Non refundable holding deposit for rental

Lycoge

My sister viewed an apartment for rent. When she expressed interest she was advised that a non refundable €500 holding deposit is required before contracts, which will then form part of the overall security deposit on moving in. €500 non refundable if she was to decide not to take the property and is held as an administrative cost.

I have advised her to phone the company to enquire about her protection of the holding deposit should they decide not to rent her the property. Is this normal now? Or should it sound alarm bells?

intheclouds

Alarm bells.

Sounds like they never rent it out but collect up 500 deposits from as many people as they refuse to rent it to - nice business if you can get it!

Lycoge

My thoughts exactly. Looks to be an established company but I don't like the sound of a non refundable deposit of that amount.

TheDoc

Lycoge wrote: »

My sister viewed an apartment for rent. When she expressed interest she was advised that a non refundable €500 holding deposit is required before contracts, which will then form part of the overall security deposit on moving in. €500 non refundable if she was to decide not to take the property and is held as an administrative cost.

I have advised her to phone the company to enquire about her protection of the holding deposit should they decide not to rent her the property. Is this normal now? Or should it sound alarm bells?

Alarm bells.

Tell your sister to walk away. If this is a "company" I'd be raising a formal complaint with the relevant regulatory authorities.

That has scam written all over it. And if it's a reputable letting agency, goes to show how much of a wild west the rental market has turned into.

Mr. Incognito

I'd be making a complaint here for improper conduct

http://www.psr.ie/website/npsra/npsraweb.nsf/page/publicregister-en