Advice please - deposits

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  • Advice please - deposits

    Hello
    I am new to this forum, and also new to being a landlord. I have just moved in with my partner and want to rent my property. Thought I'd done lots of research, but finding there is lots i do not know the answer to!!!!
    Most of the prospective tenants who are coming forward still have a month or even two months to serve in their current properties. At what stage is it reasonable to ask for deposits, payment of first months rent etc?
    I have been given an offer for the full rental price by what appears to be a good tenant. But they can not move for one month
    1) I plan to collect a £100 holding deposit - can I keep this if he/she fails to take up the tenancy? I would set out the conditions in wrting.
    2) If they do that up tenancy, I assume would take the balance, minus credit ref costs off of the rent?
    3) At what point is it usual to take the full deposit plus the first months rent? I assume this to be at the signing of the AST, is that correct? Do you normally complet the AST on the day the tenant moves in, or in advance?

    I am aware there are quite strict rules about collecting and returning monies, but also am concerned I will wait a whole month for someone to move in, only for them to tell me the day before they are not. Any help about what is usual, would be great!

  • #2
    Originally posted by manicmother View Post
    Hello
    I am new to this forum, and also new to being a landlord. I have just moved in with my partner and want to rent my property. Thought I'd done lots of research, but finding there is lots i do not know the answer to!!!!
    Most of the prospective tenants who are coming forward still have a month or even two months to serve in their current properties. At what stage is it reasonable to ask for deposits, payment of first months rent etc?
    I have been given an offer for the full rental price by what appears to be a good tenant. But they can not move for one month
    1) I plan to collect a £100 holding deposit - can I keep this if he/she fails to take up the tenancy? I would set out the conditions in writing. You can retain 'reasonable' costs so it's subjective, but you are letting the applicant know in writing before they commit themselves so it should be alright.
    2) If they do take up tenancy, I assume would take the balance, minus credit ref costs off of the rent? Not necessarily, there's nothing wrong in reference charges as agents do it all the time.
    3) At what point is it usual to take the full deposit plus the first months rent? I assume this to be at the signing of the AST, is that correct? Do you normally complet the AST on the day the tenant moves in, or in advance? You should consider cash in the first instance and remember you should put the deposit into the DPS within 14 days of receipt, and if you haven't yet registered with them do it now!

    I am aware there are quite strict rules about collecting and returning monies, but also am concerned I will wait a whole month for someone to move in, only for them to tell me the day before they are not. Any help about what is usual, would be great!
    Waiting a month is very generous, not to say foolhardy, but the quality of tenant is paramount. Only you can decide.
    The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

    Comment


    • #3
      Surely it will take a week or two to get all the proper references in place? Do not be too quick to grab at the first tenant that comes along - far more important to get your checks done and do everything you can to ensure that you get a good tenant. I would rather have a couple of months void than a rubbish tenant in quick!

      You should take a look at some of the posts on this forum which might make you more aware of the risks involved in getting the wrong tenant!

      Good luck!
      Mrs Jones
      I am not an expert - my posts are my opinion and should not be taken as fact!!

      Comment

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