Holding deposit vs security deposit

WhyGoBald

The point is kind of moot now since I decided not to take the place, but I'm wondering if I was over-cautious.

I saw a place I really loved, and the estate agent told me the deposit was one month's rent + €150. Although I thought that excessive, I phoned back later to offer to take the place. However, he said he had to paint the place and put in new electrical fittings and asked me to pay what he now referred to as a holding deposit upfront, and into his bank account.

I thought the switch from "deposit" to "holding deposit", and that the holding deposit was for such a large amount, to be massively dodgy, especially as he isn't on the public register of auctioneers, though he has a good few properties on daft.ie.

Was my instinct right?

Doop

Was the extra 150e the holding deposit?

Wouldnt be too strange to ask for a holding deposit as the agent wont go on and show it to others knowing you have paid a deposit and are serious about taking the place.

If he took your word for it that you'd take it and then when the work is done 2 weeks later you might of found somewhere else.

Wouldn't really expect to pay the full deposit over until you were actually receiving the keys. But it doesn't really sound dodgy.

Circumstances like this I would want a full written receipt preferably received while standing in their office... (so you know exactly where they're based etc).

He's hoping to have the work finished one day and a tenant lined up to move in the next.

Side note, many letting agents (ones who only do lettings and not sales) would not be a member of any professional body. Be nice if they were but thats another discussion!

quaalude

WhyGoBald wrote: »

I saw a place I really loved, and the estate agent told me the deposit was one month's rent + €150.

Was my instinct right?

I have never, ever heard of deposit of one month's rent + €150.
It sounds like a chancer chancing his arm.

If you had decided to take the pace, and had insisted on the normal deposit of one month's rent, I bet he would have relented.

WhyGoBald

Doop wrote: »

Was the extra 150e the holding deposit?

No, the holding deposit was the full amount.

As far as I know he doesn't have an office - the Golden Pages listing for his business seems to be his residential address.

He does sales as well as lettings, which made me question why he wasn't on the list of auctioneers, especially as the other estate agents I've dealt with in the town are.

If you had decided to take the pace, and had insisted on the normal deposit of one month's rent, I bet he would have relented.

True, but only if it were in fact a security deposit. I'd be very reluctant to hand over that amount as a holding deposit unless it were to be offset against the rent or security deposit.

Graces7

When we accepted this house, the agent asked for the owner that we pay the deposit up front to show full intent as the LL was having to do a fair amount of work on the house.( He said there was some painting to do but it emerged that he had to gut bathroom and kitchen and a new door.)

We were happy do do that; too far away to view and too ill.

Then we paid the first month's rent I think just before arriving. It seemed and was right to do that.

djimi

Its also possible that they are sick of being screwed over by people keeping the last months rent as their deposit back and may be taking that into account by asking for more than a months rent as a deposit. Its bound to happen eventually if people insist on not paying their last months rent.

Either way Id have told him where to go. I have no problem paying a holding a deposit but it sure as hell wouldnt be a full months rent, let alone a full month and then some.