Start of tenancy, few questions

by Readers Question

13:55 PM, 17th December 2014
About 4 years ago

Start of tenancy, few questions

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Start of tenancy, few questions

I am a landlord and just signed tenancy agreement (with online agent and their AST). Start of tenancy, few questions

Tenants too have signed the agreement, but they said would be depositing rent + deposit on the start day of tenancy.

What happens if tenants don’t deposit on time let’s say 5pm on that day?

Do I have an option to cancel the AST?

Thanks



Comments

Mark Alexander

13:58 PM, 17th December 2014
About 4 years ago

It is never a good idea to give a tenant a signed tenancy agreement until they have paid the first months rent and deposit.

I'm always happy to give my tenants an unsigned tenancy agreement so that they can be sure they are happy with it but I never give them a signed copy until move in day.

How are you proposing to deal with the move in?

Have your tenants been referenced and have you purchased Rent Guarantee Insurance?
.

Simon M

18:56 PM, 17th December 2014
About 4 years ago

In addition to Mark's points, you must ensure the tenants aren't given keys until the money has been paid into your account (or your agent's account). You pay your agent to look after your interests and a good agent will guide you so you'd never be in this situation. I'd start looking for another agent - they may be cheap because they're online, but a mistake could cost you a lot more.

Rod

23:26 PM, 17th December 2014
About 4 years ago

I've become very cynical over the years. Check everything and do everything by the book and if prospective tenants are not squeaky clean, walk away. Get yourself some good walking boots, you'll need 'em !

Romain Garcin

8:07 AM, 18th December 2014
About 4 years ago

Signature on tenancy agreement is not paramount. In fact I would think that the best practice would be for the parties to sign the agreement then for the rent and deposit to be paid, then for the keys to be given.

In any case, here I would tell the tenant that they won't be allowed access to the property until deposit and rent have been paid in cleared funds.

Sharon Betton

10:54 AM, 18th December 2014
About 4 years ago

In agreement with all comments. The sign-up should be one, smooth-flowing process - interview, accept tenant, reference tenant, move-in day, tenant arrives with deposit and rent in advance, signs tenancy agreement, deposit and rent handed over, keys given. Any deviation from this could spell trouble.

Dr Rosalind Beck

14:51 PM, 18th December 2014
About 4 years ago

It is getting more and more common for tenants to say they have made a bank transfer on the day the tenancy starts. I have stood waiting until I see the money has come into my account, before ever handing over keys. If you do not have the money in your account at 5pm on the given day, just tell them they'll have to wait another day or for however long it takes for the money to show in your account. Under no circumstances give them the keys before you have cleared funds. All the best with it.

b

15:06 PM, 18th December 2014
About 4 years ago

thanks a lot everyone for the support and comments.
Lessons learnt on how to deal in future. hopefully all goes well... if not, I need to prepare for next steps. Spoke with tenants and informed that keys will be handed only after funds clearance in full, they are happy with that though.
On line agent too insisted the same.

Gary Nock

23:37 PM, 20th December 2014
About 4 years ago

If paying online insist on paid funds in your account the day before or cash on the day. This should be made clear to tenants beforehand. Bear in mind that if this does not happen then AST DPS and inventory have to be altered to reflect new date. If you are ok with handwritten amendments -fine. Me- I think it looks a bit scruffy. So I tell them if move in does not take place as agreed then there is an additional cost of £50 to amend and reprint all tenancy documents.


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