Renting first house; bond/deposit question

ThatElliottGirl

Hi,
Me and my other half are just about to rent our first house, so obviously we're a bit clueless! We've found a house we like, renting directly from a private landlord, and he's asked us to send him a cheque for the £500 bond. After this point, he's said we'll sign the contract.

Is this the normal way round of doing things? We've only ever rented student accomodation before, and to be honest, I can't remember when we paid the deposit. Just a bit wary of sending a cheque to a guy I've only met once; do you think it's worth popping round with the cheque instead and asking for a receipt or something? Or is this just paranoia?

lil_me

Ask for references from his previous/other tenants. The rent up front and bond is usually payable when the tenancy is signed. Always ask for a receipt for anything paid. If you wish to pay cash when you sign the tenancy agreement then ask him to do this, but again ask for a receipt, this would be a better way than sending cheques. Ask which tenants deposit scheme he is placing your deposit in.

janegresty

Normally when renting you will pay a deposit (which equals to 1 months rent) and you will also pay 1 months rent up front. So if your rent pcm is £500 then in total you will normally pay £1,000 up front.
Some landlords will also charge an admin fee or credit check... but this is mostly letting agents etc. Hope this helps!

beer_tins

Either do that, or suggest giving it to him in cash and signing the contract there and then. As it's direct with a private landlord you've got to be careful. Also, ask for a copy of the contract first before you all sign it and show it to someone (your parents?) who might know. It's worth being cautios when renting direct...

beer_tins

Just to add, get a reciept for EVERY cash/cheque payment. Suggest a standing order to his bank to pay rent, it is less hassle and there is a paper trail if things don't go to plan.

JanCee

Don't send a cheque it could be a scam. Draw out the cash and pay it over at the same time as the contract is signed. As previously mentioned, your deposit must be lodged with one of the new TDS schemes. Check the inventory as if you were a forensic scientist and take lots of pictures of the property casually mentioning to the landlord that it's in case of any "difficulty" with the return of your deposit.

ThatElliottGirl

beinerts wrote: »

Just to add, get a reciept for EVERY cash/cheque payment. Suggest a standing order to his bank to pay rent, it is less hassle and there is a paper trail if things don't go to plan.

He's said that the rent needs to be paid by direct debit; I don't think this is the same as a standing order, but just wanted to check that it was still okay.

He's apparently going to be on holiday for the next two weeks; I'll probably give him a ring and say we'll pop round with the cheque/our references and sign the contract then. It's all so complicated! I don't want to be ripped off with the £200 agents fees that they all seem to want, but I also don't want to lose £500 to some scam. He did seem to be a nice guy, but I don't want to put all my faith in that!

Do I need to see proof that it's in a TDS scheme, or is just asking okay?

beer_tins

RE: Direct Debit, I think he means standing order. Loads of people call Standing Orders Direct Debits by mistake, it's very common! It is unlikely that he is set up to charge Direct Debit as a private person! You may want to double check but I think you're fine in that regard.

moneysavinmonkey

presumably you have the address of the flat where he showed your round so unlesss it is a fairly elaborate hoax then you could easily report him to the police if he knicked your £500! As others said make sure you get a receipt though.

i find people often say direct debit when they mean standing order. You are right though to say they are completely different things:

standing order is an order your make to your bank to pay a beneficiary a set amount of money on a regular basis. You can cancel it at anytime.

Direct debit is an order to your bank to allow a beneficiary to take funds from your bank. The beneficiary must give you notice of when + how much they intend to take but the key point is that they can take more or less what they like! - although they are bound by certain rules + there is a scheme guarantee.

Unless the landlord runs a lettings company he won't have the facility to do direct debits so he means standing order.

Fred1_2

ThatElliottGirl wrote: »

Do I need to see proof that it's in a TDS scheme, or is just asking okay?

The landlord needs to give you Section 13 Prescribed Info within 14 days of taking your deposit. If he chooses the custodial scheme, you will also get a receipt direct from the scheme - I don't know about the Insurance based scheme.

clutton_2

if you give him two sums - one for the first months rent - and one for the deposit - ask for two receipts