Dublin landlords are now asking for non refundable 'holding deposits'
The practice is becoming more and more common in the capital.
Landlords in Dublin are now asking for non-refundable ‘holding deposits’ to help secure leases.
However, the deposits doesn’t necessarily ensure the hopeful tenant will secure the property, it just increases their chances of being chosen.
One renter told The Irish Times that he was contacted by a number of landlords over the summer and was told that he would need to pay a non-refundable deposit of at least €300 to “show I was serious about renting”.
Many landlords would then refer to the renter’s referees to see if they liked them or not. If not, they would not get the lease and would not get their deposit back either.
However, is this practice legal?
“It’s not illegal; it’s very questionable,” said Dublin services manager at Threshold, Stephen Large.
“It’s almost like an entrance fee, and another payment for landlords.
“The market at the moment is a suppliers market, and they try to squeeze every bit they can.
"Unfortunately, people are doing it; people are paying these non-refundable deposits over,” he added.
The holding deposits, unlike official security deposits, are not covered by the Residential Tenancies Act, which means renters have no cover if there is a problem.