Start of tenancy - when to pay deposit?

jd87

I am moving into a property in the middle of December and I'll be renting it under the usual assured shorthold tenancy type of agreement. Even though the start of the tenancy is over a month away, the letting agent wants me to sign and return the contract and pay the fees, deposit and first months rent all as soon as possible. He said that the landlord won't sign and it won't be taken off the market until this has all been paid.

I've never had to do all of this so early before. We've got the money and we can pay it, but it's a huge sum to hand over. Where do I stand, is it ok to pay so early? I'm sure that every time I've done this before I've just had to pay the fees early and then everything else gets paid when you collect the keys.

This is in England (just incase the procedure is different elsewhere).

stuartroberts

We had to do this to guarantee the property we rented 6 months ago

jd87

Just incase anyone is wondering what the problem is, my concern is about the way our money will be in limbo: we hand it over to the agent, but nothing is signed yet. What if the agent went bust for example?!

Shouldn't that period of "money in limbo" be kept as short as possible?

stuartroberts

We signed an agreement one months rent in advance was placed straight into the deposit scheme, they could go bust at any point in your rental and the property owner would be in trouble as well. have they been going for a long time?

Pixie5740

According to Shelter, your LL has 30 days from receiving your deposit to lodge it in one of the protection schemes.

As for the rent, is the tenancy agreement getting signed at the same time you hand the money over?

jd87

We (the tenants) are signing it, and handing the money over, effectively simulataneously. The landlord will then sign the agreement once we have paid.

It seems to be a well established agent, so I'm sure I'm probably worrying over nothing. It just surprised me as I've never had to do it so early before.

SunnyJan_2

jd87 wrote: »

I am moving into a property in the middle of December and I'll be renting it under the usual assured shorthold tenancy type of agreement. Even though the start of the tenancy is over a month away, the letting agent wants me to sign and return the contract and pay the fees, deposit and first months rent all as soon as possible. He said that the landlord won't sign and it won't be taken off the market until this has all been paid.

I've never had to do all of this so early before. We've got the money and we can pay it, but it's a huge sum to hand over. Where do I stand, is it ok to pay so early? I'm sure that every time I've done this before I've just had to pay the fees early and then everything else gets paid when you collect the keys.

This is in England (just incase the procedure is different elsewhere).

In Year 2013, the Agent asked us to pay the non-refundable reservation fee first for a flat we would like to rent. Then the Agent asked us to transferred 2 months rental as deposit together with the writing fee to the Agent in mid-May. 2 days later, the ASTA signed by us & the Agent. Invoices & email confirmed he received the moneys from us. Our tenancy commenced on 1st Sept. We paid the half years rental to the Agent at the end of August.

Until end of Sept, we alerted the 2 months deposit was not protected under any TDS. We chased for the Prescribed Information and the Landlord information. None reply from the Agent till mid-Oct. Therefore we apply the online claim to claim the Agent 3 times the deposit he took from us in May. Until now, still in legal proceedings.

I suggest whenever you pay the deposit and fees to the Agent (best with bank transfer), asked the Agent to provide you receipt and sign to confirm the moneys he took. We usually pay 3 or 4 days before we move in a new flat.

CKhalvashi

stuartroberts wrote: »

We signed an agreement one months rent in advance was placed straight into the deposit scheme, they could go bust at any point in your rental and the property owner would be in trouble as well. have they been going for a long time?

One word. Woolworths.

jjlandlord

jd87 wrote: »

Just incase anyone is wondering what the problem is, my concern is about the way our money will be in limbo: we hand it over to the agent, but nothing is signed yet. What if the agent went bust for example?!

Shouldn't that period of "money in limbo" be kept as short as possible?

There is no "money in limbo":
(1) When you pay it you get a receipt.
(2) You pay to the agent on behalf of the landlord: When you pay the agent it is deemed as if you had paid the landlord.

Lastly, the proper way to do it is to sign the tenancy agreement then to pay first month rent and deposit.

norainbows

I have rented all my life and at the moment about to take over a new Tenancy through a reputable Estate Agents. No agency I have rented through has EVER asked me to pay the deposit and rent before the actual signing, which is usually the day they hand you the keys and the tenancy begins. The only fees I have ever paid (in my life of renting) before the day of signing has been all the other fees which include the credit checks and agency fees. I would always be weary of agents that ask this. Check they belong to the Estate Agents governing body. Check that you deposit will be deposited and protected in a rent deposit scheme. I have never heard of handing over the whole amount so far in advance. Be careful. Why not phone around other recognised agents and ask them what they do. Ask as if you are still looking.