UK Landlord Forum / Life

Dear All, 

I would like to get an advice in regards to property renting (deposit payment arrangements to be precise). 

If we agreed with landlord on terms, how do we arrange a deposit transfer ? 

Is it before we move in or after ?

Or perhaps we shall put it in writing with a deadline to pay after we move in ? 

What kind of documents shall we receive (apart from confirmation of deposit payment) ? 

I already know that we should take landlords copy of ID and proof of ownership. 

I ask this question as I was given an information (by my potential future landlord) that we need to pay deposit before signing the contract.

He mentioned that the first month rent payment should be made after we sign contract (before moving in). 

I do not feel that it is safe however. 

Could you kindly advice on those steps, please ? 

Regards, 

Michal

I think you are expecting your future landlord to take a big risk .Why on earth would he allow anyone to move into his property without the deposit and initial rent being paid? This is perfectly standard and legal.You will receive a document within 30 days of signing the lease,stating which deposit protection scheme is holding the money.Both the rent and deposit will be paid by whatever means the landlord requests-probably bank transfer,less likely a cheque which will need to clear.You will be expected to set up a standing order for monthly rent,unless your landlord prefers to collect it in person every month.
If your unusual concerns are because you have proof that your landlord has ripped people off,then the answer is obvious-look elsewhere.

Agreed.

The Landlord is the one handing over an asset worth many thousands of Pounds to a stranger. The risk is on them in the main. The Tenant should be prepared to pay the deposit prior to receiving keys and the first month of rent (for me that would usually be a week prior - so I can see cleared funds in my account before I turn up for the Check-In). Any Tenant who would not be prepared to do that - basing that on their suspicions regarding my motives - would (simply put) not be renting my property. In terms of the deposit transfer - do it via Faster Payments, then you have a trail. The Landlord should put that into a Deposit Protection Scheme and provide you with the Prescribed Information (if your Landlord indicates this is not the case, or professes ignorance of this then this is reason enough for you not to take the property).

It's likely a fair thing for you to ask for a copy of the Landlord's ID and proof of ownership but I admit it is not something I have ever been asked for myself. So maybe you are being a little over-cautious in this endeavour?

Thank you for responses.

I am not willing to pay after moving in to a new property, I am just used to a different scheme. This scheme is;

We meet with landlord in his flat, check meters, furniture, do the inventory list, check the proof of ownership, verify it with his ID etc.

If all is fine - we sign contract.

Then I pay money (deposit plus for first month in advance). It can be either cash (where we get confirmation of payment from landlord) or a money transfer which takes 15 minutes to reach another account.

Then we take keys for the flat and move in. 

The offer I was given is different (described in my initial post).

HEAVYKARMA asked why I would not pay first, without signing the contract and  giving keys.

Lets imagine that I am renting a room in a 3 bedroom house. My neighbours are on holidays and I am leaving UK for permanent.

I am looking for a quick money and I advertise it on gumtree (to rent a house). I show it to an interested person, we talk and I inform on terms (with a view to sign a contract after I receive a deposit).

This person is concerned that I am the owner of the flat, pays me deposit (let it call 2000 gbp). and waits to be contacted back in regards to signing a contract. Of course no one gets back to him.

London is big and I believe that such scams are possible, therefore my post on that forum.

Regards.

Michalobt

In your first post (what you were offered) and last post (what you seem to be OK with) you still pay the rent and deposit before you take the keys and move in.
So the only difference seems to be in the last post you appear to be saying it is a more real time transaction i.e. you pay by bank transfer and then move in straight away...

I don't really see the difference ... if the landlord is lying (using false proof of ownership) then you will be exposed either process?
In either case you have posted you do get to see the proof of ownership before you hand over the money so there is no difference, if you still feel unsure after seeing that proof then do as Heavy says and look elsewhere...

Your first post said " how do we arrange a deposit transfer ? ; Is it before we move in or after ?  ;   Or perhaps we shall put it in writing with a deadline to pay after we move in ? "
Which implied you take the keys, move in first and then pay a deposit.... that's why Heavy and Hippo have replied in the way that they have...

Best of luck

Quote from: Michalobt on October 13, 2017, 05:51:58 PMI am not willing to pay after moving in to a new property, I am just used to a different scheme. This scheme is;

We meet with landlord in his flat, check meters, furniture, do the inventory list, check the proof of ownership, verify it with his ID etc.

If all is fine - we sign contract.

Then I pay money (deposit plus for first month in advance). It can be either cash (where we get confirmation of payment from landlord) or a money transfer which takes 15 minutes to reach another account.

Then we take keys for the flat and move in.

I would not even travel to the property to meet you on the promise of you turning-up to do the Check-In. I want cleared funds in my account prior to this happening. The problem you have - that I do not have - is that there are plenty of Tenants wanting properties. It's a Landlord's market. Sorry, but you sound more trouble than you are worth (to me) and, therefore, I don't think we'd get to the stage where you'd be accepted as my Tenant. If you have a ignorant  / green Landlord, or one who is exceptionally trusting, then you might be able to swing it to work as you want... but the responses here certainly imply you would not with most Landlords. That's not meant to be offensive - I'm just saying it's my way or the highway - I'm the one handing over an asset worth an awful lot to someone - they need to put their money where their mouth is. If they elect not to, or start to kick up a fuss about doing it the way I want it to be done, I'll just cut my losses and leave you to try that with someone else. I would note it as an "indicator" of how difficult you could be in the future, you see? 

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There is obvious confusion in what you have said in points 2 and 3... a Holding Deposit and a Security Deposit are entirely different things. I advise caution and simplicity, I always stay away from the murky area of Holding Deposits - they are rife with trouble.

.

Quote from: David on October 21, 2017, 11:47:03 AMNo confusion at all, the deposit starts life as a holding deposit, and then morphs into a security deposit once protected.

Poor suggestions here, please don't anyone listen to this nonsense. This adds ambiguity and complexity to a situation that would benefit from neither. I always love people who try inventive ways to navigate the deposit protection legislation - that's what this amounts to, plain and simple. Take a deposit and protect it - it's simple. It can always be unprotected if it is protected unnecessarily, but it can't be protected late if you just decided to bide your time, for whatever interesting reason you might have.

David,I gather you are a solicitor,so I am probably in the wrong-however,I don't understand the bit about the receipt for a holding deposit ideally promising the money is refundable, if the property is not taken up.Does this apply whether the landlord or the tenant is responsible for the deal breaking down? If so,what is the point of such a deposit? The landlord would be turning away other offers,and possibly incurring other fees,with no loss to the tenant who had wasted everyone's time.For anyone to go to such trouble to offer such a deposit,one assumes the property is sought-after,so why would the landlord take such a risk? 

Truly, what is being described here is a nonsense that is attempting to cater for real outlier cases. KISS.