When to request First payment / Deposit

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • When to request First payment / Deposit

    I am drawing up a tenancy agreement now and from the templates I have seen they often suggest a months rent plus the deposit should be paid on signing of the agreement. However I am happy just to request payment of the deposit on signing, and will be happy as long as I receive the first months rent before the tenancy begins. Is this not advisable?

  • #2
    You should ensure that you have cleared funds for the deposit and first month's rent on or before the day they move in. Cleared funds is cash or a cheque that has cleared.

    Never, ever let anyone into your property who does not give you cleared funds before the move in date, as this opens you up to problems.

    By the way, the 2nd month's payment is the most riskiest, because it is the first payment that the tenant is free to pay of his own volition after moving in and if he/she/they are going to cause you payment troubles, this will be the first opportunity that they have to not pay you.

    Comment


    • #3
      There is a slight complication in that the tenant is already in the property. I have purcahsed the property, and the current tenant wanted to stay on, so all works out well. I am serving 2 months notice with a managing agent before doing things myself.

      How does this effect the situation? What would you recommend requesting and when?

      Comment


      • #4
        Originally posted by TWR View Post
        There is a slight complication in that the tenant is already in the property. I have purcahsed the property, and the current tenant wanted to stay on, so all works out well. I am serving 2 months notice with a managing agent before doing things myself.

        How does this effect the situation? What would you recommend requesting and when?
        You're going to have be clearer with your situation please. I can't understand your scenario and the problem you are encountering from your posts so far.

        Comment


        • #5
          Originally posted by TWR View Post
          There is a slight complication in that the tenant is already in the property. I have purcahsed the property, and the current tenant wanted to stay on, so all works out well. I am serving 2 months notice with a managing agent before doing things myself.
          That's a different situation, because the tenancy has already begun - you don't start a new one just because you are a new landlord at the property, even if you are setting up a new agreement with the tenant.

          So presumably the tenant just continues to pay rent on the same schedule as before - not sure what you're asking?

          Comment


          • #6
            Originally posted by SEB View Post
            You're going to have be clearer with your situation please. I can't understand your scenario and the problem you are encountering from your posts so far.
            I purchased a flat as a buy-to-let investment, the previous owner of the flat was also renting out the property. When I purchased the flat the previous tenants wanted to stay on after I became the landlord, which was ideal for me.

            I did not want to use an agent, unlike the previous landlord. Because of a technicality, I had to wait until the sale had completed, take out a new contract with the letting agent, and then serve 2 months notice to cancel the tenancy so I could set up a new agreement between myself and the tenant directly.

            The tenant is now in the 2 month notice period with the letting agent. And their deposit is being held by the letting agent to be returned directly to the tenant at the end of the 2 month period.

            I want to set up a new agreement with the tenants and extend their period another 12 months from when their contract with the letting agent ends. My question is when to request the deposit and first months rent, considering the tenants are already in the property.

            I hope this clears things up for you.

            Comment


            • #7
              This is something I cannot help you with so I shall leave it to others to answer you.

              Comment


              • #8
                Can't you just end your agreement with your letting agent and keep the existing AST running, rather than ending the AST and starting a new one?

                It would seem like a simpler way to do it to me.

                The deposit should be transferrable into a scheme that you have opted for.

                Kind regards,

                John

                Comment


                • #9
                  Surely you need to have your name on the AST as the new LL plus your address? How can you just let the previous agreement run on?

                  Comment


                  • #10
                    You seem very 'green', and for me, alarm bells started ringing at the words "I don't want to use an agent". If you are new to the letting game, for heaven's sake use a managing agent because otherwise you'll be on here every five minutes asking for advise. A quick perusal of the forum will show you that newbie landlords often fall foul of the law, or simply are victims of their own misjudgement. For example, most recently, there seem to be a rash of landlords being threatened with or involved in court proceedings for failing to jump through the right legal hoops with respect to tenancy deposit protection legislation. Just to give you an idea of the stakes involved, the penalty for non-compliance is (amongst other things) a payment to the tenant of a sum equal to 3 times the deposit. And if you decide that you will get your own back on the tenant by evicting them, you'll find that you're unable to do so using s.21 grounds......

                    If you don't like the agents the previous owner was using, then go elsewhere. However, make sure you choose an ARLA or NAEA member because even if they do turn out to be hopeless, at least you'll know that if they are professionally negligent, they carry insurance against that risk.
                    Health Warning


                    I try my best to be accurate, but please bear in mind that some posts are written in a matter of seconds and often cannot be edited later on.

