desreb Posted July 30, 2012 Share Posted July 30, 2012 Hi all, Given the crazy nature of the NSW Rental market, the last time we applied, it was common practice to apply for more than one property, so that you should get at least one. If you got more than one, then you simply went with your preferred choice. We just did a 1form-based application (service used by some agents) the other day, and in the T&Cs, it seemed to state that we were committing to a minimum one-week holding fee, for the weekly rent price. If we were successful in applying, then they would hold the property for that week. If we accepted, it would become our first week's rent. If we declined, then the holding fee would be forfeit as a deposit and we would lose the entire week's payment. This didn't come up before - there WAS a holding deposit, but it was an option you could take if you wanted to explore your options, just to keep the agent/landlord sweet. The wording in this case seemed to be more of a 'forfeitable deposit', than an option you can take at the time. Since it was present in the form, there was no option to not offer this. Some relevant websites state: Holding Fee – a holding deposit of one week’s rent can only be charged once the tenant's application has been approved. Once a holding fee has been accepted, the landlord must hold the property for at least 7 days and not offer it to anyone else. If the tenant withdraws their application they will lose the entire holding deposit as opposed to forfeiting a portion of it under the old ‘reservation system’. Once a landlord has accepted a holding fee; they are obliged to enter into a lease with the tenant. Does anyone have any observations on this? I read the T&Cs of the form at the end carefully, and it was mostly focused on submitting true and correct details... there was no sentence saying "BY SIGNING YOU ARE AWARE THAT YOU ARE COMMITTING TO THE MINIMUM EXPENDITURE OF THE HOLDING DEPOSIT" etc. etc., as is often the case when you sign a contract. There was also no means testing and no payment/bank details submitted, so nothing they could actually take a payment from. They would have to pursue this after the fact. There WAS a representation of a handwriting-scripty-style signature formed from our printed names, implying that we were signing something. We're hopefully about to receive 2 acceptances, so it would be great to know where we stand, if they both ask for a holding deposit.... Thanks! Damian Link to comment Share on other sites More sharing options...
calNgary Posted July 30, 2012 Share Posted July 30, 2012 Ive heard of it once in QLD ,so its not that common up this way. You basically pay a weeks rent when you apply and if you are succesful but turn the property down ,you lose the money. Maybe check if all agents near you require this fee as from my experience in QLD not many do and i certainly wouldnt opt for one where i had to pay this unless i was desperate if i had the choice. Hope you can find out more Cal x Link to comment Share on other sites More sharing options...
LA Clipper Posted July 30, 2012 Share Posted July 30, 2012 I really hope this isn't standard practice. We're going to view around 10 places on our short-list in the next few days, and given what I've heard about how competitive the market is - we'd be looking to apply for more than one to try and guarantee we get a place we really want. I guess it's about trying to strike up a good rapport with the real estate agent, and hope they can guide you through with sound advice. (Here's hoping/praying.) Link to comment Share on other sites More sharing options...
Paul B Posted July 30, 2012 Share Posted July 30, 2012 I have been aproved and put a holding deposit down, with the market so competitive i probably would have put a few down to cover myself, i just get the feeling that you are doing them a favour and everything is against you. I had a call today to come in and sign the lease so will do straight away and secure everything and lessen the risks. Link to comment Share on other sites More sharing options...
3FatCats Posted July 30, 2012 Share Posted July 30, 2012 I have only had to give the 1 week deposit once my application had been approved, and so it never came up that we might lose it. On both houses we have rented, a deposit was never asked for at the time of application. I suppose some agencies are more difficult than others? Where abouts are you looking to rent? Link to comment Share on other sites More sharing options...
desreb Posted September 3, 2012 Author Share Posted September 3, 2012 Thanks! We were looking in Eastern Suburbs, so not competitive at all! ;-) In the end we made an offer on a 3rd place after the first two fell through, and got it accepted pretty quick, so we didn't end up in this situation. I'll have to find the definitive answer sometime. D Link to comment Share on other sites More sharing options...
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