Or we have to sign on the day of moving in and are only allowed to take holding deposit before that?
Yes that should be fine. You would normally want all things done at least a few days before the moving in date.
The deposit and first month rent is paid to Open Rent anyway to ensure fairness.
Many landlords here only use openrent as an advertising platform and prefer to conduct all transactions and paperwork independently to maintain control.
1 Like
The AST can be signed in advance aswell as receiving the first months rent. This should be referenced in contract.
If you want to maintain control, do not give T their copy until move in day, or until closer to date.
We always do give a copy but don’t give the keys, which T receives on the day. Sometimes, we do them a favour and allow to move in furniture a few days earlier. But we unlock and then lock back the flat for them.
3 Likes
There is nothing to stop you signing 6 months in advance if you want to, but its not good practice and a big risk. If anything goes wrong, (property develops a leak, previous tenant overstays, your circumstances change and you have to sell…) you would be in breach of contract and can be sued by the tenant for their costs.
1 Like
David, somebody on Residential LL forum told me that the Tenency Agreement is a contract that shows intention and is not valid till the day T moves in. I asked if T could pull out of signed contract, and was told that, yes, and I’d have to refund first month rent, if taken.
Doesn’t it work both ways? Or is it binding for one side and “shows intention” for the other? Genuinely confused by different replies.
A tenancy agreement is a binding contract on both sides. Its not a tenancy, as that doesn’t begin until the tenant takes possession, but its like any other contract in that if one side defaults, the other side can sue them for their costs, which have to be mitigated. So if the tenant pulls out, you would be expected to try to find another tenant immediately, but you can demand that the applicant pays any costs you can show youve incurred. If you pull out, the tenant can sue you for any temporary accommodation costs they incur until they find another permanent place to live. The situation changes once they become a tenant in that the landlord is not obliged to mitigate their costs when suing.
1 Like
Thanks for that. So, I will have to return first month’s rent to them if T pulls out prior to commencing the tenancy if they signed a TA, will I?
Not necessarily. The applicant has committed to the rent for the full fixed term. You would need to immediately start looking for another tenant. However, you can claim from them rent and re-advertising costs for the days between when the applicant was due to move-in and when a new tenant moves in.