From today, all new prospective private tenants will have to be provided with information about deposits, rent and landlord/agent contact details before a holding deposit can be taken.
As opposed to a security deposit, which is there to pay for any damage tenants cause to a property, a holding deposit is paid to reserve a property whilst any pre-contract administration is done.
Before a landlord or agent takes a holding deposit from you, they must provide you with the following information:
(a) amount of holding deposit (3),
(b) address of the dwelling in respect of which the deposit is paid,
(c) where a holding deposit is to be paid to a letting agent, the name and contact details of that letting agent,
(d) where a holding deposit is to be paid to a landlord, the name and contact details of that landlord,
(e) duration of the contract,
(f) proposed occupation date,
(g) amount of rent or other consideration,
(h) rental period,
(i) any proposed additional contract terms or proposed modifications to fundamental or supplementary terms or terms proposed to be omitted from the contract,
(j) amount of any security deposit,
(k) whether a guarantor is required and, if so, any relevant conditions,
(l) reference checks the landlord (or letting agent) will undertake, and;
(m) information the landlord or letting agent requires from the prospective contract-holder.
Further to this, the regulations state that: “The information must be provided to a prospective contract-holder in writing and may be given in person or provided by electronic means if the prospective contract-holder consents to receiving it electronically.”
The aim of these regulations is to help tenants feel more secure, and make sure that you are aware of all processes or charges necessary before starting to rent a property.
If you would like more information on these regulations, please contact us at [email protected]
If you feel that your agent or landlord is not providing the information required by these regulations, contact the excellent teams at Shelter Cymru or Citizen’s Advice.