Tenancy - Deposit/Months in Advance query

ceri123

My husband and I went bankrupt in Dec and our house is due to be repossessed very shortly. We have found somewhere to rent, through a private landlord. He does credit checks, so we were upfront about the bankruptcy, and he said that's no problem as long as we have a guarantor.

Initially he wanted the equivalent of a month & a half for deposit, plus the month's rent in advance. He says the credit check agency, having done their checks, have now advised him to get two months rent in advance, as well as the deposit.

This will be difficult for us to find, so he was nice and said ok, I'll accept one month as deposit, plus the two months in advance.

I queried whether we then need to pay month no.2's rent or whether this is already covered by the 2 months in advance, and he said yes, we do. So in effect we will always be one month ahead but gain no benefit from it.

Isn't this in effect asking us for an additional month as deposit??

I just want to make sure he's not screwing us here. My husband isn't earning much, and I don't start working til 4th Feb and won't be paid til the end of Feb.

I know as bankrupts, we can't be choosy and some landlords demand a lot more upfront. I just wanted to check about the way he is doing it. I assumed that if 2 months were upfront, then month 2 was aready paid and we wouldn't then have to pay until month 3.

Thanks,
Ceri

topletters

Hi

This is a difficult one as there are few legal restrictions on what a landlord can charge. It's a sellers market and they really do have people over a barrel. My initial question is has the landlord put anything in writing to you outlining the proposed charges for the RIA & deposit, and have you signed a tenancy agreement?

I dealt with landlords & tenants for years in my last job and I hardly came across a situation where 2 months or more RIA were charged. What is not unusual these days is for landlords or lettings agents to charge a month and a half or more for the deposit while just charging one month for the RIA. I would suggest tell the landlord you will be happy to pay to pay any greater sum for the deposit (as he can always take any arrears from the deposit at the end, so long as he clearly states this in the tenancy agreement), but that you will just pay one month for the RIA. That way at least you are no effectively pay 2 lots of rent alongside each other.

Hope that is some help.

Regards

Mark
topletters

ceri123

Well, interestingly enough, he initially was going to charge the equivalent of a month and a half for deposit, but when he said he needed (according to the credit check agency he is using) to get 2 months RIA, he said he was happy to accept just one month for a deposit.

So I asked when the next payment would be expected, ie. if we pay 2 months in advance, wouldnt that cover months 1 & 2, and then the next payment required would be for month 3? But he said no, there will be a month in hand that will cover notice period when we eventually decide to move out.

I put the phone down a bit baffled, because effectively that's a deposit.

We've had nothing in writing yet. He's waiting for the credit checks to go through for DH's father who is our guarantor. It's all been very last minute and he keeps reminding me he has other interested parties, but we are desperate as the repossession/eviction is imminent.

Am I right in thinking if it's effectively a deposit, it needs to be put in a special scheme?

Ceri

moyilla

Hi
Yes whatever deposit you pay the landlord has to put it into a tenancy deposit scheme. Within 14 days of your landlord receiving the deposit he has to forward you the details of the scheme he has used. At least you will have peace of mind that your deposit will be secure. Again, before you sign ask him which scheme he is going to use. That is something I did not do.

I would ignore him telling you about other parties being interested, he is pushing you and perhaps does not realise his responsibilities with what he has to do with the deosit, he cannot bank the money for himself.

I 100% understand your situation, I was private renting through a letting agent then went bankrupt then had to leave a property and try to secure a tenancy while bankrupt.

Good luck and let us know how you get on :beer:

clutton_2

ask to see the tenancy agreement and read what it says in there - that is what will be what you are expected to do - not what he says

ceri123

So, although he is claiming that the additional one month's rent is advance rent payment, in fact, as it isn't covering month 2 (or in fact not covering any rent until we leave) effectively it is part of the deposit and should be put in the scheme?

RHemmings

ceri123 wrote: »

So, although he is claiming that the additional one month's rent is advance rent payment, in fact, as it isn't covering month 2 (or in fact not covering any rent until we leave) effectively it is part of the deposit and should be put in the scheme?

And if it's a deposit and not in a scheme, could the OP claim back 3x this deposit (or part of the deposit) should it not be protected?

Vaux-Hall

He wants 2 months rent in advance, so you pay 2 months at the start, then 1 month each other month until the last one when you don't have to pay anything.

He probably wants it like that rather than 2 months deposit so he has time to start to evict you before the rent stops, as he can't just take the deposit as rent.

It may actually work out better for you, as at least he can only screw you for 1 month deposit if he's that type.

ruggedtoast

3 years ago my wife ang I moved back from Japan, no jobs or guarantors, found a flat we loved and after it looked like it was about to fall through we offered to pay 6 months in advance.

They accepted but with a similarly high deposit/ months in advance. We;ve been there 3 years and theyve always held over £2000 of our money which I notice theyre now referring to as a deposit.

They can ask you for whatever they want tbh, and it isnt that easy to find a decent place where the landlord will accept you with a failed credit check and no guarantor. Whatever happens make sure you get in writing exactly youve paid and what for.

ness455

Hello everyone,

Yep I am a newbie. You are all probably going to shoot me for sticking up for the landlord, but its only my opinion.

He is only protecting himself, just incase you don't/canno't pay. I am not saying you aren't honest, but you have to see it from his perspective, he is just making sure he has a reserve "just in case". I rent a property, if a tenant does't/cannot pay, it leaves me with a deficit. Not all landlords are rich, some like me are just starting out and cannot afford to loose money on property.

Rental agency's like tenant's with perfect credit reports so they can sell Rental Insurance to the landlords. But you only get insured if you have a good report. In your case, your Landlord won't have repayment protection, so I expect he wants to make sure he has a reserve.

Good Luck,

Tassotti

Basically, you are paying two months in advance, and no, it isn't a form of deposit, and doesn't need to be affiliated to any schemes.

When the tenancy comes to an end, remember that you are two months ahead..ie if tenancy ends July, stop paying rent in May

Tass