rent is). There's also no way those 5 - 10 second phone calls constitute £180 worth of work.

The contract says it's none refundable, but it specifically says... "if you fail to disclose information". Which I haven't. I've provided them with literally everything I find / get hold of and far more than any other letting agency has ever asked for, even for more expensive lets.

They flat out refused to refund it, even got the contract out, but skipped the "if you fail to disclose information" part and stuck with "failed". It's failed because the referencing agency has decided they're not getting a response from the store quick enough. But there's not a lot I can do about that without writing my own reference.

I've been to the small claims court once before and know how that works (to claim a refund on a faulty bike I'd bought online), and that there's a decent chance I can obtain a refund on the fee due it saying "if >you< fail to disclose". Not happy about loosing the £180 but it's a toss up between living with it versus the effort of opening a claim. I think it took something like 9 months for the other one to go through.

Vaud

50,741 posts

156 months

Friday 9th February 2018
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Send them a "letter before action" asking for the return of the fee. Nothing to lose and you don't need a solicitor or incur any SCC costs.

Edit: If the contract is as vague as you outline. Post up a copy if you like.

Edited by Vaud on Friday 9th February 14:16