UK Landlord Forum / Life

I have a couple who are interested in renting my property even though the property is not actually on the market at the moment. They basically got in touch with me at the beginning of 2015 when it was on the market. Even though they wanted to rent it at the time, I decided to try and sell it instead without anyone in. That didn't work, so I'm now looking to let it again.

I still have to do all the checks, but the couple can only move in in 3 months time because that's when their current tenency comes to an end. I'm fine with that.

Now I obviously need to get something in place which prevents them from dropping out between now and then, in order to make sure I don't waste valuable marketing time. Ideally I would like them to hand over a 6 week deposit and sign the agreement now, but will a tenant want to do this so soon? 3 months before? They have already suggested paying the deposit in a month's time - 2 months before.

Would it be better if I proceed with the basic checks now, such as ID and credit checks, and then 2 months before, ask them to sign the 6 month tenancy agreement and pay the deposit?

Yes, do it.

Do your checks, then get it all signed up and deposit paid in a month.

It's not "normal" but it's not out of the way.

When you then moving house takes at least this much time, its not really an issue.

3 months is quite a long time.

I'd often market a property possibly 1 month before it's ready. I prefer to market them when they are free. However, you explain how this came about, so that's understandable.

As the delay is on their side, I don't think it's wrong to consider asking for a non-refundable holding deposit. Again, this is something I try to avoid but if you document it correctly then I'm sure it can be a useful thing for both sides.

They get the security of knowing you won't market it to anyone else. You get the security of knowing you've got some money if they pull out. They have to put some 'skin in the game' so to speak.

You just have to be clear on when you get to keep the holding deposit... you'd assume it's if they don't go ahead due to anything they decided - a change of heart, change in circumstances etc. - but not if it was because of something you'd changed. Also, if they are credit checked and fail... whose 'fault' is that? Just be clear and it should be fine.

A normal deposit (for damage, wear-and-tear) would be entirely refundable if the tenancy didn't go ahead, that's why it needs to be clear that it's a non-refundable holding deposit.

Thank you!

That's excellent advice, as a new landlord I didn't even think that a holding deposit would be the way to go rather than a standard deposit, of course!! 

Since reading the above posts I've done a lot more research on holding deposits and clear Ts&Cs  that I can send to the applicant. I will definitely be doing this. And then once all the checks have come back, get them to sign the agreement and pay the full deposit, maybe 2 months prior, or before that if possible.

I'll probably ask for half a month's rent for the holding deposit, that seems a common approach.