                    All information contained in my posts is given without any assumption of responsibility on my part. This means that if you rely on my advice but it turns out to be wrong and you suffer losses (of any kind) as a result, then you cannot sue me.

                    Comment


                    • #11
                      Originally posted by bagpuss View Post
                      Surely you need to have your name on the AST as the new LL plus your address? How can you just let the previous agreement run on?
                      No. L2 can continue on same Agreement that L1 granted to T.
                      However, L2 must serve on T:
                      a. L1's Letter of Authority;
                      b. Notice under s.3 of LTA 1985; and
                      c. Notice under s.48 of LTA 1987.
                      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                      4. *- Contact info: click on my name (blue-highlight link).

                      Comment


                      • #12
                        Originally posted by jeffrey View Post
                        No. L2 can continue on same Agreement that L1 granted to T.
                        However, L2 must serve on T:
                        a. L1's Letter of Authority;
                        b. Notice under s.3 of LTA 1985; and
                        c. Notice under s.48 of LTA 1987.
                        Ah, I didn't realise that there was a way to do that without producing a new AST. Once again thanks for the extremely useful info Jeffrey.

                        Comment

                        Latest Activity

                        Collapse

                        • Mouldy silicone wear and tear?
                          aciduzzo
                          Tenants are moving out today and i am doing the final inspection later; however, last time i was at the flat i noticed the bathroom was in a poor state.

                          What is the general opinion on black mould that has formed inside bathroom silicone? Is it considered wear and tear? Also, the seal...
                          03-07-2017, 08:07 AM
                        • Reply to Mouldy silicone wear and tear?
                          mystic08
                          You might like to gift your new tenants some Kilrock mould cleaner which is magic in a bottle! Cheapest in the Pound shop or The Range but supermarkets sell it too. Works brilliantly on algae too. Garden pots, patios, headstones etc.
                          22-07-2017, 20:52 PM
                        • Discussion - GDPR and implications on landlords
                          MrShed
                          I've just posted something on GDPR and then wondered whether it had been discussed on here before - a quick search implies its never been mentioned.

                          I thought I would raise a topic to discuss it and the implications on landlords.In effect this is a replacement of the Data Protection Act...
                          20-07-2017, 15:01 PM
                        • Reply to Discussion - GDPR and implications on landlords
                          jjlandlord
                          That's the exemption that allows sending data outside of the EEA, which is the issue discussed.



                          No, because of that very exemption....
                          22-07-2017, 19:19 PM
                        • Referencing question
                          kangoo1
                          A couple wants to rent from me, she is on maternity leave and will not be returning to her previous employment, he is permanently employed and moving due to a job transfer. I have referenced him for the full rent and his guarantor has been successfully referenced.
                          I am going to prepare the ast...
                          22-07-2017, 17:19 PM
                        • Claiming for protected deposit
                          mandm
                          This is an interesting one, got me into a spin.
                          Tenants signed AST but decided to leave after 6 months and 3 days (problem with moving) using the break clause in the AST. I protected the deposit using DPS (Insured) and returned the deposit minus deductions when the moved out.
                          I served the...
                          21-07-2017, 08:00 AM
                        • Reply to Claiming for protected deposit
                          JK0
                          I'll leave it at that. I'm not going to get into one of JPK's interminable arguments.
                          22-07-2017, 16:28 PM
                        • Reply to Discussion - GDPR and implications on landlords
                          jpkeates
                          That's simply one of the Schedule 2 exemptions which, if met, allows a process using personal data at all - all the other principles still apply in parallel (where it can be stored, be not excessive, kept up to date etc).

                          So, while it might be OK because it relates to a contract, there...
                          22-07-2017, 15:22 PM
                        • Excessive estate agent fees
                          Cml241
                          I have a property which I started renting out via an agency. When the contract started, they found new tenants, did the relevant checks etc and charged an upfront fee which equates to approx one month's rent. As one year has almost passed, the agent has approached me asking if I want them to 'renegotiate'...
                          21-07-2017, 16:26 PM
                        • Reply to Excessive estate agent fees
                          mariner
                          A new 12 month fixed term does provide LL & T with extra security but can lead to complications for either if their resp circumstances/legislation change during the new AST.
                          Personally, I would prefer if a orig AST was for a fixed 6 month term, followed by an SPT that required both LL &...
                          22-07-2017, 14:09 PM
                        Working...
                        X