We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Deposit vs Advance Payment

CL1992_2
Posts: 2 Newbie
Hello!!
I recently moved into a property in London for the first time.
When talking to the agent he mentioned (in an email) that the deposit was 3 weeks rent, rent was to be paid every two weeks and there is a £200 holding deposit (or agency fees).
When I looked at the contract I noticed it said instead of deposit it said 'Advance Payment' and now I have received no deposit protection information and no inventory etc on arrival.
I am obviously now fairly concerned that the advance payment was simply a payment not to be seen again instead of a deposit that you would receive on leaving the room in an acceptable state.
Can anyone advice on what exactly is an advance payment and how it could be misconstrued as a deposit.
Thanks in advance
I recently moved into a property in London for the first time.
When talking to the agent he mentioned (in an email) that the deposit was 3 weeks rent, rent was to be paid every two weeks and there is a £200 holding deposit (or agency fees).
When I looked at the contract I noticed it said instead of deposit it said 'Advance Payment' and now I have received no deposit protection information and no inventory etc on arrival.
I am obviously now fairly concerned that the advance payment was simply a payment not to be seen again instead of a deposit that you would receive on leaving the room in an acceptable state.
Can anyone advice on what exactly is an advance payment and how it could be misconstrued as a deposit.
Thanks in advance
0
Comments
-
Never mind what he said in an email.
Since you are already in the property, what matters is
a) what exactly you paid
b) what exactly the receipts you received say
c) what exactly (please quote word for word) the contract says.
It might also be relevant whether you are renting an entire property, or room in the landlord's home, or what? I ask as it is unusual to pay rent 2 weekly.0 -
Thanks for getting back.
TOTAL AMOUNT 1ST RENT: £350.00 From 06th to 19th of May
FURTHER ADVANCE PAYMENT: £525.00
ADMING FEE £200.00 Drawing up tenancy agreements, inventory forms, carrying out credit checks, getting references from your employer, bank or previous landlord, admin costs such as phone calls, postage, etc.
TOTAL: £1075.00
was the request for payment and the contract says
1.4.!Consideration!
The!Licensee!shall!pay!to!The!Management!Agent:!
a)!!!A!licence!fee!of!£350.00!will!be!pay!every!two!weeks!always!in!advance!in!respect!of!the!occupation!of!the!Room!
b)!!!An!amount!of!£525.00!will!be!paid!in!advance!of!occupation0 -
Does your landlord live in the same house/flat as you?0
-
To be precise, what name is given as Landlord on your agreement and do they physically live in the property? As this may be different to the building owner if you are a subtenant / lodger. This will determine if any deposit needs to be protected
The £525 is exactly 1.5x the fortnightly rent. What does your contract say about giving notice / payments at the end of the tenancy? Does it say anything about whether you use that £525 for your last 3 weeks rent (maybe rent in advance, arguable still a deposit) or whether it will be returned after accounting for damages (definitely a deposit)?0 -
I note the contract uses the term 'licensee'. Not tenant.
For the 3rd time, please explain the set-up in the property. Who lives there? What are you renting?
I don't believe we yet have visibility of all the relevant wording in all the relevant documentation, but my instinct is that the 'advance payment' is in practice a deposit (which may or may not need to be registered)
However the landlord/agent is probably trying to disguise it as a further rent payment. In that case you are effectively always paying 6 weeks in advance (and therefore need not pay the last 4 weeks rent when you leave).0 -
What does your contract say about payment dates? It could be that you are suppose to pay on 20th of each month, so you would pay one payment to take you to this date and then your first full month, ie. you've paid until June 19th and next payment is due on June 20th.
Ultimately, you need to ask the agency though.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.3K Work, Benefits & Business
- 599.5K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards