Tenancy deposit before signing agreement?

ceri123

We have rented many properties but are moving into a new one. We have paid the equivalent of a week’s rent as a holding deposit before referencing but the agent is asking for the full deposit now even though they won’t be providing the tenancy agreement to sign until the move day which is over a month away.

Is that right? I tried asking for the tenancy agreement sooner as the local authority want it before they’ll even start processing the kids’ schools applications but they say they won’t until the day we move in. I’ve experienced last minute signing before (when school applications weren’t an issue) but the deposit and first month were only required as cleared by that day, not a month before.

Surely if we’re paying the tenancy deposit now we should have the tenancy agreement prior to paying this? To reiterate, this is the tenancy security deposit I’m asking about, not holding deposit (which is already paid).

anselld

You should at least wait until referencing is accepted before paying the full deposit. Arguably it does not need to be paid until just before moving in, it cuts both ways.

When you do pay it in full, the holding deposit should be deducted (it is not a fee) and the full deposit should then not exceed 5 weeks rent.

ceri123

Referencing is all sorted. Holding deposit is being deducted from the first month that we’re required to pay just before moving in. Tenancy deposit is same as months rent which they want now. But my thoughts are - what if the tenancy agreement ends up being unreasonable? I’m sure it won’t but it seems odd that they won’t issue it yet.

Cakeguts

ceri123 wrote: »

Referencing is all sorted. Holding deposit is being deducted from the first month that we’re required to pay just before moving in. Tenancy deposit is same as months rent which they want now. But my thoughts are - what if the tenancy agreement ends up being unreasonable? I’m sure it won’t but it seems odd that they won’t issue it yet.

Is the property still occupied? If it is they won't produce a tenancy agreement for you until the current tenants have vacated.

ceri123

No the previous tenants are moving out today. They want deposit on Monday but we won’t be signing tenancy agreement until we get keys on 25/10

G_M

Often the difficulty is that the landlord cannot guarante that current tenants will leave on time. If he's granted a legally binding new tenancy agreement then failure to give the new tenants access would be a breachof contract. Hence it becomes normal practice to issue the TA on or immediately before move-in day.

That does not help tenants much, as they obviously desire certainty about their future, as well as an opportunity to review the wording in advance.

Certainly I see no reason a draft or sample cannot be provided for review.

And given that you say the current tenants are vacating today, I would push for a forward-dated TA. That way both you ad the LL know the contract is binding and will go forward.


As for the deposit, pay it either when you move in, or when you sign the TA, whichever is sooner.

ceri123

G_M wrote: »

As for the deposit, pay it either when you move in, or when you sign the TA, whichever is sooner.

That’s my main concern... they’re asking for full tenancy deposit now (in addition to already paid holding dep) but we won’t be signing/moving in for over a month.