Paying deposit when signing tenancy agreement

ArchThorpe

Hi,
I should be signing a 12 month AST today, which starts on January 4th 2011. I think that it won't get signed by the landlord until tomorrow.

The agent wants me to pay the deposit (6 weeks rent) tomorrow (there are suddenly a number of other potential tenants that are "ready to pounce" apparently). I'm not sure if he expects to get it before or after the landlord signs.

I have not yet paid the holding deposit (£200) because we have only just found the place and basically gone straight to the tenancy agreement - but I believe that he expects me to pay that today (plus £100 each for myself and my wife for admin fees and reference checks).

I've no real concerns about the holding deposit and the admin fees, but would it be normal to pay the deposit a month before the tenancy starts, and should I definitely wait until the LL has signed the agreement.

Also, I think that the agent expects me to sign the agreement today, and the the LL will sign it tomorrow.

I would rather take the agreement away with me, have both myself and my wife sign it tonight, then take it back in personally tomorrow, meet with the LL and get him to sign it and then pay the deposit.

Does that sound reasonable, or am I being over cautious?

Any advice would be appreciated.

lynni_2

That sounds right, paying the first month up front along with the deposit

ArchThorpe

lynni wrote: »

That sounds right, paying the first month up front along with the deposit

OK, he doesn't actually want the first month yet, just the deposit.

The deposit will be £3,000 (the house being £2,000 a month) which he wants paying in cash. Is it normal to pay such a large amount in cash?

I'm just wanting to double check everything, because the agency is not as "professional looking" as I have dealt with in the past (their email is thecompanyname@hotmail.co.uk), when he asked me "how much cash can you bring in today?", it all sounded a little bit strange.

They do have quite a big office in a fairly prominent location, which I think has been there quite a while, so I don't think they are complete fly-by-nighters. But just want to check everything.

lynni_2

ArchThorpe wrote: »

OK, he doesn't actually want the first month yet, just the deposit.

The deposit will be £3,000 (the house being £2,000 a month) which he wants paying in cash. Is it normal to pay such a large amount in cash?

I'm just wanting to double check everything, because the agency is not as "professional looking" as I have dealt with in the past (their email is [EMAIL="thecompanyname@hotmail.co.uk"]thecompanyname@hotmail.co.uk[/EMAIL]), when he asked me "how much cash can you bring in today?", it all sounded a little bit strange.

They do have quite a big office in a fairly prominent location, which I think has been there quite a while, so I don't think they are complete fly-by-nighters. But just want to check everything.

Dont give them anything until you sign the tenancy agreement.

If you are so worried about it though, why not just find another place - through a letting agent

ArchThorpe

lynni wrote: »

Dont give them anything until you sign the tenancy agreement.

If you are so worried about it though, why not just find another place - through a letting agent

Thanks. They are a letting agent, but even though they seem a bit unusual, I don't really have much choice, we need to take this house as it is the only place in the area, not much has come on recently, and I have given notice on our current place, to vacate on Jan 6th.

Still, it doesn't mean I will be handing over money that is not protected.

ArchThorpe

Hmm. I have just looked them up on Companies House. The company was incorporated in May 2008. Their registered office is not the location that I know there office to be (but I suppose they could have more than one - just can't see the other on streetview).

However, it seems that the company is classified as dormant, and they have made an application to have it struck off - there was a first gazette notice filed on the 14th September.

Now, my contract would be with the LL, rather than the agent. But should alarm bells be ringing?

ericonabike

ArchThorpe wrote: »

The deposit will be £3,000 (the house being £2,000 a month) which he wants paying in cash. Is it normal to pay such a large amount in cash?

Yes it is unusual and IMHO hugely unprofessional. Yes you should be worried - seems too much of a gamble to me from what you have discovered for yourself.

BitterAndTwisted

That doesn't sounds right to me at all if you have identified the correct company. Why would a dormant company suddenly start trading if they've made an application to be truck off at Companies House? It's not unusual to have a registered office which is not the trading address, many companies use their accountant's office as their Reg Address, who also perform the Company Secretarial role, so that's not necessarily sinister.

What would I do? First, check on the Land Registry site to double-check who owns the property. Then, take away the tenancy agreement and attempt to contact the landlord direct and arrange to pay all monies over to them, getting a receipt, and not the agent.

bap98189

I've never paid the deposit & rent in advance. I would expect to pay those only on the day you pick up the keys, not a month in advance.

ArchThorpe

BitterAndTwisted wrote: »

That doesn't sounds right to me at all if you have identified the correct company. Why would a dormant company suddenly start trading if they've made an application to be truck off at Companies House? It's not unusual to have a registered office which is not the trading address, many companies use their accountant's office as their Reg Address, who also perform the Company Secretarial role, so that's not necessarily sinister.

I'm pretty sure it's the right company, because the name of the director is the same as the guy I have been dealing with.

They are not an unsubstantial agency, and currently seem to have dozens of properties for sale and for rent.

BitterAndTwisted wrote: »

What would I do? First, check on the Land Registry site to double-check who owns the property. Then, take away the tenancy agreement and attempt to contact the landlord direct and arrange to pay all monies over to them, getting a receipt, and not the agent.

OK, I will do that, thanks. The LL seems on the level, but you never know.

BitterAndTwisted

The agency's limited company could be just about to go down the swannee, hence they're now putting all of the business through this other previously dormant company. I still don't like the sound of handing over so much cash so long before the tenancy starts. Maybe the agent is signing up multiple prospective tenants for the same property or something? This agent isn't called Thom something or other, is it?