Paying rental deposit

TDMum

Hello!

I was wondering if anyone could shed some light please? When paying a deposit for a rental property is there any "rule" as to when it needs to be paid? I was under the impression that it was paid along with the first months rent before collect the keys, however, the estate agent has asked that we pay the remaining balance of the deposit this week when we go in to sign the lease. We won't be starting our tenancy until the 20th July. We have given him £300 already to secure the property and get it taken off the market as it were and thought the further £450 of deposit + 1st months rent would be payable on key collecting day.

We can scrabble together another £300 but can't manage the full £450. I'd rather not pee the estate agent off before we've even moved in if it transpires that we should have had the full deposit before agreeing to take the property.

chanz4

Normaly you pay both when you sign and get the keys, the same day

G_M

As a LL I would :

* take a holding deposit at the point the applicant decides they want the property. I take the property off the market. If the tenant changes their mind, they forfeit the deposit. If the tenancy goes ahead, I deduct the amount from the 1st months rent

* take a fee to cover referencing. Around £30 which it what it costs me

* get the tenancy signed asap as this gives security to both me and the applicant. However, if the property is still occupied(by departing tenant) I will not sign in case the current tenant does not leave as planned

* take the 1st months rent, and security deposit, either on the day the tenancy starts or day(or 2) before. That allows cheque to clear or bank transfer to complete (Cash? Who the hell runs around with £1000 in cash these days?)

* keys handed over day tenancy starts provided rent has cleared.

Other LLs do it differently.

Agents do it VERY differently.

TDMum

Have just called the estate agent and he says he needs the full deposit now to secure the tenancy as the LL's have advertised with a second agent so giving the full deposit and signing the lease ASAP will absolutely secure the property. What a pain in the bum! Ah well, such is life.

Thank you for your replies!

G_M

TDMum wrote: »

Have just called the estate agent and he says he needs the full deposit now to secure the tenancy as the LL's have advertised with a second agent so giving the full deposit and signing the lease ASAP will absolutely secure the property. What a pain in the bum! Ah well, such is life.

Thank you for your replies!

The agent just wants cash in their account.

There is no reason you and the LL (or his agent) cannot sign the tenancy agreement, with whatever future start date you agree on, without any further payment as yet.

The signed TA is a legally biding contract so this will 'secure the property'.

Smith_007

At odds with some of the reply's above......

It would be most unusual for a deposit not to be paid on (or before) the date the contract is signed.

Put simply, once you have signed a binding tenancy agreement, if a landlord/agent then asks you for a deposit, you could simply tell them to go swivel, whist waving your binding contract in their face.


As an aside......
Most of the time, a landlord/agent will not sign a binding tenancy agreement until the day you move in. (You will sign some sort of pre-tenancy agreement before this). This will leave them holding all the cards and able to deny you a tenancy for any reason up until the day you move in...... for example, if the current tenant refuses to leave, or if they get a better offer.

This is just one of the sneaky tricks most agents and many landlords use.


EDIT: What was the £300 'to secure the property' really for and is it returnable? I hope you negotiated them down.

TDMum

The £300 was out of the £750 deposit so it wasn't an extra as such. The property is empty at the moment which is why the LL advertised it with 2 agencies so as to increase viewings. Seemingly the 2nd agency (which the first had no knowledge of until he saw the sign outside the property) are only advertising the property and he still holds the contract (not sure if that's the correct term) to manage the property.

The agent is well known and respected in the area so I don't think he's out to shaft us, but then I suppose you knever know. My husband has an appt tomorrow to pay the remaining deposit and sign the lease so i'll write out a list of questions for him to ask before doing either of the above.

00ec25

Smith_007 wrote: »

Put simply, once you have signed a binding tenancy agreement, if a landlord/agent then asks you for a deposit, you could simply tell them to go swivel, whist waving your binding contract in their face.

that would be the binding contract which states the rental amount and value of any deposit to be taken

I take it you have little experience of rental agreements?

longtimelurkersam

I had to pay a £3k deposit on my current place and the LA was keen to get it as early as possible even before referencing was completed. I told them in no uncertain terms that they would get the deposit by online transfer once I had received a copy of the contract, was happy with the terms within it and both the LL and I had signed it. They didn’t produce the contract for weeks (overseas LL) and whilst it was all okay I would have been very nervous having given them that much money just in case the contract was not what I wanted.

Smith_007

00ec25 wrote: »

that would be the binding contract which states the rental amount and value of any deposit to be taken

I take it you have little experience of rental agreements?

Oh dear :rotfl:
And just how are you going to get the deposit money off them, providing they pay their rent in full and on time. (And thus cannot be made to leave until the AST expires?)

I take it you have little experience of collecting monies owed or real world rentals!

A landlord asking for a deposit at the point of signing (not after) is saving themselves a world of hurt.

TDMum

So hubby went to see the letting agent, asked all of the questions and the upshot of it all is that we've paid the £750 deposit and have signed the proper tenancy. We have a copy and he has a copy so it's all above board. First months rent to be paid on the day we collect the keys. He's also meeting us at the property at the weekend to allow us to measure up etc so we can see if our furniture will fit And all that jazz.

Thanks for all of the replies!