Landlords now face having to draw up a lengthy list of ‘specified information’ for prospective tenants before they can legitimately ask them for a holding deposit.
New more draconian rules on Holding Deposits went live today in Wales requiring landlords and letting agents to give tenants far more information about a property and person managing it.
The lengthy list of ‘specified information’ must be supplied to a tenant before a holding deposit can be requested under the Renting Homes (Fees etc.) (Wales) Act 2019.
This is designed to help tenants ‘make an informed choice’ before putting down their money to secure a property.
Landlords frustrated by the new rules have told LandlordZONE that they consider the information to also be a deterrent, designed to put off landlords charging holding deposits in the first place.
Nevertheless, if the information is not supplied correctly then a landlord will not be able to with keep hold of a holding deposit if the tenant decides to pull out from the deal prior before the ‘deadline for agreement’ date.
The long list includes 12 pieces of information that must be included. These are:
- Amount of Holding Deposit.
- The dwelling in respect of which the deposit is paid.
- Name, address, telephone number and any email address of the landlord.
- Nature and duration of the contract.
- Proposed occupation date.
- Amount of rent or other consideration.
- The rental period.
- Any proposed additional contract terms or proposed modifications or exclusions to fundamental or supplementary terms.
- Amount of any Security Deposit.
- Details of whether a guarantor is required and if so, any relevant conditions.
- Reference checks the landlord or letting agent will undertake.
- What the landlord requires from the prospective tenant.
This legislation had originally been expected to go live in December but landlords and letting agents argued successfully to give more time to get ready.