Delayed deposit?

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    Delayed deposit?

    Hi - I am a new landlord and find myself in the following situation. I wonder if anyone has been in a similar situation, and can kindly provide some guidance.

    I am using OpenRent and have found good applicants (with guarantor) who have viewed, and are both currently being referenced (after reading bad reviews for RentGuard's referencing, I opted instead to use the National Landlord's Association's tenant check service).

    My applicants are awaiting an inheritance payout expected in May, at which time they'd be able to pay both the deposit + first months rent. Ideally that's a later moving in date than I'd like, and I am wondering if it would be possible for them to move in at the beginning of April, and defer the payment of their deposit to the following month (which would need to be stipulated in the AST).

    My thinking is that providing the reference is favourable (with long history of no missed rental payments), and the guarantor sound - that I needn't worry too much about whether the deposit is paid upon moving in vs paid a month later.

    OpenRent do not allow the above, and insist upon deposit + first month's rent immediately. So my plan is to use a 3rd party to draft the AST (suggestions welcome) and finish setting up the tenancy off the platform.

    Am I being naive in considering taking deposit after move-in?

    Any advice would be greatly appreciated. Cheers!

    #2
    Nooooooooooooooooooooooooooooooooooooooooooooooooo ooooooo!

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      #3
      As above -- DEFINITELY DO NOT TAKE THIS TENANT. The Guarantor is not going to help one little bit either.

      It is not just that you are "being naive in considering taking deposit after move-in" - you are being totally idiotically naive altogether (sorry about the language -- no personal insult intended -- but sometimes a hard slap is required)

      You can reconsider once they have received the inheritance and show you the official probate (original copy), and originals of their bank accounts, and have paid the deposit and first month of rent in full

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        #4
        Awaiting inheritance eh? No, walk away.
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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          #5
          I agree you shouldn't go ahead with these tenants. You can download the ast openrent use from their website.

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            #6
            we dont take deposits at all, and we are not on our own, we prefer instead to charge a higher rent of around £10-15 per month, we have been doing this on 6 properties for around 4 years now, do the math and see if it would work for you? we dont just take anyone though, we have a fairly vigorous 'sift' including visiting prospective tenants in their current property. we do it all ourselves and dont use agents,

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              #7
              Originally posted by MisterB View Post
              we dont take deposits at all, and we are not on our own, we prefer instead to charge a higher rent of around £10-15 per month, we have been doing this on 6 properties for around 4 years now, do the math and see if it would work for you? we dont just take anyone though, we have a fairly vigorous 'sift' including visiting prospective tenants in their current property. we do it all ourselves and dont use agents,
              Nothing wrong with not taking a deposit, though not sure that a tenner a month would offset risk (maybe £50 to £100).
              But doesn't change the position here - anyone without sufficient free capital to be able to pay the deposit several times over (whether paid or not) is extremely high risk under current legislation.

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                #8
                Thanks for all your responses everyone, lots of interesting viewpoints and a pretty clear consensus.

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